Sunday, June 22, 2008

KBR, equal opportunity corruption

By Libby

They don't just do it in foreign countries. They screw us here too. For instance on repairs to a Naval base on the Gulf coast.
The inspector general reported that its audit of KBR's work found:

· The Navy entered into an illegal "cost-plus-percentage-of-cost" contract with the company. Higher costs meant more profit for KBR, which rewarded the company for "inefficiency and non-economical performance," the report said.

· KBR paid $4.1 million for services and meals that should have cost $1.7 million, and it awarded sole-source or limited-competition subcontracts that overpaid hourly rates to roofers.

· The company was paid nearly all contract amounts despite "marginal-to-average performance."

The inspector general recommended that the Navy try to recoup about $8.4 million in "excessive" equipment lease payments and material profits, and another $1.4 million for more than 110,000 meals that were paid for and thrown away over a 34-day period.
You can be pretty sure that won't happen. More likely they'll issue a statement saying that the planned incompetence wasn't all that bad and then shortly thereafter announce another multi-million dollar contract.

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