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The Complex Task of Coordinating Contracts Amid the Chaos and the Rebuilding of Iraq

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The Complex Task of Coordinating Contracts Amid the Chaos and the Rebuilding of Iraq UNPRECEDENTED CHALLENGES: THE COMPLEX TASK OF COORDINATING CONTRACTS AMID THE CHAOS AND THE REBUILDING OF IRAQ HEARINGS BEFORE THE COMMITTEE ON GOVERNMENT REFORM HOUSE OF REPRESENTATIVES ONE HUNDRED EIGHTH CONGRESS SECOND SESSION MARCH 11, JUNE 15, AND JULY 22, 2004 Serial No. 108–213 Printed for the use of the Committee on Government Reform ( Available via the World Wide Web: http://www.gpo.gov/congress/house http://www.house.gov/reform VerDate 11-MAY-2000 10:37 Nov 17, 2004 Jkt 000000 PO 00000 Frm 00001 Fmt 6011 Sfmt 5011 D:\DOCS\96407.TXT HGOVREF1 PsN: HGOVREF1 VerDate 11-MAY-2000 10:37 Nov 17, 2004 Jkt 000000 PO 00000 Frm 00002 Fmt 6011 Sfmt 5011 D:\DOCS\96407.TXT HGOVREF1 PsN: HGOVREF1 UNPRECEDENTED CHALLENGES: THE COMPLEX TASK OF COORDINATING CONTRACTS AMID THE CHAOS AND THE REBUILDING OF IRAQ VerDate 11-MAY-2000 10:37 Nov 17, 2004 Jkt 000000 PO 00000 Frm 00003 Fmt 6019 Sfmt 6019 D:\DOCS\96407.TXT HGOVREF1 PsN: HGOVREF1 VerDate 11-MAY-2000 10:37 Nov 17, 2004 Jkt 000000 PO 00000 Frm 00004 Fmt 6019 Sfmt 6019 D:\DOCS\96407.TXT HGOVREF1 PsN: HGOVREF1 UNPRECEDENTED CHALLENGES: THE COMPLEX TASK OF COORDINATING CONTRACTS AMID THE CHAOS AND THE REBUILDING OF IRAQ HEARINGS BEFORE THE COMMITTEE ON GOVERNMENT REFORM HOUSE OF REPRESENTATIVES ONE HUNDRED EIGHTH CONGRESS SECOND SESSION MARCH 11, JUNE 15, AND JULY 22, 2004 Serial No. 108–213 Printed for the use of the Committee on Government Reform ( Available via the World Wide Web: http://www.gpo.gov/congress/house http://www.house.gov/reform U.S. GOVERNMENT PRINTING OFFICE 96–407 PDF WASHINGTON : 2004 For sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512–1800; DC area (202) 512–1800 Fax: (202) 512–2250 Mail: Stop SSOP, Washington, DC 20402–0001 VerDate 11-MAY-2000 10:37 Nov 17, 2004 Jkt 000000 PO 00000 Frm 00005 Fmt 5011 Sfmt 5011 D:\DOCS\96407.TXT HGOVREF1 PsN: HGOVREF1 COMMITTEE ON GOVERNMENT REFORM TOM DAVIS, Virginia, Chairman DAN BURTON, Indiana HENRY A. WAXMAN, California CHRISTOPHER SHAYS, Connecticut TOM LANTOS, California ILEANA ROS-LEHTINEN, Florida MAJOR R. OWENS, New York JOHN M. MCHUGH, New York EDOLPHUS TOWNS, New York JOHN L. MICA, Florida PAUL E. KANJORSKI, Pennsylvania MARK E. SOUDER, Indiana CAROLYN B. MALONEY, New York STEVEN C. LATOURETTE, Ohio ELIJAH E. CUMMINGS, Maryland DOUG OSE, California DENNIS J. KUCINICH, Ohio RON LEWIS, Kentucky DANNY K. DAVIS, Illinois JO ANN DAVIS, Virginia JOHN F. TIERNEY, Massachusetts TODD RUSSELL PLATTS, Pennsylvania WM. LACY CLAY, Missouri CHRIS CANNON, Utah DIANE E. WATSON, California ADAM H. PUTNAM, Florida STEPHEN F. LYNCH, Massachusetts EDWARD L. SCHROCK, Virginia CHRIS VAN HOLLEN, Maryland JOHN J. DUNCAN, JR., Tennessee LINDA T. SANCHEZ, California NATHAN DEAL, Georgia C.A. ‘‘DUTCH’’ RUPPERSBERGER, Maryland CANDICE S. MILLER, Michigan ELEANOR HOLMES NORTON, District of TIM MURPHY, Pennsylvania Columbia MICHAEL R. TURNER, Ohio JIM COOPER, Tennessee JOHN R. CARTER, Texas BETTY MCCOLLUM, Minnesota MARSHA BLACKBURN, Tennessee ——— PATRICK J. TIBERI, Ohio BERNARD SANDERS, Vermont KATHERINE HARRIS, Florida (Independent) MELISSA WOJCIAK, Staff Director DAVID MARIN, Deputy Staff Director/Communications Director ROB BORDEN, Parliamentarian TERESA AUSTIN, Chief Clerk PHIL BARNETT, Minority Chief of Staff/Chief Counsel (II) VerDate 11-MAY-2000 10:37 Nov 17, 2004 Jkt 000000 PO 00000 Frm 00006 Fmt 5904 Sfmt 5904 D:\DOCS\96407.TXT HGOVREF1 PsN: HGOVREF1 C O N T E N T S Page Hearing held on: March 11, 2004 .......................................................................................... 1 June 15, 2004 ............................................................................................. 177 July 22, 2004 ............................................................................................. 313 Statement of: Kelman, Steven, Weatherhead professor of public management, Harvard University, John F. Kennedy School of Government ................................. 570 Lanzilotta, Lawrence, Principle Deputy and Acting Under Secretary of Defense (Comptroller), U.S. Department of Defense; Deidre Lee, Direc- tor, Defense Procurement and Acquisition Policy, U.S. Department of Defense; Tina Ballard, Deputy Assistant Secretary of the Army (policy and procurement), U.S. Department of Defense; General Paul Kern, Commanding General, U.S. Army Materiel Command; Brigadier Gen- eral Robert Crear, Commander, Southwestern Division, U.S. Army Corps of Engineers; and William H. Reed, Director, Defense Contract Audit Agency, U.S. Department of Defense ................................................ 