Thursday, September 6, 2012




Kellogg Brown & Root can force Uncle Sam to produce records on the Army's alleged failure to provide force protection for KBR logistical services workers in Iraq, a federal judge ruled.
KBR could face civil penalties of more than $300 million, on the United States' claims that it billed the federal government more than $100 million for private security contractors it hired.
The government says its LOGCAP III contracts with KBR prohibited the use of such contractors.
U.S. Chief Judge Royce Lamberth ruled on Aug. 31 that he would allow discovery, after dismissing, in April, the contractor's argument that the federal government failed to provide adequate security.
KBR also asked the government to identify which KBR claims it believes are false, by releasing the invoices, and it sought documents relating to government contracts with other contractors in Iraq, and their relations with private security firms.
Lamberth ruled that the government already has released information relating to the specific claims in question, and that the government's relationship with other contractors is not KBR's business.
"The court is inclined to grant, with limitations, KBR's motion to compel the production of evidence relating to the United States' force protection obligations to KBR and its subsidiaries under LOGCAP III," Lamberth wrote. "Although this court has dismissed KBR's counterclaim, the United States' compliance (or lack thereof) with its force protection obligations under LOGCAP III may be relevant to whether it was reasonable for KBR to charge for [private security contractors]. However, such discovery