The Ugly End to the Largest Service Contract in U.S HistoryTweet
May 13, 2013
Dealings between KBR and the Army have gotten “very nasty” as the two try to close out the largest government services contract in U.S. history, according to an article in Federal Times.
The dispute is over whether the remaining work in the $38 billion Logistics Civil Augmentation Program (LOGCAP) III should be completed on a fixed price basis, which the Army wants, or a cost-reimbursable basis, which is what KBR wants. The LOGCAP III contract provides everything from food to housing for the U.S. military in Iraq.
From the article:
By its own estimates, KBR says the closeout work on the contract will cost more than $500 million and take up to 13 years. The final decision on the closeout, as well as years of still-unresolved audits, could cost or save the government hundreds of million of dollars in additional costs.
The dispute has led to a badly damaged relationship between the Army and one of its largest contractors. Army officials sent KBR an ultimatum on the fixed-price issue, and KBR has responded with a lawsuit.
Read more at Federal Times.
Andre Francisco is the Online Producer for the Project On Government Oversight.
Topics: Contract Oversight
Related Content: Defense
Authors: Andre Francisco
- June 14, 2016
- May 13, 2016
- April 27, 2016
- April 15, 2016
- April 12, 2016
- April 7, 2016
- February 11, 2016
- January 25, 2016
Browse POGOBlog by Topic
POGO on Facebook
Podcast; Social Media, Internet Provides Opportunities, Challenges for Lawmakers
The Congressional Management Foundation offers the Gold Mouse Awards annually to members of Congress who make the most of the opportunity the digital world offers them. POGO spoke with members of Rep. Mike Honda's communications team about their award.