Reality Road Check - Haliburton Revisited

The last two debates have included the favorite red herring meme of the Democrats and Michael Moore Morons: Haliburton, Dick Cheney, no bid contracts and profiteering.

I debunked this conspiracy theory WAAAAYYY back in June. As a matter of fact, it was the the third post in the the "Blood for Oil: Busting Conspiracy Theories" series that I did as my first research project on this blog.

If you want the long version so you can get ALL the juicy details, about Haliburton: Doing Business With the Devil Or The Devil Is In The Details, go back in Mr. Peabody's WAAAAY back machine and get the truth.

If you want a trip down Reality Rd where we put the smackdown on the Michael Morons of the red herring, socialist Democrat party, go to the inner sanctum.

Warning! Democrats enter at your own peril. The truth may make you permanently blind, deaf and dumb.

So you decided to take the short cut, huh? That's ok, you won't be disappointed with the scenery. Let's get started on this little jaunt down historical Reality Rd.

All aboard!

I'm your guide, Kat-Missouri, reformed Democrat on the road to Reality.

First stop, Haliburton and the Government. Feast your eyes on this historically fascinating building block. The main building was created in 1919, post World War I, to supply the then booming and new oil drilling business. Supporting drillers with equipment and supplies, later moving into services and management. Strangely, they were founded and operated BEFORE Dick Cheney was born. It's amazing how they were able to survive and thrive without his leadership. Maybe the President of Haliburton was channeling the unborn Dick?

As we drive through the Haliburton complex, you will note the first government program. A lovely Naval Air Station in Corpus Christi, Texas built in 1942 during World War II. Dick was about one years old so we wonder how he was able to pull this contract off. His parents claim he was a precocious child.

Later, in 1962, they purchased Kellog, Root and Brown, a British business, and added them to the group of complex building blocks. Apparently, while Dick was wondering around trying figure out what he was going to do with his life as a 20 year old without a college education, he took the time out to look into the future and realize that KBR would be a handy program to steal....ahhem...Obtain government contracts. Of course, the President in charge of Haliburton was just a figurehead. According to Terry McAuliff, Dick was the brilliant, top secret, puppet master behind the whole deal. Who knew?

By 1968, while Dick was busy getting his fifth deferment from Vietnam and having his first child, he took the time out to orchestrate the Haliburton bid to build NASA storage, pumps and pipes for rocket fuel. What? You don't believe me? I could have sworn that Michael Moore said so. I mean, he did claim that Dick Cheney was the driving force behind Haliburton's government contracts? Surely, Dick was the mastermind behind the whole evil plot?

Never mind. Pay no attention to that man behind the curtain. I am the all knowing and all seeing Wizard of Oil....er Oz!

Now, pay attention as we leave the main Haliburton Complex and turn right down Reality Rd. Here in the blogosphere, all turns are "right" on Reality. Look to the right and you will see the lovely Pentagon. A five sided building that is home to the LOGCAP program. The LOGCAP program was designed in 1985 to assist the military by supplying essential Logistical Civilian Assistance (Program) in the form of food, housing, electricity, telephone services, etc, etc, etc and relieve the military of having to train and retain "soldiers" on the tax payer dollar for non-combat related rolls. This program took over seven years to develop and roll out and touts an almost astronomical savings to the tax payer of 44% less than the same services provided by and managed by the Army, Navy, Marines, Air Force or Guard element.

In 1991, during the First Gulf War, Haliburton and KBR were tapped to put out the oil well fires started by Saddam during his invasion of Kuwait and were contracted to assist with the rebuilding of the Kuwaiti infrastructure. This was all done under a separate bid as the LOGCAP program had yet to be rolled out. During this time, Dick was pretending to be the Secretary of Defense for then President #41, George H. W. Bush. But the Democrats know that he had been secretly running Haliburton and KBR for 70 years (even though he was only 50 years old at the time) and was the driving force behind the government contracts.

Right next to that little gem, you will see the first 1992 LOGCAP agreement, which Haliburton bid on and won to provide services to the troops under then President Clinton. Lasting for four years (per the LOGCAP program regulations), Haliburton supplied food, energy, basic goods, laundry services and built housing and bases for troops in Somalia, Croatia, Bosnia and Hungary. The whole time, Dick tried to act like he was employed at the American Enterprise Institute, but it was obvious to the Democrats that he was still pulling the strings in the Clinton Pentagon and FORCED them to give the contract to Haliburton. My, he is a sly man.

