The Mudcat Café TM
Thread #84906   Message #1879837
Posted By: Old Guy
08-Nov-06 - 10:28 PM
Thread Name: BS: Halliburton owns the U.S. government
Subject: RE: BS: Halliburton owns the U.S. government
Bobert:

Have you studied up on the history of LOGCAPs yet?

...Halliburton discovered the benefits of government patronage when its support for U.S. President Lyndon Johnson resulted in several contracts, such as constructing military bases during the Vietnam War. In 1991, after the Persian Gulf War, then-Defense Secretary Cheney commissioned Brown & Root to conduct a study on the benefits of military outsourcing, paying the company an additional $5 million to update the report months later. In 1992, Brown & Root was awarded the U.S. Army's first Logistics Civil Augmentation Program contract, an omnibus contract that allows the Army to call on KBR for support in all of its field operations, including combat, peacekeeping and humanitarian assistance. LOGCAP is a "cost plus award fee" contract, meaning that KBR is paid a fee above the cost of the service ranging from two percent to five percent, depending on performance. When the Army needs a service performed, it issues a "task order," a sort of minicontract that outlines the tasks the contractor needs to perform.

When the United States joined NATO forces in the Balkans in 1995, KBR was deployed to the Balkans. KBR lost a second five-year LOGCAP contract—awarded to DynCorp in 1997— after the General Accounting Office reported in February 1997 that KBR had overrun its estimated costs in the Balkans by 32 percent (some of which was attributed to an increase in the Army's demands). Despite these findings, KBR was awarded a new contract for Balkan logistical support that ran through May 1999. In September 2000, the GAO released another report claiming the Army had not reined in contractor costs, placing the total cost of the Balkan contract at $2.2 billion...

Excerpted from http://www.publicintegrity.org/wow/bio.aspx?act=pro&ddlC=31