Cheney’s Former Firm Could Earn Billions in Iraq
Oh, I know, Cheney has no influence over awarding contracts to Halliburton,
and doesn’t stand to profit from it personally. What a wonderful and bizarre
coincidence then that Halliburton alone stands to earn billions in revenues
from its post-war contracts! How lucky for them. Too bad no other US
companies are going to get a shot at those
contracts.
–C
This article was pulled from the wires of that radical organization:
Associated Press.
————————————–
Cheney’s Former Firm Could Earn Billions in Iraq
By David Pace/Associated Press
WASHINGTON (May 30) - Vice President Dick Cheney’s former company already
has
garnered more than $600 million in military work related to the wars in
Afghanistan and Iraq, and potentially could earn billions more without
having to
compete with other companies.
As the Army’s sole provider of troop support services, Halliburton’s Kellogg
Brown & Root subsidiary has received work orders totaling $529.4 million
related to the two wars under a 10-year contract that has no spending
ceiling.
Rather than put the Iraq work up for bidding, the government has used the
2001 Halliburton contract to place the various work orders in Iraq,
prompting
criticism from some Democrats that Cheney’s former company is receiving
favored
treatment.
“The amount Halliburton could receive in the future is virtually
limitless,” said Rep. Henry Waxman, D-Calif., who disclosed the troop
support work
orders Thursday. “It is simply remarkable that a single company could earn
so much
money from the war in Iraq.”
Halliburton, a Houston-based oilfield-services and construction company,
disputes those characterizations, noting it had to compete to win the
original
contract and that each of its work orders is covered by strict guidelines
and
costs controls.
“U.S. government contracts are awarded, not by politicians, but by
government civil servants, under strict guidelines,” company spokeswoman
Wendy Hall
said. “Government civil servants are well aware of and consistently abide
by
the requirements of the process. Privatizing this work allows the military
to
concentrate on its mission. “
“Any allegation that this contract is set up to encourage unwarranted
spending is unfounded and untrue,” she said. “The vice president has
nothing to do
with the awarding of contracts, the bidding process or task orders.”
Cheney headed Halliburton from 1995 until George W. Bush picked him as his
running mate in July 2000.
The Army Corps of Engineers, using a separate no-bid contract, has awarded
Kellogg Brown & Root $71.3 million in work orders to repair and operate oil
wells in Iraq. That contract has a two-year duration of a spending ceiling
of $7
billion.
Kellogg Brown & Root competed with two other companies in 2001 to win the
logistics contract that makes it the Army’s only private supplier of troop
support services such as housing, amenities and food over the next decade.
The initial logistics contract award carried no value. The Army negotiates
each task order with the company and then verifies the costs as they are
billed.
There is no ceiling on spending, because the contract is designed to provide
rapid troop support wherever and whenever U.S. forces move into action
overseas.
Under similar contracts, the Army paid Kellogg Brown & Root $1.2 billion
from
1992 through 1999 to support U.S. troops, mainly in the Balkans. An
extension
of that contract from 1999 through 2004 is projected to cost $1.8 billion.
Since March 2002, the Army has issued 24 task orders totaling $425.5 million
under the contract for work related to Operation Iraqi Freedom, according to
Army records provided Waxman. Eleven more work orders totaling $103.9
million
have been issued under the same contract for work related to the war in
Afghanistan.
Dan Carlson, spokesman for the Army Field Support Command, said the Army has
paid $42 million to Kellogg Brown & Root through April for work under the
contract related to Iraq and Afghanistan.
Carlson said the more than $500 million in work orders under the logistics
contract represents the Army’s best estimate of the final costs of the
projects.
He said the company must justify its spending to Army contract officials
before it can be paid.
“Costs are verified as they are billed,” he said. “We may spend more or
we
may spend less.”
Much of a $60 million obligation to Brown & Root to provide logistical
supply
line services and locations in Turkey was never spent because the Turkish
government refused to allow U.S. troops to launch an invasion of Iraq from
Turkey, Carlson said.

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