Kuwaiti 'overcharger' wins oil contract

WASHINGTON, March 16 (UPI) -- A Kuwaiti company suspected of overcharging the U.S. Army up to $61 million for transporting fuel to Iraq has won another $40 million contract.

Pentagon officials said the Altanmia Commercial Marketing Co. charged Halliburton Co., which had a sole-source contract to provide fuel in southern Iraq, $1.21 per gallon to transport fuel from Kuwait into Iraq. That represents a possible overcharge of $61 million, according to the Pentagon. The new rate is 42-cents per gallon, according to congressional sources.

The DESC made the new award to Altanmia after competing the bid among 19 companies.

"Altanmia dramatically reduced its transportation prices to win the contract, raising questions about why Halliburton was charging taxpayers so much more for the same services. The new contract shows that real competition can save the taxpayers millions of dollars," said Rep. Henry Waxman, D-Calif.

The Army Corps of Engineers, which oversees the Halliburton oil services contract, told a House panel last week the Pentagon planned to terminate Altanmia's contract.