DCAA flags KBR for $61 million in Iraq fuel overcharges

The Defense Contract Audit Agency issued a draft report in December 2003 finding that KBR — a Halliburton subsidiary holding a $2.41 billion no-bid contract — had overcharged the Army for fuel purchases in Iraq by at least $61 million. Auditors ultimately questioned more than $250 million in KBR charges as unjustified and flagged an additional $442 million as unsupported. The findings triggered congressional hearings and exposed systemic weaknesses in post-9/11 defense contracting, where wartime urgency had sidelined competitive bidding and audit controls.