Law360, New York (October 10, 2014, 7:07 PM ET) — Defense contracting giant KBR Inc. has been accused of buying hundreds of millions of dollars of excessive or duplicate supplies that it stockpiled under a massive LOGCAP III logistical support contract for Iraq and Afghanistan, according to a False Claims Act suit unsealed Thursday in Illinois.
According to the complaint unsealed by U.S. District Judge Michael M. Mihm, KBR and its subsidiary Kellogg Brown & Root Services Inc. allegedly maintained a fragmented inventory management system for tracking and storing supplies, equipment and materials that allowed KBR to rack up hundreds of millions of dollars of wasteful and excessive purchases on the government’s dime.
The alleged overcharges were made under the massive LOGCAP III contract that KBR snagged from the U.S. Department of Defense in 2001 to provide logistical support to U.S. troops in Iraq and Afghanistan.
“Through this course of fraud, KBR has billed the government for thousands of purchases of materials it did not need to buy,” the suit said. Continue reading