Halliburton Contracts in Iraq: The Struggle to Manage Costs

WASHINGTON, Dec. 28 — The Qarmat Ali water treatment plant in southern Iraq is crucial to keeping the oil flowing from the region's petroleum-rich fields. So when American engineers found the antiquated plant barely operating earlier this year, there was no question that repairing it was important to the rebuilding of Iraq. Setting the price for the repairs was another matter.

In July, the Halliburton Company estimated that the overhaul would cost $75.7 million, according to confidential documents that the company submitted to the Army Corps of Engineers. But in early September, the Bush administration asked Congress for $125 million to do the job — a 40 percent price increase in just six weeks.

The initial price was based on "drive-by estimating," said Richard V. Dowling, a spokesman for the corps, which oversees the contract. The second was a result of a more complete assessment. "The best I can lamely fall back on is to say that estimates change," said Mr. Dowling, who is based in Baghdad. "This is not business as usual."

(snip)

The absence of competition in the selection of KBR for Iraqi oil work was meant to be remedied shortly after the war ended. "Everyone realized the selection of KBR was going to look bad, so the idea was to compete it out as quickly as possible," said another task force member.

But those competitively bid contracts have yet to be awarded, and the amount of Halliburton's work in Iraq has grown steadily.

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http://www.nytimes.com/2003/12/29/international/middleeast/29CONT.html?hp

The US pays a gas-tanker driver a half-million a year throrgh Kellog, Brown and Root and all Hallibruton has to report is that it was a "drive-by" obversation to the Pentagon when they're there and can observe for themselves????

Oh, gimmie a Passport so I can suck up that momey too....

...you know...the Iraq that we didn't destroy...the Iraq that was "neglected" by Saddam Hussein...well, I kinda' get sick to my stomach...thinking of what could have been done for our own country...back in the good ole' USA.

But, remember, when George W. Bush said during the 2000 campaign, "I don't believe in nation building."? Well, he was right! He just doesn't believe in nation building at home...only overseas per the PNAC agenda.

:eyes: