Defense Base Act Compensation Blog

The Modern Day DBA Casualty

KBR Loses $24.1 Million Bonus Over Green Beret Ryan Maseth’s Death in Iraq

Posted by defensebaseactcomp on June 9, 2010

By Tony Capaccio  Bloomberg

June 9 (Bloomberg) — KBR Inc., the largest contractor in Iraq, lost all of its potential bonus — $24.1 million — for the first four months of 2008 because it was found partly to blame for the accidental electrocution of a Green Beret.

This is the first time KBR lost its entire performance fee since the company won the contract in 2001 to support U.S. troops, Army Contracting Command spokesman Daniel Carlson said.

Houston-based KBR has received orders from this contract totaling $35.7 billion to date. Its profit comes from a base fee of 1 percent and periodic bonuses based on criteria such as quality of work and its control over cost and schedule.

Staff Sergeant Ryan Maseth of the 5th Special Forces Group was electrocuted while showering on Jan. 2, 2008, in part because the shower’s electrical pump wasn’t properly grounded when installed less than two years before, the Pentagon inspector general reported on July 27, 2009.

The report criticized the Army’s oversight of Maseth’s compound, saying his death “was the catastrophic result of the failure of multiple systems exposing U.S. personnel to unnecessary risk.”  Read the full story her

KBR loses $84.7M in Award Fees for LOGCAP III in Iraq

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