Contractor KBR given $83M bonus for Iraq electrical work

In other testimony before the Senate Democratic Policy Committee, a former KBR electrician said the Houston-based contractor endangers lives by using untrained employees, counterfeit electrical breakers and wiring materials unsuited to the desert sun and hot temperatures. An inspector hired by the Army said the firm's work is some of the "most hazardous, worst quality" work he's ever seen.

Sen. Byron Dorgan, D-N.D., the committee chairman, said the payments given for excellent performance under KBR's government contract were made even after the Defense Contract Management Agency identified problems with KBR's work. He said he learned about the bonuses while reading internal Pentagon documents, noting that "it was not easy to discover these bonus payouts" in papers containing contract information.

"This is not an attempt to tarnish one contractor. This is a search for the truth, and the closer we get to the truth, the angrier I get at this government," Dorgan said.

In an e-mailed statement, KBR spokeswoman Heather Browne said "the assertion that KBR has a track record of shoddy electrical work is unfounded." She said the company is proud of the work performed in "austere, unpredictable conditions" in Iraq.

Objecting to the word "bonuses," she said the government pays award fees under the contract's fee structure, which is based on a grading system that scores a number of criteria, including performance, quality, schedule, cost control and management support.

"Our customer, the U.S. Army, remains satisfied with our work, as evidenced by our award fee board scores that have consistently ranged from good to excellent," she said.

Information revealed during the hearing stunned the parents of Staff Sgt. Ryan Maseth, 24, who was electrocuted on Jan. 2, 2008, in his shower in the Radwaniyah Palace Complex. He is among three troops electrocuted while showering in Iraq, where more than a dozen troops have been killed and untold others injured in electrical incidents.

Maseth's parents filed a wrongful death action in federal court against KBR, which maintains electrical work in tens of thousands of U.S. facilities in Iraq. The firm denies responsibility in the deaths.

"I can't believe it. It's frustrating and discouraging," said Douglas Maseth of Allison Park, the soldier's father. "It's ridiculous. Every time you hear about them they're in trouble for something, and the government still gives them more contracts, and now cash bonuses."

The soldier's mother, Cheryl Harris, said she's at a loss for words.

"I'm just so disappointed," she said.

During the hearing broadcast live on the Internet, Dorgan pointed out that in a three-month period, inspections of KBR's work showed more than 30,000 electrical mistakes. He said it is an example of "stunning incompetence."

Jim Childs, a master electrician and electrical inspector, worked in Iraq for Task Force Safe, which was created to inspect and oversee electrical repairs in 90,000 U.S.-maintained facilities there. He testified that he and his co-workers found improper wiring done by KBR in every structure he inspected, including the building used by the Defense Contract Management Agency commander.

Eric Peters, who said he left KBR because he was "disgusted" by what he witnessed while working for the firm, said the company operates with a "disregard for the safety of its employees and soldiers." He said some materials used outdoors by KBR are designed for indoor use and melt in the heat, causing a risk of injury or death.

Sen. Bob Casey, D-Scranton, criticized the Defense Department for failing to set up a contracting system that requires accountability, noting the military is "almost totally reliant on one company." He said KBR earned "tens of billions" from government contracts in Iraq and Afghanistan.

Casey said he is concerned daily about troops because of the slow pace of inspections at war zone facilities. As of last week, about half remained uninspected, he said.

In a letter to Dorgan distributed at the hearing, Deputy Secretary of Defense William Lynn said KBR has not received bonuses for work performed after Jan. 1, 2008. Lynn indicated no future awards would be given until a comprehensive review is conducted.

Robin Acton can be reached at racton@tribweb.com or 724-830-6295.

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