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Windfalls of War

Secretary of Defense Donald Rumsfeld talks with troops in Iraq. KBR has been paid $37 billion to build infrastructure like this dining hall.   Jim Watson/AP

Windfalls of war: KBR, the government's concierge

By Sharon Weinberger

KBR, formerly Kellogg, Brown and Root, won the first "concierge" contract for an array of services in Iraq and Afghanistan and parlayed it into a sole-source $37 billion bonanza

Windfalls of War

The Pentagon turned to Russia to buy Mi-17 helicopters, like these shown here, to equip the Afghan and Iraqi militaries, to the consternation of American companies. Department of Defense

Windfalls of war: Pentagon buys choppers from Russia to equip Afghan, Iraqi militaries

By Sharon Weinberger

Pentagon contracts to Russian builders of helicopters confounds US companies. Pentagon says Afghan and Iraqi pilots are more familiar with Russian choppers.

Windfalls of War

The Pentagon tried to sole-source a new line of refueling tankers to Boeing for $37 billion, citing the urgency of war, but was overruled. Even though Boeing eventually won the contract, a competition with Europe's EADS forced down the cost of the contract and saved taxpayer dollars.  Boeing

Windfalls of war: Taxpayers get hammered by Pentagon attempts to "one-stop-shop"

By Sharon Weinberger

The air tanker fight shows how competition among defense contractors can drive down the cost of new weapons systems, to the benefit of taxpayers. The Pentagon's competed contracts fell to 55 percent in the first half of 2011.

Windfalls of War

United Flight 175 collides with south tower of the World Trade Center. Chao Soi Cheong/AP

Windfalls of War: A decade of keeping government spending accountable

By Sandy Johnson

UPDATED 10/7/11: Ten years ago, American bombs rained down on Afghanistan, the first thrust of revenge for the 9/11 attacks on the Pentagon and the World Trade Center.

The United States went to war to find and kill terrorist leader Osama bin Laden, who had been given refuge by Afghanistan's Taliban leadership. The Taliban fell quickly; it took another 10 years to kill bin Laden. And still the war drones on.

More than 6,000 soldiers have died in Afghanistan and Iraq. The wars cost taxpayers $2 billion a week. The Pentagon has awarded $206 billion in contracts to support operations in Iraq and Afghanistan.

The bipartisan Commission on Wartime Contracting has concluded that up to $60 billion spent on contracts in Iraq and Afghanistan has been lost to waste, fraud and abuse.

 “The need for reform is urgent,” the commission report said. “Contractors’ support…has been unnecessarily costly, and has been plagued by high levels of waste and fraud.”

Over the last decade, the Center for Public Integrity and its website iWatch News have kept a watchdog’s eye on the Bush administration and now the Obama administration. What follows is a compendium of the Center’s best work on the war.

Windfalls of War III (2011)

Pentagon's no-bid contracts triple in 10 years of war
Over a decade of war, the Pentagon has awarded lucrative military contracts without competitive bidding, and the amount has increased from $50 billion in 2001 to $140 billion in 2010.

Windfalls of War

Afghan police in training Charlie Riedel/AP

Windfalls of war: Pentagon's competition for contracts abysmal compared to other agencies

By Sharon Weinberger

Over the past 10 years, the Pentagon has competed about 60 percent of its contract dollars, which stands in stark contrast to other large federal agencies. State Department competed 75 percent; Energy competed 94 percent; Homeland Security 77 percent.

Windfalls of War

SLIDESHOW: Windfalls of War

By Sarah Whitmire

A U.S. Marine prepares for patrol in Marjah, Afghanistan, where a decade of war has meant billions in profits for defense contractors.

Todd Pitman/AP

Rescue workers work on the damaged section of the Pentagon following the 9/11 terrorist attack.

Department of Defense, Tech. Sgt. Cedric H. Rudisill/AP

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As a World Trade Center tower collapses behind them, people flee on Sept. 11, 2001. Within weeks, the U.S. was at war. The next 10 years saw the Pentagon triple contracts awarded without competition, to $140 billion.

Suzanne Plunkett/AP file

U.S. Marines leave the Kandahar Airport in Afghanistan On New Years' Eve, 2001. In the ensuing 10 years, much has changed about the military's fighting tactics as well as the weapons needed to fight it, creating a bonanza for defense contractors.

 

 

John Moore/AP

Former Secretary of Defense Donald Rumsfeld awards purple hearts and medals at Camp Liberty in Baghdad. In its rush to war, and in the decade afterward, the Pentagon awarded billion-dollar contracts with no competition. 

Gerald Herbert/AP

A U.S. Army soldier has a coffee between missions in Iraq. Houston-based contractor KBR has built elaborate facilities in Iraq and Afghanistan with no-bid contracts that top $37 billion after 10 years of war.

