Halliburton Challenged on Iraq FS Contract

FM Staff

IAP Worldwide Services, Inc., is challenging Halliburton for part of the military contract—reportedly worth up to $50 billion—to provide food and shelter to U.S. troops in Iraq and Afghanistan. IAP is owned by the investment firm Cerberus Capital Management LP, which is led by former U.S. Treasury Secretary John Snow as chairman and also includes former executives from Halliburton subsidiary Kellogg, Brown & Root (KBR) as top executives. KBR currently holds the sole contract, which the U.S. Army will split into three separate bids, each with a reported value of around $50 billion over 10 years. KBR is also bidding for each of the contracts, which are expected to be awarded before the end of the year.