On February 7, 2007, the Committee held a hearing to examine the use of private military contractors in Iraq. In response to Chairman Waxman’s inquiries, the Defense Department announced that KBR had improperly billed the government for private security services under the LOGCAP contract and that the Department would withhold $19.6 million in unjustified charges. Since then, KBR has disclosed to investors that up to $400 million in payments to the LOGCAP contract could be in jeopardy.
