A memo from from the Pentagons chief financial watchdog the Defense Contract Audit Agency the agency questioned Halliburton "ability to consistently produce well-supported proposals that are acceptable as a basis for negotiation of fair and reasonable prices." (6 ).
The large DOD contractor has been linked to "the vast majority" of suspected combat-zone fraud cases in Iraq and Afghanistan, plus the issue of the $13 billion in "questioned" or "unsupported" costs according to a Pentagon audit. Director of the Defense Contract Audit Agency April G. Stephenson said "I don't think we're aware of a program, contract or contractor that has had this number of suspensions or referrals," (7 ).
An audit reported on 2009, done by the DOD ordered KBR to reduce its work force in Iraq or face nearly 200 million in penalties for keeping too many on the Payroll. Among KBR activates in Iraq are handling mail, laundry, housing and meals plus other activities (8 ).
According to an Inspector General report on Kellogg Brown and Root (KBR) (separated from Halliburton April 2007) contract that went from 2004 to 2008 and had the general mission of rebuilding Iraq's oil infrastructure in southern Iraq was marked by multiple changes, cost overruns, failure to meet schedules and lack of oversight (9 ).
When KBR was a subsidiary of Halliburton they (KBR) overcharged the pentagon 108 million dollars for delivering gasoline to Iraq (10 ).
KBR also exploited federal rules to hide its contract performance. They routinely marked all information it gave the government as proprietary, no matter if it was or not. The government promises not to release any information if it's labeled proprietary (11 ).
Halliburton repeatedly overcharge the government for work done to restore Iraq's oil fields, a few of the things that lead to these overcharges were for billing for work it actually didn't do, and paying suppliers more than they were owed. said Rep. Henry A. Waxman (D-Calif.) "Halliburton was given a blank check by the Bush Administration and the Republican Congress did nothing to stop the hemorrhaging of taxpayer dollars,"(12 ).
Cost more than money
A Pentagon source says KBR are doing faulty, shoddy electrical work and inadequate inspections of electrical work in Afghanistan and Iraq. It is estimated by the pentagon that at least 18 troops have been electrocuted in Iraq since 2003 many are due to faulty wiring and improper grounding (13 ).
Sen Byron Dorgan of North Dakota (D) said "Soldiers have died. Someone needs to be accountable for that,". Both senators Robert Casey of Pennsylvania and Sen Byron Dorgan said a mother of one of the soldiers was told by the Army, who's son killed by electrocution it was not an accident but "negligent homicide" by contractor KBR and two of its supervisors (14 ).