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The Pentagon extended a Halliburton Co. contract for 11 months beyond its expiration despite warnings that the company was "out of control" in its work providing troop support in the Balkans, government memos showed.
"There is little or no incentive for the contractor to reduce or keep cost down," senior Army contracting officer Bunnatine Greenhouse wrote her bosses in January 2002 after a review of Halliburton's performance.
Nearly three years later, Greenhouse wrote her superior this month that it was inappropriate for the government to extend the $2 billion contract for Vice President Dick Cheney's former company.
Greenhouse complained to Lt. Gen. Carl Strock, commander of the Army Corps of Engineers, that the Corps should not have halted plans to let companies compete for a successor Balkans contract. She is the agency's top contracting officer.
Corps officials initially justified stopping the bidding by concluding that a "compelling emergency" would exist if Halliburton's work was interrupted.
However, when Greenhouse challenged the justification and sought an explanation of the emergency, Corps officials changed their reasoning. The new explanation was that Halliburton subsidiary KBR was the "one and only" company that could do the job.
Greenhouse wrote Strock on Oct. 5 that "the truth should be clearly explained" about the reason for halting competition.
She not only complained there was no explanation of what drove officials to cite an emergency, but, referring to the second justification, added, "It is not reasonable to believe that only one source responded to the solicitation."
Greenhouse, who has said she was frozen out of decisions on Halliburton, went public last weekend with allegations that Army officials showed favoritism to the company.
The FBI has asked Greenhouse's lawyers for an interview with her. The bureau has launched a criminal investigation of the Halliburton's no-bid work.
The Associated Press has obtained dozens of documents that Greenhouse intends to provide to investigators.
Halliburton spokeswoman Wendy Hall said, "This is very old information. The issue mentioned about the Balkans was fully dealt with and resolved several years ago, and since then KBR has received high marks from the Army on our Balkans Support Contract."
Strock, in a letter to Corps employees on Friday, said the Army is investigating Greenhouse's allegations and therefore would not respond "to ensure that a fair investigation can proceed."
The Balkans contract was to end last May 27, but has now been extended through next April.
The Army has cited severe problems with Halliburton's work in the Balkans, many of them documented in a Jan. 4, 2002, report by Greenhouse - who reviewed findings of investigators known as a "tiger" team.
"The general feeling in the theater is that the contractor is 'out of control,"' she wrote. "There is little or no incentive for the contractor to reduce or keep cost down."
Greenhouse said it appeared the Halliburton subsidiary "makes the decisions of what is constructed, purchased or provided and it appears that oftentimes the products and services delivered reflect gold-plating since the contractor proudly touts that they provide the very, very best."
Greenhouse said Army contracting officials must work as a team because "divided - the contractor will 'eat our lunch."'
On the Net: U.S. Army Corps of Engineers http://www.usace.army.mil/
Source: AP
"There is little or no incentive for the contractor to reduce or keep cost down," senior Army contracting officer Bunnatine Greenhouse wrote her bosses in January 2002 after a review of Halliburton's performance.
Nearly three years later, Greenhouse wrote her superior this month that it was inappropriate for the government to extend the $2 billion contract for Vice President Dick Cheney's former company.
Greenhouse complained to Lt. Gen. Carl Strock, commander of the Army Corps of Engineers, that the Corps should not have halted plans to let companies compete for a successor Balkans contract. She is the agency's top contracting officer.
Corps officials initially justified stopping the bidding by concluding that a "compelling emergency" would exist if Halliburton's work was interrupted.
However, when Greenhouse challenged the justification and sought an explanation of the emergency, Corps officials changed their reasoning. The new explanation was that Halliburton subsidiary KBR was the "one and only" company that could do the job.
Greenhouse wrote Strock on Oct. 5 that "the truth should be clearly explained" about the reason for halting competition.
She not only complained there was no explanation of what drove officials to cite an emergency, but, referring to the second justification, added, "It is not reasonable to believe that only one source responded to the solicitation."
Greenhouse, who has said she was frozen out of decisions on Halliburton, went public last weekend with allegations that Army officials showed favoritism to the company.
The FBI has asked Greenhouse's lawyers for an interview with her. The bureau has launched a criminal investigation of the Halliburton's no-bid work.
The Associated Press has obtained dozens of documents that Greenhouse intends to provide to investigators.
Halliburton spokeswoman Wendy Hall said, "This is very old information. The issue mentioned about the Balkans was fully dealt with and resolved several years ago, and since then KBR has received high marks from the Army on our Balkans Support Contract."
Strock, in a letter to Corps employees on Friday, said the Army is investigating Greenhouse's allegations and therefore would not respond "to ensure that a fair investigation can proceed."
The Balkans contract was to end last May 27, but has now been extended through next April.
The Army has cited severe problems with Halliburton's work in the Balkans, many of them documented in a Jan. 4, 2002, report by Greenhouse - who reviewed findings of investigators known as a "tiger" team.
"The general feeling in the theater is that the contractor is 'out of control,"' she wrote. "There is little or no incentive for the contractor to reduce or keep cost down."
Greenhouse said it appeared the Halliburton subsidiary "makes the decisions of what is constructed, purchased or provided and it appears that oftentimes the products and services delivered reflect gold-plating since the contractor proudly touts that they provide the very, very best."
Greenhouse said Army contracting officials must work as a team because "divided - the contractor will 'eat our lunch."'
On the Net: U.S. Army Corps of Engineers http://www.usace.army.mil/
Source: AP