Iraq ContractingRep. Waxman and other members of Congress have been seeking information on contracts entered into by the Administration for reconstruction and development work in Iraq, including several billion dollar contracts with a subsidiary of Halliburton Corporation. Many questions have been raised about the Iraq contracting process, including questions on the seemingly inflated prices charged by Halliburton to import gasoline from Kuwait into Iraq and Halliburton's admission of kickbacks to company officials.
Fact Sheets
Chronology
Thursday, October 14, 2004
Problems Found in Bush Administration Management of Iraqi Funds
A new audit by the International Advisory and Monitoring Board finds that the Bush Administration has not properly accounted for the expenditure of hundreds of millions of dollars in Iraqi oil proceeds.
- IAMB Audit
- Fact Sheet
Tuesday, October 05, 2004
House Subpoenas Documents on Administration Mismanagement of Iraqi Funds
The Government Reform Committee has issued a subpoena sponsored by Rep. Waxman to obtain key documents from the Federal Reserve Bank relating to the Bush Administration's mismanagement of approximately $20 billion in Iraqi oil proceeds and other funds. The Committee also writes Defense Secretary Rumsfeld to insist that he produce documents related to the Administration's use of these Iraqi funds for secret, no-bid contracts with Halliburton and other companies.
- Rep. Waxman's Statement
- Letter to Secretary Rumsfeld
Monday, September 20, 2004
Value of Halliburton Troop Support Contract Continues to Increase
Data from the Army Field Support Command indicates that more than $7.2 billion has now been committed to Halliburton for troop support in Iraq under the Logistics Civil Augmentation Program (LOGCAP) contract. The records show that between Aug. 3 and Sept. 8 of this year, the obligated value of the company’s Iraq task orders increased by nearly $800 million.
- LOGCAP Spreadsheet
Tuesday, August 24, 2004
Pentagon Auditors Urge Withholding of Halliburton Payments
In an August 16 memorandum released by Rep. Waxman, the Defense Department Audit Agency “strongly encourages” the Defense Department to begin withholding 15% of Halliburton’s reimbursements, citing “significant unsupported costs” totaling over $1.8 billion and “numerous, systemic issues” with Halliburton’s cost estimates.
- Attachment: DCAA Memo
- Letter to Defense Department
Thursday, July 29, 2004
Investigation of Iraq Funds Mismanagement Needed
A new report from the Inspector General of the Coalition Provisional Authority finds multiple problems in how the United States managed the Iraqi oil proceeds deposited into the Development Fund for Iraq, leading Rep. Waxman to renew his call for a congressional investigation.
- CPA IG Report
- Letter to Chairman Davis
Saturday, July 24, 2004
Two New Reports Criticize Halliburton’s Iraq Contracts
Reps. Waxman and Dingell release two reports on Halliburton’s work in Iraq. The first report, prepared by GAO, finds systematic problems in the planning, implementation, and oversight of Halliburton’s contract to provide troop support services. The second report, by the minority staff, finds extensive overcharges in Halliburton’s gasoline prices.
- Fact Sheet on Troop Support Contract
- GAO Report on Troop Support Contract
- Minority Staff Report on Gasoline Overcharges
- Press Release
Friday, July 09, 2004
Audit Finds U.S. Administration of Iraqi Oil Funds "Open to Fraudulent Acts"
Rep. Waxman releases a preliminary audit of the Development Fund for Iraq by KPMG that finds serious deficiencies in U.S. accounting practices and criticizes CPA officials for failing to cooperate with the U.N.-approved audit. Rep. Waxman asks Chairman Davis to subpoena documents relating to U.S. expenditures from the fund.
- Letter to Chairman Davis
- KPMG Preliminary Audit
- UN Letter
Monday, June 14, 2004
New Evidence of Halliburton Overcharges
Five former Halliburton employees and one former executive of a Halliburton subcontractor describe egregious examples of waste, fraud, and abuse involving Halliburton’s Iraq contracts. A new Pentagon audit finds serious deficiencies in Halliburton’s billing practices.
