Project Katrina

There have been no shortages of stories about how KBR has been over charging the military on Iraq-related contracts and then, and this is just precious, threatening to cut off the services they are suspected of overcharging for if the bills weren’t paid.

Well it seems overcharging might be standard operating procedure at KBR. The Department of Defense Inspector General thinks the same thing occurred with KBR’s clean-up efforts after Hurricane Katrina.

The Houston Chronicle reports:

The Pentagon Inspector General said he could find no documentation in Navy contracting files to back up KBR claims it paid fair and reasonable prices to subcontractors that served meals in New Orleans.

“The prices KBR agreed to pay were greatly inflated,” the 86-page audit said.

“The Navy paid approximately $4.1 million for meals and services we calculate should have cost $1.7 million, more than a $2.3 million difference,” said the audit, signed by Assistant Inspector General for Acquisition Management Richard Jolliffe.

[….] Altogether, the audit requested that the Navy seek refunds of at least $8.5 million for “inappropriate” payments to KBR.