235 Neffgen, Alfred, chief operation officer, KBR government operations, Americas Region; William Walter, director of government compliance, KBR government operations; Charles ‘‘Stoney’’ Cox, vice president and past Restore Iraqi Oil [RIO] Project director, KBR government oper- ations; and Keith Richard, regional project manager, Theater Transpor- tation Mission, LOGCAP III, KBR government operations ...................... 507 Strock, Major General Carl A., Director of Civil Works, U.S. Army Corps of Engineers, U.S. Department of Defense; General Paul J. Kern, Com- manding General, U.S. Army Materiel Command, U.S. Department of Defense; Major General Wade H. McManus, Jr., Commanding Gen- eral, U.S. Army Field Support Command, U.S. Department of Defense; Tina Ballard, Deputy Assistant Secretary of the Army (policy and pro- curement), U.S. Department of Defense; Lewis Lucke, Deputy Assistant Administrator, U.S. Agency for International Development; Dov S. Zakheim, Under Secretary of Defense (Comptroller) and Chief Finan- cial Officer, U.S. Department of Defense; William H. Reed, Director, Defense Contract Audit Agency, U.S. Department of Defense; and Rear Admiral David Nash, USN (ret.), Director, Iraq Program Management Office, Coalition Provisional Authority ....................................................... 25 Walker, David M., Comptroller General of the United States, accom- panied by William T. Woods, Director, Acquisition and Sourcing Man- agement, U.S. General Accounting Office, and Neal P. Curtin, Director, Defense Capabilities and Management, U.S. General Accounting Office 197 Warren, James, former truck driver, KBR; David Wilson, former truck driver, KBR; and Marie deYoung, former logistics specialist, KBR ......... 364 Letters, statements, etc., submitted for the record by: Ballard, Tina, Deputy Assistant Secretary of the Army (policy and pro- curement), U.S. Department of Defense, prepared statements of........... 56, 261 Blackburn, Hon. Marsha, a Representative in Congress from the State of Tennessee: Copy of subcontract ................................................................................... 399 Resume of Ms. deYoung ............................................................................ 393 Burton, Hon. Dan, a Representative in Congress from the State of Indi- ana, prepared statement of .......................................................................... 585 Clay, Hon. Wm. Lacy, a Representative in Congress from the State of Missouri, prepared statement of .................................................................. 141 Crear, Brigadier General Robert, Commander, Southwestern Division, U.S. Army Corps of Engineers, prepared statement of ............................. 274 (III) VerDate 11-MAY-2000 10:37 Nov 17, 2004 Jkt 000000 PO 00000 Frm 00007 Fmt 5904 Sfmt 5904 D:\DOCS\96407.TXT HGOVREF1 PsN: HGOVREF1 IV Page Letters, statements, etc., submitted for the record by—Continued Davis, Chairman Tom, a Representative in Congress from the State of Virginia: Memo from Ms. deYoung to Mr. Lesar .................................................... 498 Prepared statements of ..................................................................... 5, 181, 321 Washington Post article dated July 20, 2004 ......................................... 316 Davis, Hon. Jo Ann, a Representative in Congress from the State of Virginia, prepared statement of ................................................................... 146 deYoung, Marie, former logistics specialist, KBR, prepared statement of ..................................................................................................................... 375 Harris, Hon. Katherine, a Representative in Congress from the State of Florida, prepared statement of ................................................................ 308 Kelman, Steven, Weatherhead professor of public management, Harvard University, John F. Kennedy School of Government, prepared state- ment of ........................................................................................................... 573 Kern, General Paul J., Commanding General, U.S. Army Materiel Com- mand, U.S. Department of Defense, prepared statements of .................. 42, 267 Lanzilotta, Lawrence, Principle Deputy and Acting Under Secretary of Defense (Comptroller), U.S. Department of Defense: Memo dated June 7, 2004 ......................................................................... 237 Prepared statement of ............................................................................... 240 Lee, Deidre, Director, Defense Procurement and Acquisition Policy, U.S. Department of Defense, prepared statement of ......................................... 255 Lucke, Lewis, Deputy Assistant Administrator, U.S. Agency for Inter- national Development, prepared statement of ........................................... 64 Maloney, Hon. Carolyn B.,
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