Does KBR Make Money Off Dead Soldiers?
An Associated Press article came out this morning and I guess it makes an appropriately disgusting Halloween post.
KBR 3Q profit rose 35 pct as revenue climbs
Associated Press 10.31.08
KBR, which provides engineering services to the energy sector and the government, said Friday its third-quarter profit rose 35 percent as a newly-acquired business and work on Gulf of Mexico vessels drove sharp revenue increases.
Net income rose to $85 million, or 51 cents per share, in the three months ended Sept. 30 from $63 million, or 37 cents, a year ago. Income from continuing operations totaled 44 cents per share, including Hurricane Ike-related costs of 4 to 5 cents a share. (click HERE to read the rest of the article)
First, let me clarify, I think it’s great when companies make money. Especially in this day and age. BUT…I don’t feel the “end justfies the means”! With that said, I have a few questions for KBR, the DoD, Senator Dorgan Chairman of the Senate Democratic Policy Committee and Congressman Waxman, Chairman of The Committee on Oversight and Government Reform.
#1 Under the current LOGCAP III contract, does KBR invoice the DoD for attorney fees incurred while defending themselves in suits filed by former employees and families of dead soldiers and so on?
#2 Under the current LOGCAP III contract, if KBR loses a suit and a settlement is awarded, can KBR invoice the DoD for that settlement?
#3 Under the current LOGCAP III contract, if KBR is allowed to do #1 & #2 above, are they allowed to add their 1% (ie cost plus %1)?
#4 Under the current LOGCAP III contract, if KBR is allowed to do #1, #2 & #3 above, does the DoD add these invoices in when figuring KBR’s Award Fee amount?
I guess my main question here is:
Is KBR Making Money Off Dead Soldiers and Injured and Killed U.S. Citizens?
I was wrong…I have another question. Are my tax dollars paying for KBR’s attorney’s? OMG!! Say it isn’t so!
Somebody set me straight!
Ms Sparky
Other Related Posts From Ms Sparky
- Hero soldiers ‘thrown in the trash’: Military dumped body parts of dead servicemen killed in Iraq and Afghanistan in LANDFILL
- Money laundering, corruption & financial crimes isn’t just for USG contractors in Afghanistan
- Showing The PMSC Sector The Money
- They’re looking at me, make them stop!
- Indictments, convictions, rewards & let’s make a deal
Friday, October 31st 2008 at 11:16 pm |
Ms Sparky;
I appreciate your service to your company when you worked for KBR in Iraq. I know you went simply to do the right thing and not because you could make more money that you have ever dreamed of. Did your “ends” justify the ” means? I have lots of friends that work for KBR and Halliburton and they are decent hard working people. So back off of the snide comments and hope that companies like KBR keep making money so they can pay taxes. These taxes fund programs that will help people who need it.
Ms Sparky’s Response:
First, let me clarify just a couple things. 1-I don’t think you really do appreciate my service to KBR (Snide Comment!) 2-I am from the PNW and was making much more than the 14.90/hour that KBR was paying. So that kind of blows a hole in that comment! 3-If you take the time to read my posts, I have never trash talked the normal everyday KBR employee that is just trying to do the right thing and trying to take care of their families. If I trashed a normal KBR person it was THAT person only. I worked with some amazing people in Iraq. But that doesn’t make what KBR is doing right. It’s still wrong. KBR as a company is Iraq is septic. Not the people, the company. Obviously you didn’t work for KBR in Iraq!
As far as paying taxes go…they are being paid by my taxes..so it’s kind of a wash!
I am totally committed to exposing KBR (the company) in Iraq for what they are.
Thanks for commenting
Saturday, November 1st 2008 at 3:59 pm |
How can this be true? Where is the incentive to do things right? In the US if you have no moral compass to do the right thing in your business, the threat of losing a lawsuit and being tied up in litigation is usually a strong deterrent. But if you know, good or bad, win or lose that you won’t lose a dime and according to this post might even make money then where is the check and balance? This has just got to be wrong. Is Congressman Waxman aware of this?
Ms Sparky’s Response:
I am going to steal that phrase from you..”no moral compass” I love that. You’re right. What’s the incentive. There is none. I have notified Senator Dorgan and will notify Congressman Waxman, as well as others, of my concerns. Of that you can be certain!
Sunday, November 2nd 2008 at 4:26 am |
I currently work in Iraq and have since 2004. I don’t what happened to you to make you so btter but evidently something did.
I have worked for Brown&Root/KBR for the last 35 years and always found them to be people of their word and have always tried to do best by their employees. I think you are very limited in your understanding of the enormity of the task that has been undertaken here and don’t have a clue of comprehension of how it is to be done. A job like this, as far as I know, has never been undertaken. The problems in logistics alone is enough to make someone quit. 1)For a long time, the average for a convoy making it through was 1 out of 6. How would you like to run a job in the states, much less here, when only 1 of 6 supply house deliveries made it to your job site??
