Corps: Kellogg Brown & Root Contract Has $7-Billion Cap; Only $50 Million Spent So Far
The Corps of Engineers' recently awarded contract to Halliburton Co.'s Kellogg Brown & Root unit to fight oil fires and rebuild petroleum infrastructure in Iraq has an estimated cost ceiling of $7 billion, says Lt. Gen. Robert B. Flowers, the Chief of Engineers. But Flowers also says the actual value of the contract, awarded in March, cannot be determined because it depends on the amount of work to be done. He says that as of April 4, four task orders totaling $50.3 million had been placed under the contract.
Flowers also says the cost-plus-fee contract term is two years and the maximum potential award fee is 7% of the costs of the work to be done. The fee is based on contractor performance.