The United States announced a new civil complaint it filed against Kellogg, Brown & Root Services Inc. (KBR), the Army’s primary contractor for logistical support in Iraq, and a Kuwaiti subcontractor. The complaint accused KBR and subcontractor First Kuwaiti Trading Company of submitting false and inflated claims to the government for services associated with the Army’s Logistics Civil Augmentation Program (LOGCAP) III.
KBR was awarded LOGCAP III in December of 2001. KBR subsequently awarded a subcontract to First Kuwaiti in October of 2003 to supply, transport, and install over 2,000 trailers for house troops in Iraq. According to the allegations, First Kuwaiti knowingly inflated some of its costs and misrepresented the causes of delays associated with its contract. Further, KBR was accused of submitting claims for these costs to the United States, despite knowing that they were improper.
As this complaint was only recently filed, it will take some time for the facts to come out and the case to unfold. Stay tuned for further updates!