Andrew Tilghman June 17, 2008, 6:40 PM

We pointed out this morning the New York Times story that suggested KBR was over charging the military on Iraq-related contracts and threatening to cut off services to combat troops if the bills weren’t paid.

Now here’s another one about KBR’s billing. This time from the Department of Defense Inspector General. And it looks at the company’s role in the clean-up efforts after Hurricane Katrina.

The Houston Chronicle reports:

The Pentagon Inspector General said he could find no documentation in Navy contracting files to back up KBR claims it paid fair and reasonable prices to subcontractors that served meals in New Orleans.

“The prices KBR agreed to pay were greatly inflated,” the 86-page audit said.

“The Navy paid approximately $4.1 million for meals and services we calculate should have cost $1.7 million, more than a $2.3 million difference,” said the audit, signed by Assistant Inspector General for Acquisition Management Richard Jolliffe.

… Altogether, the audit requested that the Navy seek refunds of at least $8.5 million for “inappropriate” payments to KBR.

Defense Department, Iraq Contractors