Leaving the Pentagon main campus, we turn right on Reality Rd and continue on to the new Haliburton corporate complex where, finally, Dick came out of the closet and took the reins of the company as the acknowledged CEO. Under his guidance, Haliburton was thanked by then Vice President Al Gore for their role in supporting the troops in 1996 and helping him to build the internet.

What? He didn't build the internet? But, he said so! Oh, yeah...Now I remember, sorry fellow tourists on the road of Reality, it was invented for the military by the DOD. Who knew?

Dick was such an evil genius that he wrangled a $1 million dollar golden parachute and stocks and shares as part of his compensation package, knowing full well it would cause great controversy when he finally achieved his dream of Vice President. But that's a little further down the road. Mainly he took his cue from his heroes like Lee Iacocca at Ford and Welch at GE. If you are going to have the headaches, make sure you get the right amount of pain killer.

As we take another right turn down Reality Rd, look to the left and you will see one of the few remaining structures on the left side of Reality Rd, the 1997 memorial to the LOGCAP bidding process that went down in flames, where Haliburton was out bid by Dynacorp, but then President Clinton's Pentagon threw out the winning bid in favor of retaining Haliburton as an already entrenched and capable provider of services. Rumor has it that the Clinton Pentagon actually thought it was going to cost TOO MUCH MONEY to change providers of services right in the middle of trying to cover troops in Saudi Arabia, Qatar, and assundry other hot spots where troops were stationed. The Democrats were nothing if not prodigious in their efforts to stem the tide of human suffering with the troops and keep Saddam tied down until they could figure out how to dump him from his throne after signing the 1998 Iraqi Liberation Act.

Of course, the Democrats will tell you that Dick was rubbing his hands together in glee, knowing full well that his stock options and shares would go through the roof. Evil capitalist pig.

As we make our next right on Reality Road, we see the empty CEO parking space, where Dick abdicates his throne for the job of second in command, Vice President of the United States of America in 2000 and the Democrats would have you believe that he used his power to once again thrust Haliburton into the limelight. But again, that is for a little further down the road.

Next to the empty parking space, you will note the memorial plaques to Dick's alleged generosity when he sold his stock options and signed his Haliburton shares, to the tune of $8 million, over to a charity trust fund, solely operated by somebody OTHER than Dick. A sign and a peg reads, "Hang Golden Parachute Here". It's almost empty now, but the golden parachute worth $1million dollars was optioned by Dick to be taken in incremental payouts of appx $150k per year until the entire $1 million was paid. Didn't Dick know that getting his just rewards for services rendered was against the SOCIALIST PARTIES...er...Democrats ethical rules? What's that you say? He's a Republican? WELL! I never....

Moving on to the Bank of Dick, you will notice the one way sign on the door. According to the builders of Dick's Bank, the compensation package was built with certain safety measures in mind. By accepting payment of appx. $150k per year instead of the million dollar payout, taxes would remain at the "less than a million" percent range as well as provide Dick and his family with a supplemental income while he received his measly...er..Fine reimbursement as Vice President. The pay outs are not based on the amount of revenue Haliburton actually makes, but in regards to amount of cash available after Haliburton pays it's overhead. This amounts to something like .0001% of all Haliburton cash for the year. The agreement for deferred payment was part of the compensation package originally agreed on by the company in 1995. The company felt this option was important as it kept them from paying out a lump sum against cash reserves at the time. Very common practice amongst companies and business executives.

Other safety measures at the Bank of Dick include and insurance policy against the $1 million dollar compensation package. This insures that Dick gets his compensation regardless of whether Haliburton performs or not; exists or not. This program was to insure that no one could claim that he was giving Haliburton favors to insure his continued pay outs. This little security blanket failed to keep the Democrat reputation thieves from penetrating the security measures with false claims of Vice Presidential misconduct, when, in March 2003, just prior to the invasion of Iraq, the white house was notified that the service agreement with Haliburton under LOGCAP was ready to go whenever they were ready to start the war. The plan, which has existed since the First Gulf War, was called "Inland Pipeline Distribution System" and was prepared to combat the oil well fires should Saddam decide to repeat his 1991, "Kuwait Burning" project in the south of Iraq.

In March 2001, well before the Sept 11 attacks and subsequent invasion of Iraq, Haliburton once again won the LOGCAP agreement from the Pentagon, continued to retain Haliburton as the SOLE SOURCE PROVIDER of the LOGCAP program as it had been for over 11 years. The "Inland Pipeline Distribution System" was part of the existing LOGCAP "Deliberate Planning" program under which LOGCAP made and regularly updates, plans for implementation against any hostile or humanitarian action AROUND THE GLOBE. As the SOLE SOURCE PROVIDER of the LOGCAP program, this fell under Haliburton's contract and included a detailed list of services that Haliburton/KBR would provide, including putting out oil well fires, repairing oil infrastructure damage, etc. This was later extended to upgrading the oil infrastructure and providing services.

