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Date: 12/11/2003 (Date of DCAA Report)
Misconduct Type: Cost/Labor Mischarge
Enforcement Agency: Defense – Army
Contracting Party: Defense - Army
Court Type: Administrative
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.