Halliburton to be Docked 15% for Lack of Accounting

From Holden:

Normally, when a defense contractor can’t account for how it is spending your money the Pentagon will only pay 85% of contracted costs. Halliburton’s ties to the Bush administration has enabled the company to receive two exemptions from this rule, but no more:

Government contractors normally cannot be paid more than 85 percent of their invoices until they fully account for their costs. Twice this year, the Army set this rule aside for Halliburton as the company cataloged its costs and explained how it was billing the government. The most recent reprieve expired on Sunday, and on Monday company officials said that the Army had given them assurances they could have another extension.

Today, however, the company issued a press release reversing that, saying that the Army would not grant them the reprieve after all.

“Halliburton announced that it was advised this morning that the Army Materiel Command has refused to grant an extension” of the 15 percent clause, the statement said.

Company officials said they believed they had the extension “based on clear oral assurances from senior Pentagon representatives.”


The waivers granted to Halliburton have annoyed several members of Congress, who say the company has enjoyed undue privileges because of its former ties to Vice President Dick Cheney. Mr. Cheney led the company from 1995 until he became the Republican vice presidential candidate in 2000.

Gee, I wonder who those “senior Pentagon representatives” could be?