The BBC has exerpts from a new book, the The Halliburton Agenda:
"The Logcap contract pulled KBR out of its late 1980s doldrums and boosted the bottom line of Halliburton throughout the 1990s. It is, effectively, a blank cheque from the government. The contractor makes its money from a built-in profit percentage, anywhere from 1% to 9%, depending on various incentive clauses. When your profit is a percentage of the cost, the more you spend, the more you make.
... Before the ink was dry on the first Logcap contract, the US army was deployed to Somalia in December 1992 as part of Operation Restore Hope. KBR employees were there before the army even arrived, and they were the last to leave. The firm made $109.7m in Somalia. In August 1994, they earned $6.3m from Operation Support Hope in Rwanda. In September of that same year, Operation Uphold Democracy in Haiti netted the company $150m. And in October 1994, Operation Vigilant Warrior made them another $5m...
The army's growing dependency on the company hit home when, in 1997, KBR lost the Logcap contract in a competitive rebid to rival Dyncorp. The army found it impossible to remove Brown & Root from their work in the Balkans - by far the most lucrative part of the contract - and so carved out the work in that theatre to keep it with KBR. In 2001, the company won the Logcap contract again, this time for twice the normal term length: 10 years. "
Oooh, this stuff is complex and twisty and greasy and disgusting! Especially because the Bush-Walker clan has direct and long-standing ties to KBR!
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