The U.S. Department of Justice is suing Houston-based KBR and Kuwaiti subcontractor for false claims on contracts.
News 92 FM’s John Brewer has the details:
The government’s complaint comes from the Bed Down Mission, a push to replace the tents used to house soldiers with trailers.
KBR used a domestic subcontractor First Kuwaiti to supply, transport and install more than 2,000 trailers for about $80 million dollars. The government alleges First Kuwaiti presented two claims to KBR saying the government-caused delays in providing military escorts for convoys into Iraq entitling the company to an increase in the contract price. KBR agreed to pay First Kuwaiti an additional $48.8 million dollars and passed that cost on to the United States. The government’s complaint alleges First Kuwaiti knowingly inflated its crane and truck costs and misrepresented the cause of its delays.
The complaint further says KBR charged these costs to the U-S knowing they were inflated. The United States DOJ says they’ve paid the Houston based KBR tens of billions of dollars for logistical support services since awarding them the contract.
Get Breaking News On Your Phone…Text “News” to 80185!
For more Local, Sports, Traffic and Breaking News, LIKE us on Facebook below!
Government Sues Local Company For Bad Contracts was originally published on news92fm.com
