KBR And Its Tricksie Dust
Yesterday I posted on KBR's interesting billing and collection methods for "work" done in Iraq. It appears from this article in today's Washington Post that KBR's work for the Pentagon in this country after Hurricane Katrina was of the same quality:
Efforts by defense contractor KBR to repair hurricane-damaged Navy facilities were deemed shoddy and substandard, and one technical adviser alleged that the federal government "certainly paid twice" for many KBR projects because of "design and workmanship deficiencies," the Pentagon's inspector general reported in an audit released yesterday. ...
The inspector general reported that its audit of KBR's work found:
· The Navy entered into an illegal "cost-plus-percentage-of-cost" contract with the company. Higher costs meant more profit for KBR, which rewarded the company for "inefficiency and non-economical performance," the report said.
· KBR paid $4.1 million for services and meals that should have cost $1.7 million, and it awarded sole-source or limited-competition subcontracts that overpaid hourly rates to roofers.
· The company was paid nearly all contract amounts despite "marginal-to-average performance."
The inspector general recommended that the Navy try to recoup about $8.4 million in "excessive" equipment lease payments and material profits, and another $1.4 million for more than 110,000 meals that were paid for and thrown away over a 34-day period.
Obviously the over-billing was made easier by the "cost-plus" nature of the contract which provides no incentive for efficiency or quality of work performed, but provides plenty of incentive for loading on the charges, whether the charges are reasonable or necessary. The fact that such an unlawful contract was entered into by the Pentagon certainly gives evidence of the remarkably cozy relationship between the current administration and the contractor.
What is especially galling, however, is that even with this latest evidence of government-gouging by KBR, that company is still being awarded contracts. As I noted yesterday, the Pentagon recently awarded KBR part of a 10-year, $150 billion contract in Iraq.
All in a day's work, I guess.
Efforts by defense contractor KBR to repair hurricane-damaged Navy facilities were deemed shoddy and substandard, and one technical adviser alleged that the federal government "certainly paid twice" for many KBR projects because of "design and workmanship deficiencies," the Pentagon's inspector general reported in an audit released yesterday. ...
The inspector general reported that its audit of KBR's work found:
· The Navy entered into an illegal "cost-plus-percentage-of-cost" contract with the company. Higher costs meant more profit for KBR, which rewarded the company for "inefficiency and non-economical performance," the report said.
· KBR paid $4.1 million for services and meals that should have cost $1.7 million, and it awarded sole-source or limited-competition subcontracts that overpaid hourly rates to roofers.
· The company was paid nearly all contract amounts despite "marginal-to-average performance."
The inspector general recommended that the Navy try to recoup about $8.4 million in "excessive" equipment lease payments and material profits, and another $1.4 million for more than 110,000 meals that were paid for and thrown away over a 34-day period.
Obviously the over-billing was made easier by the "cost-plus" nature of the contract which provides no incentive for efficiency or quality of work performed, but provides plenty of incentive for loading on the charges, whether the charges are reasonable or necessary. The fact that such an unlawful contract was entered into by the Pentagon certainly gives evidence of the remarkably cozy relationship between the current administration and the contractor.
What is especially galling, however, is that even with this latest evidence of government-gouging by KBR, that company is still being awarded contracts. As I noted yesterday, the Pentagon recently awarded KBR part of a 10-year, $150 billion contract in Iraq.
All in a day's work, I guess.
Labels: Corruption, Government Contractors
posted by Diane at 3:49 AM
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