3. KBR Overcharges for Hurricane Relief (Department of Defense IG, 2008)
According to a Department of Defense IG report, contractor giant KBR overcharged the U.S. Navy on contracts to provide support services in the aftermath of Hurricanes Katrina and Ivan. KBR charged the Navy about $4.1 million for services and meals, when they should have cost $1.7 million. KBR’s subcontractor reportedly served fewer than half of the 227,500 meals KBR paid for over the 34-day contract performance period. The rest of the meals were thrown out because they could not be stored at a safe temperature.
Image of Hurricane Katrina aftermath by Flickr user Loco Steve