Halliburton lands $72 million in bonuses

MSNBC.com

Halliburton lands $72 million in bonuses
Army awards firm for logistics work; no decision on dining services
Reuters

WASHINGTON - The U.S. Army said on Tuesday it had awarded $72 million in bonuses to Halliburton Co. for logistics work in Iraq but had not decided whether to give the Texas company bonuses for disputed dining services to troops.

Army Field Support Command in Rock Island, Illinois, said in a statement it had given Halliburton unit Kellogg Brown & Root ratings from "excellent" to "very good" for six task orders for work supporting U.S. troops in Iraq.

The Army said its Award Fee Board in Iraq had met in March and had agreed to pay KBR bonuses for work it did in support of U.S. forces there.

But it said dining facility costs questioned by auditors from the Defense Contract Audit Agency had not yet been considered by the military's Award Fee Board.

The Army said it could not immediately provide more details on when the dining fee bonuses would be resolved.


Much of Halliburton's work for the U.S. military, ranging from building bases to delivering mail, is on a cost-plus basis, which means the company can earn up to 2 percent extra depending on its performance.

Bonuses are awarded based on, among other factors, how efficient and responsible the company is to requests from the Army and is an indicator of how the Army views KBR's performance in the field.

KBR's logistics deal with the U.S. military has been in the spotlight from the outset in Iraq, with allegations by auditors that they overcharged for some work, including dining services.

In addition, investigators are looking into whether the Texas-based firm charged too much to supply fuel to Iraqi civilians, a claim the firm says is not justified.

Halliburton, which was run by Vice President Dick Cheney until he joined the 2000 race for the White House, has earned more than $7 billion under its 2001 logistics contract with the U.S. military.