More troubling contracts

[dijetlo]

Since Iraqi contracting has every ones attention today, I thought I would take a moment and see what some of our old buddies have been up to.
No worries for Haliburton. buying Dick Cheny that new job in DC seems to have been the smartest thing they could have done.

The Pentagon contracts were awarded without competitive bidding and have a potential value of $15.6 billion; recent estimates by the Army have put the current value of the Halliburton contracts at about $5 billion...Halliburton Company overcharged the government by as much as $61 million for fuel delivered to Iraq under huge no-bid reconstruction contracts, senior military officials said Thursday...Military officials said the Pentagon was negotiating with K.B.R. over how to resolve the fuel charges. But Michael Thibault, deputy director of the Defense Contract Audit Agency, said in a telephone interview that a draft report by the agency had recommended that the Army Corps of Engineers seek reimbursement... He said auditors expected to issue a final report this month, but added that the preliminary findings involved overcharging that was "potentially very substantial."

The larger problem is that many of their contracts are "cost plus" meaning that the US government pays the costs of the project, plus a profit. Haliburton is supposed to tell us the cost before it begins the work but apparently, that was an excessive request on the part of the US government.

Other questions, in a second contract with the Army, involved unacceptable delays by the subsidiary in providing cost estimates for dozens of projects already under way in Iraq, Mr. Thibault said... Among projects under way, the company has provided the government with cost estimates for just 12 orders, with 69 outstanding and overdue, the officials said. They said the delays raised the possibility that the company would eventually claim an unacceptably high cost for a project whose work was already largely completed.

For those who thought that we had no plan for postwar Iraq...

The second contract, for oil reconstruction projects, was formally awarded in March on a "sole source" basis, but the decision to give the project to Halliburton was made in late 2002 by senior administration officials who were part of a secret task force planning for postwar Iraq.

At least we had plans for the oil, if not what we were going to do with the police, army, politicians and people of Iraq. I guess we know why Cheny didn't want his energy taskforce investigated. Did he comply with that subpoena or is he still trying to claim that when he divided Iraq up with his big oil buddies that constituted "privileged communication"?

 

[jimnyc]

I have just one question, how much money did Halliburton make off of this 'overcharging'?

 

[Palestinian Jew]

try 61 mill buddy

http://story.news.yahoo.com/news?tmpl=story&cid=514&e=1&u=/ap/20031212/ap_on_go_ca_st_pe/halliburton_probe_27

Long Live Halliburton!!!!!

 

[jimnyc]

Originally posted by Palestinian Jew
try 61 mill buddy

http://story.news.yahoo.com/news?tmpl=story&cid=514&e=1&u=/ap/20031212/ap_on_go_ca_st_pe/halliburton_probe_27

Long Live Halliburton!!!!!

Right from the article in question:

"The officials said Halliburton did not appear to have profited from overcharging for fuel, but had instead paid a subcontractor too much for the gasoline in the first place."

Long live those who can't even be bothered to read!!

 

[Palestinian Jew]

They still overcharged, they just ended up not benefitting from it.

 

[jimnyc]

Originally posted by Palestinian Jew
They still overcharged, they just ended up not benefitting from it.

Changing your stance already?

You just stated not 10 minutes ago that Halliburton made 61 million dollars off of the overcharging.

THEY were overcharged by a Kuwaiti company. They didn't make one dime off of the overcharging.

 

[Palestinian Jew]

they did make 61 mll off over charging, then they themselves got ripped off

 

[dijetlo]

Originally posted by jimnyc
Changing your stance already?
You just stated not 10 minutes ago that Halliburton made 61 million dollars off of the overcharging.
THEY were overcharged by a Kuwaiti company. They didn't make one dime off of the overcharging.

Sure Jim, those sneeky Kuwaitis fooled those old teddy bears at Haliburton. Haliburton doesn't sell and deliver oil to every corner of the globe do they, I'm sure they had no idea what the going price for oil in Iraq was. Would you be receptive to disallowing Haliburton from further contracts because they are obviously too stupid to run one of these things efficiently? They are paying twice the market price to those mean ol' Kuwaittis, what a pack of rubes, huh?
You can pull your blinders down tight if you want, it doesn't change what the rest of us see.