- Bunting Statement
- DCAA Audit Report
- DeYoung Statement
- Letter to Chairman Davis
- Warren Statement
- West Statement
- Wilson Statement
Sunday, June 13, 2004
Vice President's Chief of Staff Received Early Briefing on Halliburton Contracts
Rep. Waxman discloses that a senior Defense Department official briefed I. Lewis “Scooter” Libby, the Vice President’s chief of staff, and other senior Administration officials in October 2002 about the Department’s proposal to award lucrative Iraq contracts to Halliburton. This new information appears to contradict the Vice President’s repeated assertions that he and his staff were not informed prior to the award of the Halliburton contracts.
- Letter to the Vice President
Tuesday, June 01, 2004
Waxman Raises Questions about Halliburton's Iraq Oil Contracts and VP Cheney's Involvement
In a letter to Secretary Rumsfeld, Rep. Waxman raises questions about the legality of the decision to award Halliburton a task order to develop contingency plans for Iraq’s oil infrastructure, citing new GAO findings that Secretary Rumsfeld’s office overruled Army officials who questioned the issuance of the task order. Rep. Waxman’s letter also asks for information about the recently disclosed communications between the Defense Department and Vice President Cheney’s office regarding Halliburton’s oil contracts.
- Letter to Secretary Rumsfeld
Tuesday, May 18, 2004
Conflicts of Interest Leave Iraq Reconstruction Vulnerable to Waste, Fraud, and Abuse
A joint report released by Rep. Waxman, Sen. Dorgan, Rep. Dingell, and Sen. Wyden reveals that the private contractors hired to oversee the reconstruction of Iraq have ongoing business relationships with the construction firms they are supposed to supervise.
- Letter to Sec. Rumsfeld
- Rep. Waxman's Statement
- The Report
Thursday, March 11, 2004
Rep. Waxman Details Halliburton Audit, Other New Information on Iraq Contracting
At a Committee hearing and in a briefing memo to colleagues, Rep. Waxman details new information from the Defense Contract Audit Agency, GAO, and the Defense Energy Support on Halliburton’s work in Iraq.
- Briefing Memo
- Rep. Waxman's Statement
- DCAA Audit
Friday, February 27, 2004
Halliburton Unit Reportedly Finds Company Cost Controls "Weak"
Reps. Waxman and Dingell request a copy of Halliburton's internal "Tiger Team" memo which reportedly describes major deficiencies in the company's accounting and control systems.
- Letter to Halliburton
Tuesday, February 24, 2004
Halliburton Fuel Waiver Granted Under Suspect Circumstances
Reps. Waxman and Dingell ask the DOD IG to investigate the December 19 waiver given by the Corps of Engineers to Halliburton, citing new evidence that this unusual waiver -- which relieved Halliburton of its obligation to provide data to justify its high gasoline prices -- may have been awarded on false premises.
- Letter to Defense Department Inspector General
Thursday, February 12, 2004
Whistleblowers: Halliburton Routinely Overcharged
Two Kuwait-based former employees report that Halliburton systematically overpaid for goods and services and then passed these overcharges on to the U.S. taxpayer.
- Letter to Defense Contract Audit Agency
Saturday, January 24, 2004
Waxman Calls for Congressional Investigation of Halliburton Kickbacks
Rep. Waxman reveals that the Administration may have been informed of the kickbacks to Halliburton officials before awarding the company a new billion-dollar contract last week and calls for a congressional investigation of this and other issues related to Iraq reconstruction.
- Letter to Chairman Davis
Friday, January 16, 2004
Halliburton Contract Referred for Criminal Investigation
The Defense Department Inspector General has referred the Halliburton fuel contract to the Defense Criminal Investigative Service for investigation of possible criminal violations.
- Letter to Defense Department Inspector General
Thursday, January 15, 2004
New Details on Use of Obscure Kuwaiti Company to Import Gasoline into Iraq
One day after the Defense Contract Audit Agency announced it has referred Halliburton’s gasoline contract to the Inspector General for investigation into potential wrongdoing, Rep. Waxman reveals new details about the unusual facts surrounding the decision to use Altanmia, an obscure Kuwaiti company, to import hundreds of millions of dollars worth of gasoline into Iraq at grossly inflated prices.
- Letter to NSA Rice
Tuesday, January 06, 2004
Halliburton Waiver Ties Hands of Federal Authorities
Reps. Waxman and Dingell urge the Army Corps of Engineers to reverse its decision to excuse Halliburton from justifying the pricing of gasoline imported into Iraq.
