Bodie’s “Man-trum” – DCAA you’re not the boss of me!
KBR disputes agency’s claims
The Nov. 4 editorial “Iraq contractor boosts staff as troops withdraw” is inaccurate and KBR would like to set the record straight.
First, it is incorrect to say that KBR will face penalties of nearly $200 million if the company does not trim its workforce. The LOGCAP III contract does not contain a provision for assessing any such fines and no such statement has been made to KBR by DCAA or any other regulatory agency. Instead, the recent audit on which the Associated Press article is written, states that should KBR reduce its workforce by 2,857 people by Jan. 1, cost-savings would be approximately $193 million. This is simply an estimate computed by DCAA.
DCAA states KBR has no plan for withdrawal from Iraq. To the contrary, KBR has explained its plan to auditors, which includes a process to close camps as military personnel are withdrawn and to identify appropriate reductions to the contract price. While the military has closed over 185 camps this year, only seven of those camps had a permanent KBR presence under the LOGCAP contract. Further, to date, KBR has reduced its workforce by 2,622 workers, a 14% reduction. KBR continues to actively pursue opportunities to effectively reduce costs associated with supporting the military.
The broader issue, however, is the illogical theory that a contractor supporting the military should have a concrete plan about how to withdraw its troops prior to the military formalizing its plan. KBR works to support the U.S. military and that work will continue relative to planning for a troop drawdown. Further, it is not appropriate for KBR to make decisions on troop withdrawal planning that could cause serious, negative results in a war zone.
KBR remains disappointed in the DCAA’s heavy-handed intrusion in the logistics process. The continued unfounded and punitive assertions regarding KBR’s work by DCAA and other agencies is a great disservice to our men and women in Iraq. KBR remains committed to engaging in a transparent, fact-based dialogue and in turn, we expect and deserve the same commitment from those in the media. (Link to original article)
William C. Bodie
KBR North American Government & Defense
Houston, Texas
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