Halliburton admits faulty pricing

[lozina]

CNN

WASHINGTON (AP) -- Pentagon auditors found a Halliburton Co. subsidiary gave faulty cost estimates on a $2.7 billion contract to serve American troops in Iraq and Kuwait, and company officials acknowledged making mistakes, Defense Department documents show.

The estimate problems included a failure to tell contract managers that Halliburton had terminated two subcontracts for feeding troops, which affected costs on $1 billion worth of that work, the Defense Contract Audit Agency found.

Halliburton also did not tell contract managers it had already awarded subcontracts worth $141.5 million for work it said would cost $208.8 million, the auditors found.

Yikes- where'd that $1 billion go to..

 

[Corn]

That article doesn't say that a billion dollars disappeared. It actually doesn't say how much of the $1 billion worth of work was actually over billed, only that it affects "costs" on a $1 billion portion of the $2.7 billion total contract.

Even still, a speedy refund is in order........hopefully with a nice penalty tacked on to boot.

 

[DealMonkey]

Supports my theory that we need more and better competition for military contracts.