The Democrats tried to claim that Haliburton was awarded a "no bid, open ended" contract....

Hey! You! Get away from that steering wheel! We never turn left on Reality Rd. All turns lead to the right! Driver! Throw that Moron off the bus!

Now....Where was I? Ahheem....The Democrats tried to claim that Haliburton was awarded a "no bid, open ended contract" by claiming that the USUAL AND CUSTOMARY Indefinite Demand/Indefinite Quantity agreement (ID/IQ) under the SOLE SOURCE PROVIDER contract was a "no bid, open ended contract". By definition, the ID/IQ had a cap amount of $7bn dollars. This meant that only $7bn worth of services could be contracted on the one agreement without additional justification or oversight OF CONGRESS. If you continue to look at the visitors guide provided to you for your trip down Reality Road, you will see that the first ID/IQ was only worth $3bn and, far from open ended, the types of services and contract amounts for said services and quality guidelines and expectations of quality and financial review were set. The services required under this $3bn dollar contract included, not only the Inland Pipeline plan, but agreements for Haliburton and KBR to provide everything from fuel, shelter, food, logistics, vehicles, workers, you name it, it was part of the program to support the troops and insure there was no environmental or financial disaster waiting at the Iraqi oil wells.

As we continue down Reality Rd, we stop at one of the Reality Check points, where, on the right, you can see that everyone was surprised by the total degradation of the Iraqi infrastructure, not only to the oil infrastructure, but basic services, water, buildings, sewage, you name it, it was in bad shape.

As we continue past the Reality Checkpoint, you will notice that the road veers to the right again where the need for more than $3bn in infrastructure and troop support programs was realized. At which time, the Pentagon, under LOGCAP, wrote another DETAILED ID/IQ for up to $5.5bn for additional repair of Iraqi infrastructure and longterm support of high number of troops that would remain in theater. Amounting to a total of $8.5bn in revenue, of which Haliburton would subcontract out almost 50% as was their right under their agreement.

Now we reach the end of the Reality Rd. If you look to your left, you will see the only other structure that remains standing on the left hand side of Reality Rd after the tragic storms of Hurricane Michael Moore, Tropical Storm Howard Dean, Tornado Terry McAuliffe, and Hurricane F5 Kerry/Edwards struck the Democrat party while they were fast asleep in their beds: a red herring memorial to the Democrat's truth and integrity, topped by a plaque from the GAO (Government Accounting Office) that proclaimed the Haliburton "no bid" contracts legal because the LOGCAP process for Sole Source Provider IS the bidding process.

Thank you for joining us on our historic tour of Reality Road. Please remain seated until the bus has come to a complete stop. If you would like additional information concerning our tour, please stop at our Visitors Center. As we on the Reality Tour like to insure the satisfaction of our customers, we invite you to leave a comment or suggestion in our "Comment Box".

As this tour is a non-profit program, we ask that you take all of your trash with you when you leave. If you would like to donate to the re-education fund for Democrats that don't know how to get out of a storm, please go to Dollars For Democrat Re-Development.

For more information about your guide's trip down the Reality Road, please visit our "Tour Guide" kiosk inside the visitor's center.

Thank you and have a nice day.

Visitor's Center:

Information for the Re-Education of The Reality Impaired

Haliburton and LOGCAP
History of Haliburton
DOD LOGCAP Website
DOD List of Contracts 1995
Rich Lowery: History of LOGCAP and Haliburton
DOD Announces 2001 LOGCAP Winner
Haliburton Asked to Create Oil Fire emergency plan under Inline Pipeline LOGCAP plan
GAO: "No Bid" contract legal April 2004

Dick Cheney
CEO of Haliburton
Dick sales stock and signs away dividends from shares
Dick Receives Compensation From Haliburton
Dick's Insurance Policy Against Partisan Politics

Blood For Oil: Busting Conspiracy Theories

Blood For Oil: Part I
Blood For Oil: part II
Blood for Oil: Part III
Blood for Oil: Part IV

More Reality Checks
Socialist Democrat Party
Fake Statistics: Cheney/Edwards Debate
Michael Moore Talking Points: Pot Holes in the Road to Reality