Antonio Castaneda/AP

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The Pentagon turned to Russia to buy Mi-17 helicopters, like these shown here, to equip the Afghan and Iraqi militaries, to the consternation of American companies.

Department of Defense

The Pentagon tried to sole-source a new line of refueling tankers to Boeing for $37 billion, citing the urgency of war, but was overruled. Even though Boeing eventually won the contract, a competition with Europe's EADS forced down the cost of the contract and saved taxpayer dollars. 

Boeing

More than 6,000 Americans have died in Iraq and Afghanistan. The Pentagon has spent billions of dollars on weaponry to better protect soldiers at war.

AP

Secretary of Defense Donald Rumsfeld talks with troops in Iraq. KBR has been paid $37 billion to build infrastructure like this dining hall.  

Jim Watson/AP

Windfalls of War

Top 100 Contractors in Iraq, Afghanistan

By The Center for Public Integrity

This list was created from data covering contract transactions executed in fiscal years 2004, 2005, and 2006, where the reported place of performance was Iraq or Afghanistan. The data — available from the General Service Administration's Federal Procurement Data System — is limited to the 100 vendors receiving the most obligated funds during this three-year period.

When the Center for Public Integrity published its first "Windfalls of War" investigation, in October 2003, up-to-date data on federal contracting activity was not available. As a result, Center staff gathered contract amounts from documents obtained under the Freedom of Information Act. Since then, however, most such contracts for the post-war efforts list Iraq or Afghanistan as their "place of performance," making the contracting process more transparent and the search for data—available from the General Service Administration's Federal Procurement Data System—more methodical.

Contract amounts in the new data represent actual dollars obligated for products or services. Because of variability in how amounts were reported in the 2003 documents, amounts from the original report cannot be accurately combined or compared with dollar amounts in the 2007 update.

The updated data does not include all Iraq reconstruction contracts. For example, contract transactions handled by the Army Joint Contracting Command Iraq/Afghanistan is maintained in a separate system. Though summary information about those contracts is available from various sources, including the Special Inspector General for Iraq Reconstruction quarterly reports to Congress, detailed transaction information is not generally available to the public.

The Center has requested information about these contract transactions under the Freedom of Information Act. That information will be added here as it is made available.

Windfalls of War

Baghdad bonanza

By Bill Buzenberg

KBR, Inc., the global engineering and construction giant, won more than $16 billion in U.S. government contracts for work in Iraq and Afghanistan from 2004 to 2006—far more than any other company, according to a new analysis by the Center for Public Integrity. In fact, the total dollar value of contracts that went to KBR — which used to be known as Kellogg, Brown, and Root and until April 2007 was a subsidiary of Halliburton—was nearly nine times greater than those awarded to DynCorp International, a private security firm that is No. 2 on the Center's list of the top 100 recipients of Iraq and Afghanistan reconstruction funds.

Another private security company, Blackwater USA, whose employees recently killed as many as 17 Iraqi civilians in what the Iraqi government alleges was an unprovoked attack, is 12th on the list of companies and joint ventures, with $485 million in contracts. (On November 14, the New York Times reported that FBI investigators have concluded that 14 of the 17 shootings were unjustified and violated deadly-force rules in effect for security contractors in Iraq, and that Justice Department prosecutors are weighing whether to seek indictments.) First Kuwaiti General Trading & Contracting, which immediately precedes Blackwater on the Top 100, came under fire in July after a pair of whistleblowers told a House committee that the company essentially "kidnapped" low-paid foreign laborers brought in to help build the new U.S. embassy in Baghdad. First Kuwaiti and the U.S. State Department denied the charges.

Other key findings from the Center's analysis:

• Over the three years studied, more than $20 billion in contracts went to foreign companies whose identities—at least so far—are impossible to determine.

Windfalls of War

Documents reveal concern regarding Halliburton contracts

By André Verlöy

Documents obtained by the Center for Public Integrity show that the Army Corps of Engineers ignored sharp objections by its top procurement official concerning Halliburton contracts in Iraq and the Balkans.

The most recent controversy surrounds the extension of a troop-support contract in the Balkans held by Kellogg, Brown & Root, a Halliburton subsidiary. Bunnatine Greenhouse, the contracting official, objected to the 11-month extension worth an estimated $165 million because she felt it was not justified. She has asked for an independent investigation of possible procurement fraud.

Time magazine broke the story regarding Greenhouse's allegations last week. Since then, the Center has obtained additional documents—none of which was originally included among those the Army Corps supplied to the Center in response to a Freedom of Information request and follow up lawsuit against the Corps. The new documents include the letter Greenhouse's lawyer sent to Les Brownlee, the acting Army Secretary. That letter mentions that Greenhouse came under pressure from individuals "associated with favorite companies" and experienced "repeated interference" when dealing with KBR. The documents also contain internal Army Corps e-mails and a version of the justification review document which includes notes from Greenhouse such as "Not a valid reason for extension" and "I cannot approve this."

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