Halliburton Contract Lost and Found... and Lost Again

Never underestimate the power of public shaming. After yesterday's House Committee on Government Oversight and Reform hearing into military contracting in Iraq, the Army has decided to shelve a contract worth $19.6 million to Halliburton. The defense titan, it turns out, had subcontracted the Blackwater corporation to provide private security for its operations in Iraq -- something the terms of the contract arguably prohibit. Says the New York Times:

In the dispute with Halliburton, the Army insisted repeatedly to Congressional investigators last year that it could find no evidence that Blackwater had been hired by Halliburton and its subcontractors in Iraq for security.

But in a letter dated Tuesday and made public on Wednesday, Army Secretary Francis J. Harvey said that additional investigation showed that Blackwater had provided private security guards for a Halliburton subcontractor, ESS Support Services, a construction and food services business, and that the costs “were not itemized in the contracts or invoices” prepared by ESS.