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National Briefing

Washington, D.c.

Pentagon warns KBR about costs

November 02, 2009|Times Wire Reports

Pentagon auditors are warning the Army's primary support contractor in Iraq -- responsible for mail, laundry, housing, meals and other duties -- to cut its workforce there or face nearly $200 million in penalties for keeping thousands too many on the payroll.

According to an internal Defense Department audit, Houston-based KBR Inc. has increased employee levels while U.S. troops steadily leave the country after more than six years of war. As a result, the U.S. is paying far more in labor costs in Iraq than it should.

The Oct. 26 audit by the Defense Contract Audit Agency was obtained by the Associated Press.

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