from The Wall Street Journal
In December, Halliburton's giant Kellogg Brown & Root unit, which provides basic services such as food, postal service and telephones to the 150,000 U.S. troops in Iraq, submitted a detailed estimate to the Pentagon for expected spending in the year starting May 1, based on a list of Army requirements. The company said its costs for the year could exceed $10 billion.
But the Army has budgeted just $3.6 billion to support the KBR- provided services during the same period -- nearly $7 billion less than KBR's estimate.
Since then, the Army has been trimming its requests to close the gap. In an interview, Gen. George Casey said the difference now stands at closer to $4 billion. Still, he said, "To say that we're not worried would not be true. Someone has made some assumptions that have driven the costs through the roof."