[NYTr] Craven House Dems Slobber All Over KBR in "Warm Welcome"

[All the News That Doesn't Fit]

Houston Chronicle - Jul 27, 2007
http://www.chron.com/disp/story.mpl/business/5004399.html

House Democrats extend warm welcome to KBR

By DAVID IVANOVICH

WASHINGTON — A representative from giant military contractor KBR got a
rare friendly reception Thursday from House Democrats during a hearing
examining construction problems at the $592 million U.S. Embassy being
built in Iraq.

KBR has come under fire in Congress and elsewhere regarding possible
overcharges and sloppy paperwork relating to its contract to provide
logistical support to the military in Iraq. The company has said it is
cooperating with the government in trying to address those concerns.

Congressional Democrats also have been skeptical about KBR's military
contracts, in no small part because Dick Cheney headed KBR's former
parent, Halliburton, before he became vice president.

No Democrat in the House has been more dogged about keeping tabs on
KBR's performance than Rep. Henry Waxman, D-Calif., chairman of the
House Oversight and Government Reform Committee.

So it was an odd day Thursday when Karl Demming, KBR's technical
professional leader for specialties in Baghdad, appeared before
Waxman's committee to testify about problems with the electrical work
performed by State Department contractor First Kuwaiti General Trade
and Contracting Co. in a housing facility for embassy security guards.

Kitchen crews had been in for a surprise when trying to turn on
appliances to begin serving meals for the 1,200 people who would be
housed in the facility: Workers suffered minor electrical shocks and
electric wires began to melt, Demming said.

Placing blame
With Democrats prodding him on and Republicans scrambling to downplay
the importance of his testimony, Demming told the panel that KBR
officials investigating the incident learned the contractor had
installed counterfeit wiring.

Describing First Kuwaiti's performance as "OK," Demming said he would
have concerns about the firm's work on the full embassy project.

The Kuwaiti company did not send an official to testify. But the
Associated Press reported that the company said in a statement said it
was doing a good job against the difficult backdrop of rising violence.

The State Department's Bureau of Overseas Building Operations had tried
to blame KBR for the incident.

"The issues with the ... wiring melting was a function of KBR
installing considerable (sic) more equipment ... than that originally
designed and anticipated," according to State Department cables
released by the committee.

Demming said officials knew what extra equipment KBR staffers would be
bringing over to the kitchen.

KBR spokeswoman Heather Browne said Thursday that the company's initial
assessments determined the problems were not related to its work and
that subsequent inspection reports confirmed that determination.

Charles Williams, director and chief operating officer of the State
Department's Overseas Building Operations, argued the guard camp is
only a temporary facility that would not be subject to the same kind of
rigorous inspection as a permanent facility.

And he insisted First Kuwaiti officials have never been shy about
fixing problems when asked.

"I've never seen a perfect project," Williams said.

Williams assured lawmakers the world's largest embassy will open in
September — on time and on budget.

The goodwill is short-lived
Waxman applauded KBR's cooperation with his committee. Besides agreeing
to have Demming testify, KBR officials provided documents and briefed
committee staffers. "They took these steps even though they know that I
have been outspoken about my concerns about other KBR projects in
Iraq," Waxman said.

Rep. Darrell Issa, R-Calif., said Democrats were finally treating KBR
as it deserved to be, as a competent, knowledgeable contractor.

But he predicted: "The sweet-talking about KBR is going to last exactly
one hearing."

Copyright 2007 Houston Chronicle Washington Bureau