- Letter to the Army Corps of Engineers
Friday, December 19, 2003
Defense Department Asked for Subcontractor Records
Reps Waxman and Dingell ask Defense Secretary Rumsfeld to produce documents regarding subcontractors hired by Halliburton to import gasoline into Iraq.
- Letter to Secretary Rumsfeld
Thursday, December 18, 2003
Reps. Waxman and Dingell Detail Fundamental Flaws in Administration's Contracting Approach
In a significant policy letter, Reps. Waxman and Dingell criticize the Administration's procurement strategy for Iraq.
- Letter to Admiral Nash
Wednesday, December 10, 2003
Army Corps Itemization of Halliburton Pricing Raises Serious Concerns
New information from the Army Corps of Engineers raises questions about the prices Halliburton and its subcontractor are charging at every step of importing gasoline from Kuwait into Iraq, including why they are buying gasoline for far more than the wholesale price, charging many times what it costs other companies to import gasoline into Iraq, and adding a significant markup to each gallon.
- Follow-Up Letter
- Letter to NSA Rice
Tuesday, November 25, 2003
DOD Asked to Investigate Use of Development Fund to Pay Inflated Fuel Prices
Rep. Waxman, Sen. Lieberman, and Rep. Dingell ask the DOD IG to investigate the high gasoline prices being charged by Halliburton and the appropriateness of using $725 million from the Development Fund for Iraq to pay these inflated fuel costs.
- Letter to DOD IG
Thursday, November 06, 2003
USAID Refuses to Cooperate with Congressional Request for Information on Work in Iraq
Despite assertions to the contrary, USAID continues to deny Congress basic information on Iraq contracting.
- Letter to USAID
Wednesday, November 05, 2003
Army Corps Considers Terminating Halliburton Fuel Importation Responsibilities
Reps. Waxman and Dingell reveal that the U.S. Corps of Engineers is planning to transfer the responsibility to import gasoline into Iraq from Halliburton to the Defense Energy Support Center, which has said that it can bring gasoline into Iraq for less than half the price.
- Letter to Army Corps of Engineers
Wednesday, October 29, 2003
Halliburton Paid Exhorbitant Price Per Gallon
Reps. Waxman and Dingell reveal that Halliburton was paid $2.65 per gallon to import gasoline from Kuwait into Iraq -- much more than previously estimated. The Administration's role in approving these exorbitant prices is questioned.
- Letter to NSA Rice
- Rep. Waxman's Statement
Tuesday, October 21, 2003
Iraqi Oil Company Imports Gasoline for Far Less Than Price Charged by Halliburton
Reps. Waxman and Dingell disclose that the Iraqi oil company SOMO has imported gasoline into Iraq for just 90 to 98 cents per gallon, which is far less than the price of $1.59 or more per gallon charged by Halliburton.
- Letter to Army Corps of Engineers
Thursday, October 16, 2003
Amendment Reduces Amount Paid to Halliburton by $250 Million
Reps. Waxman and Dingell introduce an amendment to the Supplemental Appropriations Act to reduce by $250 million the amount paid to Halliburton to purchase gasoline.
- Rep. Waxman's Statement
Wednesday, October 15, 2003
Industry Experts Call Halliburton Gasoline Prices "Highway Robbery"
Reps . Waxman and Dingell reveal the prices that Halliburton has charged to import gasoline into Iraq. Oil industry experts say Halliburton's prices are "outrageously high," "a huge ripoff," and "highway robbery."
- Letter to OMB
- Rep. Waxman's Statement
Wednesday, October 08, 2003
Reps. Maloney and Waxman Introduce Bill to End Contracting Abuses
Reps. Maloney and Waxman introduce the Clean Contracting in Iraq Act to prevent a continuation of contracting abuses.
- Fact Sheet
Tuesday, September 30, 2003
OMB Questioned on Overspending, Lack of Oversight and Transparency in Iraq Reconstruction
Rep. Waxman asks OMB Director Bolten to respond to concerns of overspending and lack of oversight and transparency in the reconstruction operations in Iraq. The letter details evidence that indicates that waste and gold-plating is enriching Halliburton and Bechtel while costing the U.S. taxpayers millions and imperiling the goal of Iraqi reconstruction.
