The shock of it all. Pffft. KBR actually contracted security services in Iraq, because the Army and military was too busy with other things….. like fighting a massive insurgency in Iraq. The DoJ witch hunt continues….. –Matt
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KBR Charged With FCA Violation for Unauthorized Security Guards
By Joe Palazzolo
April 1, 2010
Defense contractor Kellogg Brown & Root Services billed the federal government for unauthorized private security guards in Iraq, the Justice Department alleged in a lawsuit.
The complaint, filed Thursday in federal district court in Washington, said 33 KBR subcontractors, as well as the company itself, used armed guards from 2003 to 2006 without approval from the Army. The company also failed to ensure that the guards were registered with the Iraqi Ministry of the Interior, as required, the department said.
Justice Department lawyers said in the complaint that the amount of taxpayer dollars lost to the alleged fraud would be determined at trial.
KBR was under contract to provide logistical support for military operations, including food services, transportation, laundry and mail. KBR and it subcontractors were required to use military protection, according to the complaint.
In addition to allegedly submitting bills with “impermissible costs” in violation of the False Claims Act, KBR is accused of flouting subcontract terms requiring travel only in military convoys, the department said.
KBR managers expressed concerns that the Army would disallow costs for the private security contractors, but nonetheless charged the federal government for the unauthorized services, the complaint said. The company hired contractors Triple Canopy, Omega Risk Solutions, and Al Dhahir to provide security. KBR also used four of its own employees as armed security for company executives, the complaint said.
“Defense contractors cannot ignore their contractual obligations to the military and pass along improper charges to the United States,” said Tony West, Assistant Attorney General for the Civil Division, in a statement.
UPDATED:
In statement, the company strongly denied any violations of the law, noting that it filed claims of its own against the Army in 2008 to recover funds expended on security costs. The dispute is pending before the Armed Services Board of Contract Appeals.
“The Army breached the contract by repeatedly failing to provide the necessary force protection and, in fact, frequently left KBR, its employees and its subcontractors unprotected,” KBR said in the statement. “The absence of security provided by the U.S. Army made it more difficult and costly for KBR to fulfill its obligations.”
The complaint is embedded below.
Story here.