the [alternate] patriot


 

Monday, April 14, 2003

Spoils of war

 
The Bush Administrationis wasting no time passing out lucrative contracts to GOP supporters. What about Tony Blair supporters? Sorry, it's Bush's war. Bidding was restricted to a few companies.
The administration has said that time constraints and the need for security clearances led it to restrict the bidding. The companies selected are among the most politically connected in the country and include the Bechtel Group, which has emerged as one of the top two contenders, the Louis Berger Group, Fluor and the Parsons Corporation. .... --NY Times 4-14-03

And what about the Haliburton subsidiary, Kellogg, Brown & Root (now known as KBR)? It has received multimillion dollar contracts from the Pentago without competitive bidding at all.

Two Democratic Congressmen, Reps.Henry Waxman of California and John Dingell of Michigan, asked the General Accounting Office, the investigative arm of Congress, to examine the bidding process at the United States Agency for International Development, which will award at least $1.6 billion in contracts to rebuild Iraq, and at the Pentagon, which will award tens of millions of dollars of contracts.

After noting problems with recent Brown & Root contracts — including questionable cost controls for work in the Balkans and $2 million in fines to resolve claims of fraud for work at a military base — the lawmakers asked why the administration had given it "a string of lucrative contracts over the last two years." (NY Times)


"Ties between the vice president and Halliburton have raised concerns about whether the company has received favorable treatment from the administration," the two lawmakers said in the letter.
And according to an article in the Minneapolis- St. Paul StarTribune KBR has a poor track record on contracts awarded without competitive bidding, noting these problems:
  • A GAO finding in 1997 that the company billed the Army for questionable expenses for work in the Balkans, including charges of $85.98 per sheet of plywood that cost $14.06.
  • A year 2000 follow-up report on the Balkans work that found inflated costs, including charges for cleaning some offices up to four times a day.
  • $2 million in fines paid in February 2002, to resolve fraud claims involving work at Fort Ord, Calif.


Haliburton employed Vice Pres. Richard Cheney as chief executive officer from 1995 to 2000 and still pays him deferred compensation for his services during that period.



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