Panel Finds Lax Oversight Of Wartime Contracting

In one example, defense auditors challenged KBR after it billed the government for $100 million in costs for private security even though the contract prohibited the use of for-hire guards.

KBR has defended its performance and criticized the commission for making "biased" statements against the company.

"As we look back on what we've done, we're real proud of being able to go into a war theater like that as a private contractor and support 200,000 troops," William P. Utt, chairman of the Houston-based KBR, said in May in an interview with AP reporters and editors.

KBR is also linked to the dining hall construction snafu, although the commission faults the military's planning and not the contractor. With American forces scheduled to leave Iraq by the end of 2011, the U.S. will use the new facility for two years at most.

In July 2008, the Army said a new dining facility was badly needed at the Camp Delta forward operating base because the existing one was too small, had a saggy ceiling, poor lighting and an unsanitary wooden floor.

KBR was awarded a contract in September. Work began in late October as American and Iraqi officials negotiated the agreement setting the dates for the U.S. troop withdrawal.