KBR, Inc. Says Appeals Board Clears Use of Private Contractors in Iraq
KBR Inc. said the Armed Services Board of Contract Appeals affirmed the government contractor's use of private security contractors during combat operations in Iraq, clearing the way for KBR to recover $45 million for services rendered in 2003 to 2007.
The company, which performs engineering, construction and defense--said the decision also affirms the appropriateness of an added $10 million previously paid to KBR. The payment isn't expected to have a material impact on KBR's 2014 earnings.
The former Halliburton Co. unit has been one of the key U.S. government contractors in Iraq following the 2003 invasion, providing logistical support for American forces, among other tasks. The company has suffered declining revenue as the U.S., having withdrawn from Iraq and scaled back its presence in Afghanistan, continues to reduce military spending.
Last week KBR said it would review its business strategy as the company continued its run of declining quarterly revenue, now at 19 straight periods.
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