KBR Loses Afghanistan to Fluor & Dyncorp
DynCorp, Fluor Win Afghan Support Work Worth Up to $7.5 Billion
By Tony Capaccio
July 7, 2009 (Bloomberg) — DynCorp International Inc. and Fluor Corp. have been picked over KBR Inc. for five-year contracts worth as much as $7.5 billion for each company, if all options are exercised, to support the U.S. troop build-up in Afghanistan, according to an Army official.
Falls Church, Virginia-based DynCorp International Inc. and Irving, Texas-based Fluor Corp. each won basic one-year contracts worth as much as $1.5 billion and four one-year options, Jim Loehrl, executive director of the Army Rock Island, Illinois, Contracting Center, said in a telephone interview.
Today’s awards are the sixth and seventh — and largest — since the program was revamped in April 2008 into a competition that now pits Houston, Texas-based KBR, the incumbent contractor that won the original logistics contract in 2001, against DynCorp and Flour for individual tasks. KBR hasn’t yet won a task order.
KBR “remains committed to providing the Army quality service,” KBR spokeswoman Heather Browne in an e-mail response to a request for comment. “We remain proud of the work we have performed and we are humbled to serve our troops.”
DynCorp will take over services KBR provided for tasks such as laundry, food services and maintenance for existing base camps in southern Afghanistan. It also will build new bases as needed to accommodate the increase to about 68,000 troops from about 57,000 today. Fluor will take over similar services in northern Afghanistan.
Asked why KBR didn’t win any of the new orders, Loehrl declined to provide specifics.
The selection process took into account the technical aspects of a proposal, past performance and cost, Loehrl said.
“The Army awarded contracts to the companies that provided the best value,” he said.
Houston-based KBR, then a unit of Halliburton, won the prior competitive logistics contract in December 2001 and has since become the largest contractor in Iraq. That contract is worth $31.7 billion this year, according to Army figures.
“KBR has a proven track record of serving the military in an austere and unpredictable environment,” Browne said in her e-mail. “Our commitment in this regard will continue.”
KBR has drawn continued criticism from Pentagon auditors for its bookkeeping practices and costs incurred with the contract even as it has been praised by troops and commanders for the services provided.
A congressionally mandated independent bipartisan panel on wartime contracting concluded in its first report last month that KBR wasted billions of dollars through inefficiencies, lax oversight and poor management of its contract.
“The services could have been delivered for billions of dollars less,” the commission said in a report released at a hearing of the House Oversight and Government Reform’s national security panel. “Substantial evidence supports the view” that KBR’s services “cost too much.”
Loerhl said KBR was entitled under the law to protest the awards. (click HERE for the original article)
First KBR loses Kuwait and now Afghanistan. Hmmm. If we can’t get them to pay in the “jury award” area, we can try to get them in the “no more billion dollar contracts” area.
Looks like I have a new Heather Brown quote!! “We remain proud of the work we have performed….” Really?