2)What if the average amount of time your employees stayed on the job was less than one year??All the people you have trained left inside of a year???
3) How about at any given time, 30 to 40 per cent of your work force could be on vacation (R&R)??
It is a major effort in frustration to do this but if anyone can, KBR can.
Ms Sparky’s Response:
“Bitter” is not exactly the word I would use to describe how I feel about this. Disgusted, appalled, revolted and angry. Very very angry. Not at the average KBR employee. At KBR corporate, KBR management in country, above project manager!
Don’t tell me how hard it is to get material. I know better. The whole 1 out of 6 deliveries is BS..just BS!! Who do think you are trying to fool. I was there. KBR had no incentive for their people to stay once they were “boots on the ground” in Iraq. Because they made money on every new hire. More people would have stayed if they had been treated with dignity and respect.
I have a question for you. Is there a scale somewhere or a rule of thumb maybe, that determines how hard a job has to be before the “anything goes”, “we’re not responsible for anything” management style kicks in? Before it’s just OK the kill soldiers, truck drivers, treat third country nationals like slaves, protect rapists and others. Not to mention squander and waste vast amount of tax payer dollars while not providing the services contracted.
You statement and I quote “How would you like to run a job in the states,”, in the States someone would be going to prison.
Ms Sparky
Sunday, November 2nd 2008 at 10:10 am |
This is for “philtx”. Who do you work for? It’s can’t be KBR. I worked for KBR for 2 years and nothing you said makes sense. I don’t know where you are at, but you make it sound like 99% of convoys don’t arrive. That’s not true. And for people not staying. If KBR was more truthful with them. And stopped trying to screw them at every turn and treated them like decent employees maybe they would stay. And as far as training…what are you talking about? KBR doesn’t give you any training. Minimal orientations are all you get. And most of that is given with a “I can’t really be bothered with you” attitude. And as for R&R what KBR didn’t see that coming? KBR isn’t the only one that could have taken this contract. But I can’t imagine the likes of Bechtel or Parsons or Fluor doing it like KBR has.
You sound like the typical KBR – I’ll do anything you say boss – company man.
Ms Sparky’s Response:
I can’t remember receiving any safety training. If we did it was something mandated after an accident. We got the mandated Trafficking In Persons (TIPs) training. What a joke that was. They acting like they didn’t know that was going on. As far as convoys…we got the majority of our. They just didn’t order what we needed as far as tools and material goes. I just asked another person that was at Slayer. No formal training of any kind.
Monday, November 3rd 2008 at 4:02 am |
After read all these comments I felt compelled to add my two cents as a former soldier, KBR employee and tax payer. All of the above statements are partially true. KBR will get reinbursed to defend against litigation brought against the company. What company would chose to take on a contract with endless liability? As far I know and my knowledge is considerable; they do not get profit on it. I know its the idea that is offensive anyway but the fact is the 2% award fee for the TO would get damaged more that it would benifitial for company. KBR is inefficient, but like our country itself it may have many faults but its still far better than most. LOGCAP is the contractor of last resort, if the military cannot self perform, or direct contract. Why is it then that they chose to use them more often than not? Despite all the faults listed, KBR is the best able to perform the mission.
There is no incentive for KBR to have to replace employees, the time delay in replacing the person conteracts the mobilization costs.
People leave due to the stress and because KBR is the lowest paying contract in Iraq for EXPATs. There is no provision in the contract for raises or performance insentive for the individual.
TSTI are by company policy suppose to be filled out before each task and KBR assumes that you are adequately trained as that was the pretense of your hire.KBR recruit people like the military and from the military therefor all the inherent weakness of their system are in KBRs.
To my knowledge none of the electrical failures were caused by a KBR employee but a direct government contacted Company or an existing system, KBR fixes these systems as directed but does not perform regular maintenance until a full saftely check is done. Ussualy it fails because the other contractor did not perform the work per the british stadard and the government does not have adequate QAQC people to assure this is done. KBR will quote a price to bring it up to stadard the military does not have funds to pay. So what happens? You cant sue the governmnt;you dont know who the original contractor is, whos left to sue but the big bad wolf KBR.
KBR is reliant on government escorts per the contract for their convoys, limited troops mean limited convoys at the militarys disgretian.
Moral Compass. KBR is comprised of people some good, some bad, but as a whole they are concerned about the well being of the troops and their family and do not wish to harm anyone.
Ms Sparky’s Response:
The simple fact that KBR is reimbursed for litigation is disturbing to me. That gives no incentive for KBR to do it right thing. It falls right back to…”let’s just do it this way till we get caught” management style. Then there is not repercussions at all. After the this Level III CAR which should be a Level IV I am disgusted with the DoD for even considering giving KBR their Award Fee. Hopefully we can put a stop to that.
