The Pentagon is giving Halliburton $9.4 million in bonuses for it’s fine work in Kuwait and Afghanistan. Only in America.
U.S. defense contractor Halliburton, under scrutiny for its contracts in Iraq (news – web sites), has been given bonuses for some of its work supporting the U.S. military in Kuwait and Afghanistan (news – web sites), the Army said on Thursday.
Much of Halliburton’s work for the U.S. military is on a cost-plus basis, which means the company can earn up to 2 percent extra depending on their performance. An Army spokesman said KBR had been awarded $9.4 million in bonus payments from its work in Kuwait and Afghanistan.
Overall, KBR has earned $7.2 billion under a massive 2001 logistics contract with the U.S. military and has obligations to earn more than $10 billion under that deal. It has separate deals with the government for reconstruction work in Iraq.
Bonuses are awarded based on, among other factors, how efficient and responsive the company is to requests from the Army, she said. The award fee is an indicator of how the Army views KBR’s performance in the field.
KBR’s logistics deal with the Army has been fraught with problems from the outset in Iraq, with allegations by auditors that KBR overcharged for some of its work and criticism of the company’s accounting procedures.
Critics, especially from the Democratic Party, have accused the Pentagon (news – web sites) of giving special treatment to KBR because of its former ties to Vice President Dick Cheney (news – web sites), who ran the company from 1995-2000.
Several U.S. government departments have launched investigations into Halliburton’s work in Iraq, including a probe into whether it overcharged to supply fuel to Iraqi civilians. The company has said its prices were fair and has denied any wrongdoing.