Apr. 7, 2005 – Kellogg Brown and Root (KBR), a subsidiary of oil services company Halliburton and the biggest US military contractor in Iraq, has ended a 14-month-long dispute with the US Army over dining services provided to American troops. Under a deal disclosed Tuesday, the US Army Field Support Command will pay KBR $1.18 billion for costs billed for dining facilities' services in Kuwait and Iraq during the initial months of the war.
In exchange, the Army will keep $55.1 million of about $200 million in payments to KBR that had been suspended while questions over the companyâ€™s billing practices were being resolved. Halliburton executives said they do not expect the deal to harm the companyâ€™s financial standing.
The company, formerly run by Vice President Dick Cheney, has yet to resolve additional disputes with the Army over the delivery of fuel and laundry services in Iraq. Several government departments are also investigating allegations that Halliburton overcharged the US to supply fuel to Iraqis.