Audit faults KBR’s prices
KBR overcharged the U.S. Navy for providing meals to workers and service personnel in the aftermath of Hurricane Katrina, according to a Pentagon audit.
“The prices KBR agreed to pay were greatly inflated,” the 86-page audit said.
“The Navy paid approximately $4.1 million for meals and services we calculate should have cost $1.7 million, more than a $2.3 million difference,” said the audit, signed by Assistant Inspector General for Acquisition Management Richard Jolliffe.
KBR paid for 227,500 meals over a 34-day period, yet the subcontractors served only 113,654, fewer than half, and the remaining meals were discarded, the audit said. It recommended the Navy demand a refund from KBR of at least $1.4 million.
The overcharges were one element of mismanagement by Houston-based KBR, of three Navy contracts valued at $229 million for cleanup and restoration of Navy facilities damaged after Hurricane Ivan in 2004 and Katrina in 2005, the audit said.
Altogether, the audit requested that the Navy seek refunds of at least $8.5 million for “inappropriate” payments to KBR.
KBR spokeswoman Heather Browne said “KBR does not agree with many of the conclusions contained in the report.”
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