KBR improperly billed for security guards, senator says
Bloomberg News
Nov. 11, 2009, 2:54PM
KBR, the largest contractor in Iraq and Afghanistan, improperly billed the Pentagon and was paid about $103 million for armed security guard services, a U.S. senator says.
In a Nov. 6 letter to Defense Secretary Robert Gates, Sen. Claire McCaskill, D-Mo., who chairs a contracting oversight panel, wrote that the Pentagon has recovered $42 million of the payments.
McCaskill said she was concerned the Defense Department “is not moving quickly enough to recover the remaining $61 million” and asked Gates for a status report by Dec. 1.
KBR officials have not seen the McCaskill letter but “the assertion KBR has engaged in ‘improper’ billings is false,” said company spokeswoman Heather Browne in an e-mail. “KBR has previously addressed billing issues and worked with the government to answer questions raised,” she said.
The billings were part of the Houston-based company’s $34 billion contract to provide housing, food, laundry, mail delivery and fuel. The Defense Contract Audit Agency first identified the billings in August 2007. McCaskill said the failure to recover all the money by now “raises questions about the sufficiency” of Pentagon efforts “to recover disapproved costs on other contracts.”
The Pentagon audit agency believes the entire amount should be repaid, because the contract specifically prohibits contractors billing the Pentagon for armed security guards, said Navy Lt. Cmdr. Darryn James, a Defense Contract Audit Agency spokesman.
“KBR billed the costs as part of the payments to subcontractors,” James said in an e-mail.
Army Sustainment Command spokesman Linda Theis said the private security costs “were embedded in subcontract costs and were not evident in the normal review of interim vouchers,” and the Army is continuing its efforts to recover the remaining $61 million.
KBR’s Browne said the company is contesting the $42 million in court and will fight paying back any additional funds. (click HERE for original article)
I have to add something in response to this statement: Army Sustainment Command spokesman Linda Theis said the private security costs “were embedded in subcontract costs and were not evident in the normal review of interim vouchers,”
Does anyone else think that KBR MIGHT have been just a snidge bit deceitful?? Or is it just me being too hard on poor little ole KBR!!!
As for the Army Sustainment Command, it would appear managing KBR’s LOGCAP contract might be a little more than you can handle at this time. Why not subcontract that out to someone who doesn’t have a vested interest?
Ms Sparky
KBR – I SUGGEST YOU FOLLOW YOUR OWN LEAD AND TAKE YOUR ILLEGAL CLAIM TO “BINDING ARBITRATION”. BRING IT TO ME AND MY FRIENDS AND WE WILL SETTLE YOUR CLAIMS:)! WE WILL HANDLE IT LIKE YOU HAVE HANDLED YOUR OTHER “BINDING ARBITRATION” CASES WITH PEOPLE WHO WORKED FOR YOU, OR MAYBE – - YES – - – FILE A CLAIM UNDER THE DEFENSE BASE ACT AND LET AIG RUN IT THROUGH THEIR SYSTEM – AND WHEN YOU START FEELING LIKE – HEY – SOMETHING ISN’T RIGHT HERE – WHY ARE THEY TREATING ME THIS WAY – AND YOU LOSE EVERYTHING YOU ONCE OWNED – BECAUSE YOU HAVE TO SELL IT TO PUT FOOD ON YOUR TABLE – YOUR HEALTH FALTERS, YOU FILE BANKRUPTCY. YOU BECOME HOMELESS – - “can a corporation become homeless??? –
SUCK-IT-UP-KBR – - IT’S A WAR-ZONE!!!
Yeap, I saw a SOR (Service Order Request) submitted by military to change light bulb, and you know that KBR charged government $500.000.00. Its crazy the way that KBR does things in Iraq and Afg.
Did I read that right? What that a typo? A $500K Service Order Request? I was under the impression service orders had a dollar cap of something like $1500 over that it had to be done on a Work Authorization/Work Request. I’d love to hear more about this!