Originally posted by: dahunan
Haliburton wins no matter what is done.. It was setup that way.. It just grows bigger and bigger and bigger with the increasing frequency of no bid contracts.. etc
And the seeds of that growth were planted back in 1992 by one Richard Cheney.
It was Dick Cheney, as defense secretary in 1992, who spearheaded the movement to privatize most of the military's civil logistics activities. Under the direction of Secretary Cheney, the Pentagon paid $9 million to Halliburton's subsidiary, KBR, to conduct a study to determine whether private companies like itself should handle all of the military's civil logistics. KBR's classified study concluded that greater privatization of logistics was in the government's best interest. Shortly thereafter, on August 3, 1992, Secretary Cheney awarded the first comprehensive LOGCAP contract to KBR. The Washington Post reported "The Pentagon chose [KBR] to carry out the study and subsequently selected the company to implement its own plan." Three years later, in 1995, Halliburton hired Cheney as its CEO.
In 1997, two years after Cheney became CEO of Halliburton, KBR's LOGCAP contract was not renewed and the government alleged the company engaged in fraudulent billing practices. The independent auditing arm of Congress, the GAO, had criticized KBR's performance during America's war in the Balkans. GAO said KBR's cost-overruns in the Balkans inflated the original contract price by 32 percent. After KBR was effectively fired by the Army in 1997, the LOGCAP contract was awarded to Halliburton competitor DynCorp. But, after Cheney became vice president in 2001, DynCorp was fired and KBR was re-awarded the contract.
Today, 90 percent of KBR's work under LOGCAP is being done in Iraq. Over 24,000 Halliburton employees and subcontract workers are employed to carryout LOGCAP in the Iraq-Kuwait region.
Halliburton's revenue from LOGCAP increased from $320 million in the second quarter of 2003 to over $2 billion in the fourth quarter of 2003. As of May 2004, the federal government had spent nearly $5 billion on LOGCAP since KBR became the sole contractor in 2001. The original value of LOGCAP in Iraq was estimated at over $4 billion, but the value of the contract is now over $8 billion and could reach $18 billion. These values can change as war conditions change. The $8 billion figure for Iraq does not include KBR's LOGCAP business in dozens of other countries around the globe, including Guantanimo Bay, Cuba, where it constructed the prisons used to house prisoners from Afghanistan.
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