Audit: KBR Must Trim Iraq Work Force Or Face Fines

The auditors say if KBR does not make the recommended changes or take even more aggressive steps, the agency will challenge future costs for the excess staff as being "unreasonable," which means the company may not be paid by the government.

The final call, however, on whether to implement the audit's recommendation and withhold any payments rests with the contract managers at Army Sustainment Command in Rock Island, Ill.

The command said Friday it has not completed its analysis of the audit. Lee Thompson, a senior command official, is scheduled to testify at the contracting hearing Monday.

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On the Net:

Army Sustainment Command: http://www.aschq.army.mil/home/LOGCAP.html

Defense Contract Audit Agency: http://www.dcaa.mil/

Commission on Wartime Contracting: http://www.wartimecontracting.gov/

KBR Inc.: http://www.kbr.com/

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