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U.S. sues KBR over Iraq contracts

WASHINGTON, April 2 (UPI) -- The U.S. Justice Department filed a lawsuit against Kellogg Brown & Root Inc. on charges the defense contractor billed the government for unauthorized services.

The Justice Department in a suit filed Thursday in Washington accused KBR of "knowingly" including "impermissible costs" for private security guard in Iraq.

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The lawsuit said KBR and more than 30 of its subcontractors used private armed security guards starting in 2003 through 2006. The government's suit alleges KBR violated its contracts by failing to get permission to arm its subcontractors and for the use of private security guards not registered with Baghdad.

The charges allege that KBR managers viewed the use of private security guards as "unacceptable" and were concerned over costs to the U.S. military.

"KBR nonetheless charged the United States for the costs of the unauthorized services," the Justice Department said. KBR officials said in statements published by The Washington Post that the U.S. military was aware of the details.

The Justice Department did'ot reveal the billing amount or the damages sought.

"Defense contractors cannot ignore their contractual obligations to the military and pass along improper charges to the United States," warned Tony West, an assistant attorney general at the Department of Justice.

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The government signed the contract with KBR for civilian logistical support for food services, transportation, laundry and mail for the U.S. military in Iraq.

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