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The Justice Department has filed a claim against Kellog, Brown and Root alleging unjust enrichment and breach of contract. The claims stem from a contract KBR had with the US Army to provide logistical support for soldiers in Iraq. According to the DoJ, KBR billed the government for additional services not included in the contract, including security.
Under the contract, KBR did not have military authorization to arm its employees or subcontractors. Never the less, KBR hired three companies who were not registered with the Iraqi Ministry of the Interior to provide armed security for its executives and awarded subcontracts to at least 30 additional companies that used armed security guards. The government was subsequently billed for the cost.
KBR, who is being represented by Susman Godfrey, said in a statement that “…the costs incurred and actions taken by the company and its subcontractors to provide support and to protect its employees and subcontractors were reasonable, necessary and appropriate under the contractual arrangement between KBR and the Army.”
