The Army will discontinue its multi-billion dollar contract with oil services giant Halliburton Co. to provide logistical support to U.S. troops worldwide, The Washington Post reported.
Halliburton, formerly run by Vice President Dick Cheney, has drawn scrutiny for its work in Iraq from auditors, congressional Democrats and the Justice Department, which is investigating potential overcharges for fuel, dining and laundry services.
Texas-based Halliburton is the world's second-largest oil services company and the U.S. military's biggest contractor in Iraq. Last year, the Army paid the company more than $7 billion under the contract, the Post said.
Rep. Henry Waxman of California, the top Democrat on the House Government Reform Committee and a frequent Halliburton critic, welcomed the move away from the exclusive contract with Halliburton as a good first step. "When you have a single contractor, that company has the government over a barrel," Waxman said. "One needs multiple contractors in order to have real price competition. Real competition saves the taxpayer money."
[CNN]
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