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KBR Inc. was selected for a no-bid contract worth as much as $568 million through 2011 for military support services in Iraq, the Army said.
The Army announced its decision yesterday only hours after the Justice Department said it will pursue a lawsuit accusing the Houston-based company of taking kickbacks from two subcontractors on Iraq-related work. The Army also awarded the work to KBR over objections from members of Congress, who have pushed the Pentagon to seek bids for further logistics contracts.
The Justice Department said the government will join a suit filed by whistleblowers alleging that two freight-forwarding firms gave KBR transportation department employees kickbacks in the form of meals, drinks, sports tickets and golf outings.
Obama's Pentagon Gives No-Bid Contract To KBR
The Army announced its decision yesterday
...
The Army didn’t put this work out for bids because U.S. commanders in Iraq advised against it, saying that enlisting a new company would be too disruptive as the U.S withdraws, Army program director Lee Thompson said in an interview before the Justice Department action was announced.
The Army has canceled a competition for new contracts to provide support services in Iraq. Instead, it will use the existing contract with KBR until U.S. forces leave Iraq in December 2011. That sole-source contract, known as LOG-CAP Three, has been controversial because of cost overruns and management problems. The Army's announcement came hours after the Justice Department joined a false claims lawsuit against KBR, alleging kickbacks from two subcontractors, according to GovExec.
Originally posted by Ferris.Bueller.II
The Army announced its decision yesterday only hours after the Justice Department said it will pursue a lawsuit accusing the Houston-based company of taking kickbacks from two subcontractors on Iraq-related work. The Army also awarded the work to KBR over objections from members of Congress, who have pushed the Pentagon to seek bids for further logistics contracts.
The Justice Department said the government will join a suit filed by whistleblowers alleging that two freight-forwarding firms gave KBR transportation department employees kickbacks in the form of meals, drinks, sports tickets and golf outings.
Originally posted by Benevolent Heretic
The ARMY gave this to KBR. It was the ARMY'S decision.
Obama is CinC of the armed forces, but he's not king of the Army. He doesn't get to make ALL the decisions.