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Army V Kbr

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Submitted By jones102390
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Company Overview
KBR is a global engineering, construction and services company supporting the energy, hydrocarbon, government services, and minerals, in industrial and commercial markets. Headquartered in Houston, TX and employees approximately 27,000 people around the world. According to KNR 2014 Press release for the fourth quarter and Annual 2014 financial results, the company had a $1.24B net loss and the company advised that is due to the restructuring of the company. The government service section of the company had a revenue of $111 million down from $126 million, while gross profit suffered a loss of 60 million. The loss according to the company was driven primarily by $46 million in charges relating to the legacy LogCAP III. United States of America v. Kellogg Brown & Root, U.S. District Court. A lawsuit filed in federal court in DC by the US Army, alleged that KBR violated the contract by failing to obtain Army authorization for arming subcontractors and allowing the use of private security contractors who were not registered with the Iraqi Ministry of the Interior. The case was dropped by the US but then in 2014 the Armed Services Board of Contract Appeals advised that KBR use of private security contractors did not violate contractual terms with the Army. The ruling will clear the way for KBR to recover $45 million plus interest from the US Government for 2003-2007 services that were rendered.

Nature and Reason for the Contract
KBR leads the government services world contingency market by providing support to deployed forces around the world under the Logistics Civil Augmentation Program contract (LOGCAP). LOGCAP was created to provide per se an umbrella contract supporting the advanced acquisition planning process for use during wartime or military emergencies. The overall focus is to support and augment the operational strength of the US

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