Kellogg Brown & Root Services, Inc.

Material Facts

• The government awarded KBRSI a cost-reimbursement, indefinite delivery, indefinite quantity contract for Iraqi oil infrastructure restoration and related support services.
• The contract incorporated FAR 52.250-1, Alternate I, the White Memo, and Enclosure A defining unusually hazardous risks.
• Task Order No. 0003 directed KBRSI to repair oil wells, pipelines, pump stations, and associated infrastructure, including the Qarmat Water Treatment Plant.
• Sodium Dichromate was present in powder form in the soil and other areas of the plant.
• Personnel at the plant were exposed to Sodium Dichromate by touch or inhalation over a period of time.
• Sodium Dichromate contains hexavalent chromium and was described as toxic and carcinogenic.
• KBRSI encapsulated Sodium Dichromate at certain plant locations, and plant operations were later shut down for a period because of personnel exposure and related testing.
• Military personnel filed claims against KBRSI alleging injuries from exposure to Sodium Dichromate at the plant.
• KBRSI defended the lawsuits and incurred outside legal costs.
• The government denied KBRSI's indemnification requests and did not pay invoices for some of the outside legal costs.

Parties

Appellant

Kellogg Brown & Root Services, Inc.

Respondent Agency

U.S. Army Corps of Engineers

Contracting Agency

U.S. Army Corps of Engineers

Contract Number

DACA63-03-D-0005