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Military to Pay Halliburton Another $5B

Associated Press | July 7, 2005

The military has agreed to pay a Halliburton subsidiary up to $5 billion for another year of care and feeding of U.S. forces in Iraq, a military spokeswoman said Thursday.

The task order calls for Kellogg Brown and Root Services Inc. of Arlington, Va., to provide things like food and laundry service, showers, drinking water and other "quality of life" services for troops in Iraq, said Linda Theis, a spokeswoman for U.S. Army Field Support Command in Rock Island, Ill. The job also includes some fuel transport and other services.

The order is under a larger contract the military initiated with KBR after the Sept. 11 attacks to support U.S. troops in war zones.

The order took effect May 1 and covers a period through April 30, 2006, Theis said.

Halliburton has reported being paid $10.7 billion for Iraq-related government work during 2003 and 2004. The company reported its pretax profits from that work as $163 million.

Pentagon auditors have questioned tens of millions of dollars of Halliburton charges for its operations there. The company says it is a good steward of taxpayer dollars.

The Houston-based company has 50,000 employees spread between Iraq and Kuwait.

Vice President Dick Cheney headed the company from 1995 to 2000, and Democratic members of Congress have repeatedly questioned whether Halliburton received favored treatment because of Cheney's former connection with the company.

 

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