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OVERSEAS INTEL

Houston, Texas — November 15, 2012 — Kellogg, Brown, and Root announced today that the United States has voluntarily dismissed its False Claims Act case it filed against the company.

On April 1, 2010, the United States sued KBR for damages claiming that KBR had violated the False Claims Act by billing under LOGCAP III, which is KBR’s logistics support contract with the Army. These costs were associated with armed private security contractors in Iraq.

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The United States has filed a civil complaint against Kellogg, Brown & Root Services Inc. (KBR) and First Kuwaiti Trading Company for submitting inflated claims for the delivery and installation of trailers to house troops in Iraq, the Justice Department announced today.  KBR is headquartered in Houston. First Kuwaiti, a KBR subcontractor, is based in Kuwait.

KBR is the Army’s primary contractor for logistical support in Iraq.  On Dec. 14, 2001, t he Army awarded KBR the LOGCAP III contract, the third generation of contracts under the Army’s Logistics Civil Augmentation Program (LOGCAP) since the program’s inception in the 1980s.  LOGCAP III required KBR to provide logistical support in the military theater whenever and wherever it was needed.  Support included services such as transportation, dining services, facilities management, maintenance and living accommodations for United States and coalition forces.  LOGCAP III was originally awarded to Brown and Root Services, a division of KBR.  The United States has paid KBR tens of billions of dollars for logistical support services since awarding the contract.

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On November 16, 2012 DynCorp International, was awarded an $80M cost-plus-fixed-fee contract. The award will provide for the mentoring and training of the Afghanistan National Army.

Work will be performed in Afghanistan, with an estimated completion date of Oct. 31, 2013.

Despite the success stories of the establishment of Afghanistan’s National Army, there is still the grim reality that it is very weak without international military assistance.

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