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STATEMENT FOR LETTER ISSUED DECEMBER 18
We do not intend to debate these issues within the context of a political campaign, for either party. The DCAA has received a full and open report as a response to the draft audit.
As we have said, this is a routine process in government contracting. We have always worked with the DCAA and we will continue to work with them in the future. At times, KBR and DCAA have disagreed on issues that were subject to audit, but we have always been able to work through these issues. We have a 60 year history of working with the government. Halliburton helped build U. S. war ships in World War II, as well as projects in Somalia, Rwanda and Haiti. They also put out more than half of the oil well fires in Kuwait during the 1991 Gulf War and now are working in Iraq.
The internal audit is a routine internal management tool. This ensures that everyone follows company policies and procedures. All of the documents that were used for the internal evaluation were provided to DCAA. It is a necessary condition of an effective internal audit that the contents be confidential, otherwise we would get sanitized, cursory internal audit reports that are suitable for public scrutiny in today's litigious environment.
The DCAA employee ignored identification on the internal document – on each and every page – that clearly states the document was proprietary and confidential for KBR internal use only, and this could be a violation of the law. The confidential issues identified in the company's internal evaluation did not warn or say that there were excessive fuel prices and did not identify any violation of government contracting regulations.
There have been multiple meetings with the DCAA, since the December 10 letter referenced by many media outlets and the draft audit, some even face-to-face. That letter is old, outdated information. We are working with the DCAA and we have updated and provided materials to them following these numerous meetings.
We are hopeful that these issues can be resolved quickly.
We believe our response proves KBR delivered fuel to Iraq at the best value, the best price and the best terms.
Contact
Wendy Hall
wendy.hall@halliburton.com
Halliburton, Public Relations
(p) 713.759.2605
Employment Contact
jobs@halliburton.com
(p) 800.888.7668
ext. 8005
Supplier/Procurement Contact
kbr_supplier_relations@halliburton.com
Supplier Diversity Contact
Erin Petkovich
supplier_diversity@halliburton.com
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