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paulnotbilly
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http://news.bbc.co.uk/1/hi/business/5174270.stm
US Army 'to end Halliburton deal'
Halliburton shares have fallen almost 1% on reports the US Army has ended its lucrative contract with the group.
The army may now replace its biggest contractor with three firms when the multi-billion dollar deal ends in September. Halliburton can also rebid.
The Texas-based conglomerate supplies logistical support to US troops.
Halliburton, once led by US vice president Dick Cheney, has come under fire for landing expensive, non-competitive government contracts.
The contracts cover a wide number of services for the army from providing food and shelter for troops to communications services.
According to a report in the Washington Post, the Pentagon has decided it no longer wants to "place all our eggs in one basket".
By splitting the contracts and offering them to three other companies, the army believes it will get better value for money.
According to the Post, Halliburton was paid more than $7bn by the US Army last year.
The report added that another contract would also be put out to tender for a fourth firm to monitor the activities of the other three.
Army spokesman Randy King told the newspaper that as well as offering better prices, multiple contractors would also mean more accountability and transparency.
A further 11 contracts concerning reconstruction in Iraq are set to expire in August, including a $1.2bn deal for Halliburton to restore oil services in southern Iraq.
News of the decision pushed shares in Halliburton down almost 1% to $74.85 in midday trade in New York.
I'm really gutted for them, I experienced some of their 'high quality' meals in 2003, an experience I hope to never repeat. I had to keep reminding mysely 'peas are green, not grey; sweetcorn is yellow, not grey'
US Army 'to end Halliburton deal'
Halliburton shares have fallen almost 1% on reports the US Army has ended its lucrative contract with the group.
The army may now replace its biggest contractor with three firms when the multi-billion dollar deal ends in September. Halliburton can also rebid.
The Texas-based conglomerate supplies logistical support to US troops.
Halliburton, once led by US vice president Dick Cheney, has come under fire for landing expensive, non-competitive government contracts.
The contracts cover a wide number of services for the army from providing food and shelter for troops to communications services.
According to a report in the Washington Post, the Pentagon has decided it no longer wants to "place all our eggs in one basket".
By splitting the contracts and offering them to three other companies, the army believes it will get better value for money.
According to the Post, Halliburton was paid more than $7bn by the US Army last year.
The report added that another contract would also be put out to tender for a fourth firm to monitor the activities of the other three.
Army spokesman Randy King told the newspaper that as well as offering better prices, multiple contractors would also mean more accountability and transparency.
A further 11 contracts concerning reconstruction in Iraq are set to expire in August, including a $1.2bn deal for Halliburton to restore oil services in southern Iraq.
News of the decision pushed shares in Halliburton down almost 1% to $74.85 in midday trade in New York.
I'm really gutted for them, I experienced some of their 'high quality' meals in 2003, an experience I hope to never repeat. I had to keep reminding mysely 'peas are green, not grey; sweetcorn is yellow, not grey'