The Arlington-based Kellogg Brown & Root, a subsidiary of Halliburton, was awarded a $33.6 million contract Sept. 30 for emergency reconstruction of military bases in the wake of Hurricane Katrina, RAW STORY has learned.
The Hallibuton subsidiary has come under heavy fire for mismanaging contracts in Iraq. The firm charged U.S. forces $2.64 a gallon for gasoline they purchased for $2.60, and were criticized by Pentagon auditors for billing troops' meals on inflated projections rather than actual meals served.
The contract was announced Tuesday evening.
The latest $33.6 million contract was awarded after considering 59 bids, and brings KBR's total Katrina deals to $66.1 million. KBR's contracts were awarded under an existing $500 million umbrella deal which was also tapped to build prison facilities at Guantanamo Bay.
President Bush's former FEMA director Joe Allbaugh, who ran the agency from 2001-2003, is now lobbying for Halliburton in Washington.
In a news article Sept. 12, the Wall Street Journal asserted: "The Bush administration is importing many of the contracting practices blamed for spending abuses in Iraq as it begins the largest and costliest rebuilding effort in U.S. history."
After several such stories, Bush announced that contracts would be reopened to competitive bidding.
Vice President Dick Cheney was Halliburton's chief executive for five years before quitting to join Bush's ticket in 2000. Cheney continues to hold Halliburton stock options and receives about $200,000 a year in deferred compensation from the company.
Supporters note that because of its size and reach, Halliburton is one of few companies qualified for the reconstruction work. They add that Cheney's current Halliburton income flows from from retirement accounts he has either already paid into or from deferred compensation that he is entitled to receive as a former employee.
Kellogg Brown & Root Services, Arlington, Va., was awarded on Sept. 30, 2005, $33,565,296 for modification P0009 to Task Order 0017 under a cost reimbursement, indefinite- delivery/indefinite-quantity emergency construction capabilities contract for Hurricane Katrina stabilization and recovery at Naval Air Station (NAS) Pascagoula, NAS Gulfport, Stennis Space Center and other Navy installations in the Southeast Region. The work to be performed provides for re-construction, re-roofing of most buildings, barracks, debris removal from the entire base, water mitigation, mold mitigation, interior and exterior repairs to most buildings, waste treatment plants, and all incidental related work. Award of this modification brings the total task order amount to $61,340,466. Work will be performed in the areas noted above, and is expected to be completed by September 2007. Contract funds will expire at the end of the current fiscal year. The basic contract was competitively negotiated with 59 offers solicited, three proposals received and award made on July 26, 2004. The total contract amount is not to exceed $500,000,000, which includes the base period and four option years. The Naval Facilities Engineering Command, Southern Division, North Charleston, S.C., is the contracting activity (N62470-04-D-4017).
Originally published on Wednesday October 12, 2005.