US army 'to axe Halliburton deal'.
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| Tue, 09-07-2004 - 10:31am |
About time. Glad to hear this.
The Pentagon plans to end a contract given to Halliburton to provide US troops in Iraq with logistical support, the Wall Street Journal reports.
http://news.bbc.co.uk/1/hi/business/3633750.stm
The army will put the work out to bid, the newspaper says, quoting an army memorandum which estimates the contract to be worth $13bn (£7.3bn).
Halliburton has been accused of overcharging since it was handed the no-bid contract last year.
US Vice-President Dick Cheney headed the firm until he took office in 2001.
He has, however, denied that this has led to preferential treatment for the firm.
Move 'expected'
US defence officials say the intention to break up the contract with Halliburton was not intended to penalise its Kellogg Brown & Root (KBR) unit which handles the Iraq operation, the Wall Street Journal reports.
KBR provides troops in Kuwait and Iraq with housing, dining halls, transportation and laundry.
Rather, the intention was to find greater efficiency by parcelling the work out to a greater number of firms.
Halliburton spokeswoman Wendy Hall told the newspaper that the move was expected but that KBR would consider bidding for parts of the work.
In the memo dated 25 August, the newspaper says, the army's chief of procurement policy, Tina Balard, directed top officials to "immediately begin the transition to competitively awarded sustainment contracts for support of US military forces in Iraq".
The memo also addresses the army's increasing frustration with efforts to devise a final estimated cost of the work, the Journal continues.
One option considered was for the army to come up with its own estimation of costs.
The newspaper pointed out that such a move could make it more difficult for KBR to stay within estimated costs which would make it harder for it to qualify for its 2% bonus.
Ms Hall told the newspaper that this could have financial implications for the firm as "the award fee is where you make your money".
U.S. Army plans to split Iraq work
Plans to break up Halliburton's contract, seek bids -report
The U.S. Army plans to break up Halliburton's multibillion dollar logistics support contract in Iraq and put out the work for competitive bidding, according to a report Tuesday.
Halliburton (HAL: news, chart, profile), which is under investigation for its accounting and billing practices in providing support services for U.S. troops occupying Iraq, said it expected the move and might bid on some of the work, according to a story in the online edition of Tuesday's Wall Street Journal.
Houston-based Halliburton's work in Iraq and Kuwait has become a political issue because Dick Cheney was its CEO from 1995 until 2000, when he became George W. Bush's vice president.
More.......... http://cbs.marketwatch.com/news/story.asp?guid=%7B52AB47AD-ECA7-40B9-8FC5-BFD2DB00FC8C%7D&siteid=google&dist=google


Gettingahandle
Ignorance is Nature's most abundant fuel for decision making.
"Nasty, suspicious mind at work here.............