Contractor under fire for faulty electrical work in Iraq awarded contract worth up to $2.8B

By Richard Lardner, AP
Tuesday, March 2, 2010

Army awards lucrative contract to KBR

WASHINGTON — Military authorities say defense giant KBR Inc. has been awarded a contract potentially worth $2.8 billion for work in Iraq as U.S. forces continue to leave the country.

KBR was notified of the award Friday, a day after the company told shareholders it lost about $25 million in award fees because of flawed electrical work in Iraq.

The Houston-based company was charged with maintaining the barracks where a Green Beret was electrocuted in 2008 while showering. The company has denied wrongdoing. But the uproar that followed triggered a review of 17 other electrocution deaths in Iraq and widespread inspections of electrical work in Iraq, much of it performed by KBR.

An Army spokesman said Tuesday that the contract is for one year, with an option for four more.

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