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The government awards contracts to companies with histories of misconduct such as contract fraud and environmental, ethics, and labor violations. In the absence of a centralized federal database listing instances of misconduct, the Project On Government Oversight (POGO) is providing such data. We believe that it will lead to improved contracting decisions and public access to information about how the government spends hundreds of billions of taxpayer money each year on goods and services. Report an instance of misconduct »

Halliburton

Barracuda & Caratinga Leasing v. KBR (Defective Bolts)

Date: 09/28/2011 (Date of Halliburton Announcement)

Misconduct Type: Non-governmental Contract Fraud

Enforcement Agency: Non-Governmental

Contracting Party: Non-Governmental

Court Type: Civil

Amount: $200,000,000

Disposition: Judgment Against Defendant

Synopsis: Halliburton announced that an arbitration panel ordered Halliburton to pay Barracuda & Caratinga Leasing Company (BCLC) $200 million related to a claim BCLC filed against Halliburton’s former subsidiary, KBR. KBR had a contract with BCLC for the development of the Barracuda and Caratinga oil fields off the coast of Brazil. BCLC claimed that certain subsea bolts used in the project were defective. The arbitration panel ruled that KBR was liable for the cost of replacing the bolts. (When KBR was spun off of Halliburton in 2007, Halliburton agreed to pay all the costs and expenses, cash settlements or cash arbitration awards related to the case.)