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Wednesday, November 11, 2009

KBR improperly billed ($103 million) for security guards, senator says

Source: Houston Chron/Bloomberg

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.” LinkHere


Blogger Mac said...

As you know the importance of security, yes every individual wants the secure protection if he paid for this.

16/11/09 5:18 AM  

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