Halliburton Contracts in Iraq: The Struggle to Manage Costs
Examination of multibillion-dollar contract to restore Iraq's oil infrastructure shows no evidence of profiteering by Halliburton Co, but does demonstrate how price controls are not effective because of uncertainties of war; Pentagon's contract with Halliburton subsidiary Kellogg Brown & Root, conceived in secrecy before war and signed in Mar, was meant as stopgap deal to last no more than few months; it has been in effect ever since and has grown to more than $2 billion; scope of contract includes myriad tasks, and costs have increased through task orders and subcontracts, some of which are carried out with limited documentation or disclosure; Gordon Adams, military procurement expert, notes that under urgent need of wartime, contractors will take premium price for getting work done fast; timeline illustrating trajectory of Halliburton's Iraqi oil contract, from Nov 2002 to present (M)
