Logistics Contract to Be Open for Bidding
By Griff Witte, Washington Post
The Army is discontinuing a controversial multibillion-dollar deal with oil services giant Halliburton Company to provide logistical support to U.S. troops worldwide, a decision that could cut deeply into the firm's dominance of government contracting in Iraq.
The choice comes after several years of attacks from critics who saw the contract as a symbol of politically connected corporations profiteering on the war.
Under the deal, Halliburton had exclusive rights to provide the military with a wide range of work that included keeping soldiers around the world fed, sheltered and in communication with friends and family back home. Government audits turned up more than $1 billion in questionable costs. Whistle-blowers told how the company charged $45 per case of soda, double-billed on meals and allowed troops to bathe in contaminated water.
Halliburton officials have denied the allegations strenuously. Army officials yesterday defended the company's performance but also acknowledged that reliance on a single contractor left the government vulnerable.
The heavy involvement of U.S. contractors in Iraq has been one of the defining features of the American presence there, with private companies called on for duties as varied as guarding supply convoys and analyzing intelligence.
No contractor has received more money as a result of the invasion of Iraq than Halliburton, whose former chief executive is Vice President Cheney.
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