- Letter to OMB
Friday, September 12, 2003
Questions on Administration's Supplemental Request for Iraq Oil Reconstruction Funds
Reps. Waxman and Dingell raise questions about the Administration's $2.1 billion request for additional Iraq oil reconstruction funds. The new request more than doubles previous cost estimates and was apparently prepared without consultation with the Army Corps of Engineers, the agency in charge of Iraqi oil reconstruction.
- Letter to OMB
Tuesday, June 24, 2003
Army Corps Questioned on Plans to Mortgage Iraq Oil to Fund Reconstruction
The Administration is considering a plan to mortgage future Iraqi oil revenue to pay the expenses of U.S. contractors, such as Halliburton and Bechtel, now operating in Iraq -- despite past Administration claims that Iraq's oil "belongs to the Iraqi people."
- DOD Response
- Letter to Army Corps of Engineers
Friday, June 06, 2003
Reports: Army Corps May Drop Plan to Issue Competitive Contract for Iraq Oil Work
Rep. Waxman asks for more information regarding reports that the Army Corps of Engineers may, contrary to its prior assurances, drop its plan to rebid the secret contract awarded to Halliburton for oil work in Iraq.
- Letter to Army Corps of Engineers
Thursday, May 29, 2003
Halliburton Subsidiary Received $425 Million under Obscure LOGCAP Contract
Rep. Waxman reveals that a Halliburton subsidiary has received $425 million from the Army for work in Iraq under a little-known but lucrative contract called "LOGCAP." It appears that much, if not all, of this work was awarded to Halliburton without competition from other qualified companies.
- Letter to Acting Secretary of the Army
Tuesday, May 06, 2003
Halliburton Iraq Contract Considerably Broader than Previously Known
Rep. Waxman raises questions about a letter from the Army Corps that reveals that the agency's contract with Halliburton allows the company to produce and distribute Iraqi oil.
- Army Corps Response
- Letter to the Army Corps of Engineers
- Army Corps May 2 Letter
Wednesday, April 30, 2003
Questions on Halliburton Ties to Countries that Sponsor Terrorism
Rep. Waxman asks Defense Secretary Rumsfeld about evidence that Halliburton has profited from business with three nations known for their support of terrorism: Iran, Iraq, and Libya.
- Letter to Secretary Rumsfeld
Monday, April 28, 2003
USAID Asked to Explain Decision to Forgo Open Competition in Awarding Iraq Contracts
In a letter to USAID, Rep. Waxman asks the Administration to provide basic information about the contracts for work in Iraq it has awarded or is in the process of awarding.
- Letter to USAID
Wednesday, April 16, 2003
Army Corps Asked to Clarify Cost of Contracts with Halliburton Subsidiary
In a letter to the Army Corps of Engineers, Rep. Waxman asks for clarification of recent press reports regarding the contract with Kellogg Brown & Root to perform work in Iraq.
- Army Corps Response
- Letter to Army Corps of Engineers
Thursday, April 10, 2003
Questions on Multi-Year, Multi-Billion Dollar Iraq Oil Fire Contract Awarded to Halliburton Subsidiary
Rep. Waxman asks for more information on an Administration contract, entered into with Kellogg Brown & Root for extinguishing oil fires in Iraq, that the Army Corps of Engineers has estimated to be worth up to $7 billion.
- Army Corps Response
- Letter to Army Corps of Engineers
Tuesday, April 08, 2003
GAO Asked to Investigate Halliburton Contracts, Review Contracting Process
Reps. Waxman and John Dingell ask GAO to investigate Defense Department contracts awarded to Halliburton over the past two years and to review the process by which the Administration has signed or intends to sign contracts with private firms for development work in Iraq.
- Letter to GAO on Halliburton Contracts
- Letter to GAO on Iraq Contracts
Wednesday, March 26, 2003
Questions on Iraq Oil Fire Contracts Awarded without Competition or Notice to Congress
In a letter to the Army Corps of Engineers, Rep. Waxman asks why the Administration has entered into a new multi-million dollar contract with Kellogg Brown & Root, a Halliburton subsidiary, for extinguishing oil fires in Iraq without any competition or notice to Congress.
- Army Corps Response
- Letter to Army Corps of Engineers
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