I knew very few people who got over there and then went home because the wages were too low. They may have went to another contractor. They went home primarily because of the KBR crap. Most licensed electricians that went home left because they weren’t given tools, material or respect. Now they’ve had to increase wages and require licensing and get tools and material! Hmmmm.
And yes….KBR has some great people working for them and then they have some that need to go to jail. As a KBR employee, they tell you nothing You don’t hear the evidence at the Congressional Hearings. You probably don’t hear it on the news. You don’t hear about the lawsuits. I didn’t hear anything when I was there. I knew nothing about the electrocutions. It wasn’t until I left that I found all this out and was amazingly disturbed that I was any part of it. But I am proud to say, that as a KBR electrician….no body died in my area of responsibility!
Oh yeah…nice try. But we didn’t work to the British Standard. You know that.
Monday, November 3rd 2008 at 4:36 am |
I am not giving KBR a cart blanche on this…. I know serious mistakes have been made and will continue to be made. I have made them. But this continuous whining and complaining that goes on with a lot of these people is just mind numbing and helps no one. Do you ever wake up happy? This is the real world….and guess what…it ain’t perfect. I know I sound homey but I am just tired of seeing KBR take the body shots when 95% of it is unjustified. Do you bother to post the articles that say of the 17-19 electrocutions in Iraq only 2 can be directly attributable to KBR. I know….I have heard it….1 is 1 too many. But soldiers working in hot panels, soldiers sticking tv antennaes in overhead lines etc are not KBR’s fault. I am fairly sure I am not accomplishing anything but I am not going to stop trying. Last but not least, the company that affords me the opportunity to walk into the px once a month and buy a $100 of $10 gift cards and randomly pick soldiers to give them to, with a “good job mam or sir”, and see tears well in some of thems eyes can’t be all wrong.
Take care
Ms Sparky’s Response:
Before we start. I wake up happy every day!! Everyday!! My life is blessed!! Because I choose to take on KBR and let’s not forget the DoD does not make me an unhappy person.
Let’s get started. Those increased wages you are probably getting now, is because people stood up and said ENOUGH!!! Those qualified licensed tool partners you’re getting now (instead of the pizza delivery guy) is because people stood up and said ENOUGH!! Those tools and material you are getting now is because people stood up and said ENOUGH! You don’t really think KBR has had a change of heart all of a sudden and is doing all that out of the goodness of their heart do you?
As far as your 17-19 goes I’m sure that’s what KBR tells you but you are mistaken….and let’s not forget the hundreds of injuries such as the young soldier that was just medivac’d to Germany. Oh and then there are the thousands of fires and those deaths. It’s negligent plain and simple by KBR and the DoD.
I don’t place blame on you or any of the average working people. I worked there for two years and fought everyday to do a good job and do the right thing. I know how it is for the average KBR employee. It’s management, it’s corporate. It’s disturbing.
Monday, November 3rd 2008 at 3:04 pm |
In response to “philtx”. I hear you making excuses for KBR as opposed to holding them accountable. You’re right when you comment that it’s not a perfect world. And Ryan Maseth didn’t die in a perfect world. He died in a shower in Baghdad that KBR was “PAID” to maintain and fix what was broken.
Ryan Maseth wasn’t one to whine and complain but he was one that took pride in his work regardless of what/where he was assigned. He died so that YOU “philtx” could defend KBR. The same company that failed to do their job and electrocuted Ryan in his shower after a long hard day of work. Ahhh, and then there’s the death of yet another soldier on July 5, 2008. The Army advised the family that their husband and father was electrocuted in Iraq.
As for KBR taking body shots when it’s unjustified, ask Ryan’s family what’s unjustified.
Let me leave you with one more thought…while you find it necessary to defend KBR and make excuses for them, who is defending our troops?
Ms Sparky’s Response:
I guess there is really nothing more that I can add to that except…WELL SAID!!
Tuesday, November 4th 2008 at 6:27 am |
I ran across this article….very good from the Washington Independent.
http://traffic.outbrain.com/network/postfr.jsp?agent=blog_JS_rec&post=http://www.huffingtonpost.com/2008/08/04/kbr-we-cant-be-held-respo_n_116722.html&rfdid=8245871
Tuesday, November 4th 2008 at 5:14 pm |
Who’s right, who’s wrong!!!! If KBR is not the best contractor to work for, then who is?????
Ms Sparky’s Respsonse:
I guess it all depends on what you do. It is my experience that professional ethics won’t get you very far with KBR. Maybe and that’s a big maybe…Fluor and Dyncorp will be better. Without oversight from the DCMA none of them are going to be worth working for.