View Full Version : Reuters: Army To End Halliburton Deal

Jul 12th, 2006, 05:44 PM
Paper: Army to end Halliburton deal

Wednesday, July 12, 2006; Posted: 11:30 a.m. EDT (15:30 GMT)

WASHINGTON (Reuters) -- The Army will discontinue its multi-billion dollar contract with oil services giant Halliburton Co. to provide logistical support to U.S. troops worldwide, The Washington Post reported Wednesday.

Halliburton, formerly run by Vice President Dick Cheney, has drawn scrutiny for its work in Iraq from auditors, congressional Democrats and the Justice Department, which is investigating potential overcharges for fuel, dining and laundry services.

Texas-based Halliburton is the world's second-largest oil services company and the U.S. military's biggest contractor in Iraq. The logistical support is performed by Halliburton engineering and construction unit Kellogg Brown & Root. Last year, the Army paid the company more than $7 billion under the contract, the Post said.

Army officials defended the company's performance but said Pentagon leaders decided multiple contractors would give them better prices, more accountability and greater protection if a one contractor fails to perform, the newspaper said.

Halliburton maintains that its billing disputes with Defense Department auditors have been resolved and that its work has received rave reviews from the military, the Post reported.

The Pentagon's decision on Halliburton comes as the U.S. contribution to Iraq's reconstruction begins to wane, reducing opportunities for U.S. companies after nearly four years of massive payouts to the private sector, the newspaper said.

According to the report, the Pentagon plans to split the Iraq work among three companies to be chosen this fall and Halliburton would be eligible to make a bid.

A fourth firm would be hired to help monitor the performance of the three contractors selected, the newspaper said.

Rep. Henry Waxman of California, the top Democrat on the House Government Reform Committee and a frequent Halliburton critic, welcomed the move away from the exclusive contract with Halliburton as a good first step, the Post said.

"When you have a single contractor, that company has the government over a barrel," Waxman said. "One needs multiple contractors in order to have real price competition. Real competition saves the taxpayer money."

Jul 12th, 2006, 05:56 PM

Jul 12th, 2006, 06:22 PM
Haliburton has been doing business with the U.S.
govt. for over 60 years.

Over 100 Haliburton employees have been killed
in the two Gulf Wars. Not exactly easy cushy
jobs they take on.

Clinton and Carter both gave Haliburton no bid
contracts for military work, as well as both Bush
presidents, as well as Johnson and JFK. Haliburton
is one of only a few companies that does what it
does in the field, dangerous work most of the time
in dangerous places. Nowadays, there are more
companies to do that, but, still not very many.

Kosovo/Bosnia, you will find Clinton approved no
bid contracts for Haliburton.

Cheney's involvement with Haliburton was never
a secret. It was right on the table in both elections.

If you look at the Board of Directors for Haliburton
and any other military related corporation, or big
think tanks, you'll find the names of famous and
not so famous former Cabinet members and former
military higher ups. Of both parties. These guys make
millions being 'former' Cabinet members, former
CIA agents, former Congressional assistants, former
Senators, former Generals, etc. They become
millionaires instantly w/these types of jobs.

Soros and Cheney had a lot more in common than
either would like to mention, in terms of business
associations. Bechtel, look at who owns stock in
that, or who sits on the BoD, ditto for Haliburton,
and Fluor.

I have no problem with the Army looking for more
competitive bidding at any level. The entire federal
govt. should look for more competitive bidding,
as well as with employees. I'm all for that. In Iraq
and in Iowa. We should always be looking to cut
back on waste, and that includes Iraq, as well as
the Dept. of Education, Social Security, Fed. employees
benefits, etc. I'm in agreement with the principle
of the movement.

Haliburton subsidaries will likely end up still being
the biggest contractors in such related fields. They
do it better, and know how to get it done.