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POGO Calls for Halliburton To Disclose Cost Details of Iraq Contracts

December 12, 2003 


The recent allegations that Halliburton is overcharging in its Iraqi contracts come as no surprise to the Project On Government Oversight (POGO). "Although everyone anticipates that contractors will make a profit, the types of contracts that are involved and the lack of transparency of the entire Iraq contracting process are at fault," states Scott Amey, a senior investigator at POGO.

Halliburton is performing under a cost-plus contract, in other words, the company is reimbursed all costs and paid a percentage of those costs, the "plus," as a fee. Amey argues that "such a contract, provides Halliburton with a disincentive to keep cost in check." "Halliburton officials have stated that the company has not profited from overcharging on its contracts, but that has yet to be seen, and I challenge the company to publically disclose all contract costs and its profits that are based on those costs."

Additionally, the lack of transparency in the contracting process provide by this Administration is appalling. "Each and every contract and subsequent task or delivery order should be made public, so that American taxpayers, the Iraqi people, and the world are assured that American companies are not placing their profits above their efforts." Amey adds, "the Congress should have known what it was doing when it threw money at Iraq reconstruction efforts and eliminated the taxpayer-protection provisions."

See POGO's Alert, "Federal Contracting and Iraq Reconstruction," f
or more information.

Founded in 1981, the Project On Government Oversight (POGO) is a nonpartisan independent watchdog that champions good government reforms. POGO's investigations into corruption, misconduct, and conflicts of interest achieve a more effective, accountable, open, and ethical federal government.

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