LOGCAP Military Contract
Halliburton's largest government contract is with the United States Army Corps of Engineers. Under the contract, known as "LOGCAP" (or Logistics Civilian Augmentation Program), Halliburton is responsible for providing supplies and services to the military on a global basis. Some of the typical civil logistics carried out under the contract are the construction of military housing for the troops, transporting food and supplies to military bases and serving food at military cafeterias.
The military has always used private contractors to carry out civil logistics, but not to a great extent. In 1985, the military created LOGCAP with the purpose of privatizing more of the duties involved in civil logistics. The military first used LOGCAP in 1988 to construct and maintain two petroleum pipeline systems in Southwest Asia in support of contingency operations. But most of the military's civil logistics activities were still not privatized.
It was Dick Cheney, as defense secretary in 1992, who spearheaded the movement to privatize most of the military's civil logistics activities. Under the direction of Secretary Cheney, the Pentagon paid $9 million to Halliburton's subsidiary, KBR, to conduct a study to determine whether private companies like itself should handle all of the military's civil logistics. KBR's classified study concluded that greater privatization of logistics was in the government's best interest. Shortly thereafter, on August 3, 1992, Secretary Cheney awarded the first comprehensive LOGCAP contract to KBR. The Washington Post reported "The Pentagon chose
to carry out the study and subsequently selected the company to implement its own plan." Three years later, in 1995, Halliburton hired Cheney as its CEO.
In 1997, two years after Cheney became CEO of Halliburton, KBR's LOGCAP contract was not renewed and the government alleged the company engaged in fraudulent billing practices. The independent auditing arm of Congress, the GAO, had criticized KBR's performance during America's war in the Balkans. GAO said KBR's cost-overruns in the Balkans inflated the original contract price by 32 percent. After KBR was effectively fired by the Army in 1997, the LOGCAP contract was awarded to Halliburton competitor DynCorp. But, after Cheney became vice president in 2001, DynCorp was fired and KBR was re-awarded the contract.
more:http://www.halliburtonwatch.org/about_hal/logcap.html