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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 »

KBR

Overpricing Fuel

Date: 12/11/2003 (Date of DCAA Report)

Misconduct Type: Cost/Labor Mischarge

Enforcement Agency: Defense – Army

Contracting Party: Defense - Army

Court Type: Administrative

Amount: $10,100,000

Disposition: Settlement

Synopsis: In December 2003, the Defense Contract Audit Agency (DCAA) announced that Halliburton's Kellogg, Brown and Root subsidiary may have overpriced fuel imported to Iraq from Kuwait by as much as $61 million. Defense Department officials, however, granted Halliburton a waiver eliminating their responsibility to provide any cost and pricing data from its Kuwaiti subcontractor and declared the gasoline prices “fair and reasonable.” By early 2006, the DCAA had found $279 million in questioned or unsupported costs under the Restore Iraqi Oil (RIO) contract, but, according to news accounts at that time, the Army chose to reimburse Halliburton for all but $10.1 million of those contested costs.