Halliburton: Just Another Company

Of course Halliburton is treated just like any other company by the Pentagon. They get no special privileges. Right?

WASHINGTON (Reuters) – The U.S. Army reversed a decision late Tuesday to withhold payment on 15 percent of future invoices of Halliburton Co.’s logistics deal in Iraq and gave the company more time to resolve a billing dispute.

The Army said earlier Tuesday it had decided that starting Wednesday it would withhold 15 percent of payments on future bills from Halliburton unit Kellogg Brown and Root for a logistics contract servicing U.S. troops in Iraq and Kuwait.

…The 15 percent withholding can be implemented under Federal Acquisition Regulations which [a spokeswoman for the Army Field Support Command] said were commonly used and not done specifically to target KBR. The Army had estimated the withholding could amount to about $60 million a month based on current KBR billing schedules, but this figure could be amended. An estimated $8.2 billion in future work orders in Iraq could potentially be affected.

The threat to dock payments hung over the company for months because of a dispute over whether KBR properly documented bills for feeding and housing troops in Iraq and Kuwait. Two previous extensions were granted and another one had been expected by KBR when a deadline expired last Sunday.

I wonder what could have caused the Pentagon to change their mind?