 

[jimnyc]

Originally posted by Palestinian Jew
they did make 61 mll off over charging, then they themselves got ripped off

Sorry, Mr. I can't read - they were already charged the additional 61 million.

So, your contention is that they ripped off our government to the tune of 61 million dollars, and then they got ripped off themselves after the fact? Please provide inks to backup your statements.

Until then I will just continue to laugh at you.

 

[jimnyc]

Originally posted by dijetlo

Sure Jim, those sneeky Kuwaitis fooled those old teddy bears at Haliburton. Haliburton doesn't sell and deliver oil to every corner of the globe do they, I'm sure they had no idea what the going price for oil in Iraq was. Would you be receptive to disallowing Haliburton from further contracts because they are obviously too stupid to run one of these things efficiently? They are paying twice the market price to those mean ol' Kuwaittis, what a pack of rubes, huh?
You can pull your blinders down tight if you want, it doesn't change what the rest of us see.

Yeah, they purposely allowed themselves to be overcharged 61 million dollars so they in turn can overcharge the government that exact same amount. All that to break even on the overcharging. They sure are some devilish characters.

Get your head out of your ass, boy!

 

[dijetlo]

Originally posted by jimnyc
Get your head out of your ass, boy!

Time to take you to school, junior.
I build widgets for the government, though to be fair I don't just make widgets for the government, I'm a worldwide widget leader. A widget is comprised of a Thang, a Sprog and ananothathang. My government contract is cost plus, so on my dollar widget, I make a 3 pennies. (cost = $1.00 *.03%).
My Sprog supplyer comes to me with a deal. He wants to triple my cost per sprog for this contract, allowing me to buy sprogs below cost on my private contracts in exchange. I can now underbid my private competitors on any contract in which I am using sprogs, since my government contract now subsidizes my private ones. I say cool, since I'm sitting in Kuwait at the time and no Kuwaitti law is being broken. Want to know the best part?
I double my profit on the government contract as well. (Cost = $2.00 *.03 = 6 cents).
Your were going to argue what? That Haliburton was loosing money, they aren't. That they were getting fleeced? Also a little silly since they don't pay for the oil, the Corp of Engineers does, it's a cost plus contract. There is a reason they over-payed, but the facts don't back up your conclusions...

 

[jimnyc]

Originally posted by dijetlo
Time to take you to school, junior.

BWaaahaHhaHAHAHhaHhaHahaa!!! You're too funny!

paid 61 million / charged 61 million = breaking even

Let's face it, all your jargon is just a bunch more of your typical bullshit you like to spout. You haven't a shred of evidence to show Halliburton made anymore than a clerical error.

But, remember, we don't discuss anything unless there's fire. Sounds to me like all you have is your usual smoke out of your ass. Speaking of which, must be quite large at this point with your head up there for so long!

Yeah, I'm gonna get schooled by a tinfoil hat wearing liberal!

 

[jon_forward]

hey jim, is he using the same math that slick willy oopps I mean Mr.Clinton used... the fuzzy kind

 

[eric]

They still overcharged, they just ended up not benefitting from it.

Makes great business sense, just never come to me looking for a job !

 

[jon_forward]

 

[jon_forward]

polish math

 

[eric]

That a pretty creative idea, dijetlo, now unlike Mr. palesintian, you can come to me for a job there Champ.

What I would like to see is the proof that Halliburton is doing exactly what you suggest they are.

 

[jimnyc]

Isn't also funny that this 'overpayment' was discovered from within the defense department - which we were told was run by PNAC - which supposedly includes Cheney and Rumsfeld.

I suppose the defense department auditors also had an agenda though.

 

[eric]

Ask Jones, he will enlighten us !

 

[Sevendogs]

Who said there were no plans for postwar Iraq? Some certainly had their plans to make profit and they do.