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A Term Paper On "Halliburton", This Paper Deals With The Privatization Of Our Military And Some Of Its Effects.

2225 words - 9 pages

AbstractIn the last 20 years, the United States has come to rely on more private companies to produce equipment and provide certain services for its armed forces than ever before. This has come to include taking certain jobs once performed by uniformed personnel and turning them over to private companies to "free-up" personnel and money. Freeing up this money has allowed the government to downsize its large military infrastructure in order to pay for modernizing equipment, better training, and other significant matters that were once neglected. This has also allowed the government to place many of these costs off of its defense budget and fund them with other monies taken from other government sources. It makes sense fiscally when looked at on paper. But does all this privatization really save the government as much money as they say it does? Are the companies accountable as if they were in the military command structure when charging the military for goods and services? What happens if they are?Within the last 3 years, Halliburton has come under heavy public and political criticism for its pricing and profit practices, allegations of corruption, and connections to Vice President Dick Cheney. I will take a look into these allegations and present the facts as they have been reported.HalliburtonToday, there are at least 100 companies, and still growing, that provide services to the United States military in some capacity or another. Halliburton with its subsidiaries, Kellogg, Brown, and Root (KBR) and Energy Services Group (ESG), is by far one of the largest military contractors in the world. It employs 100,000 people worldwide to sustain its contractual obligations to support military personnel and equipment around the globe (Halliburton, unknown date).Within the past 60 years, Halliburton has worked to establish its presence as a large scale military contractor that provides construction, life-cycle management services, fuel transportation, food preparation, and numerous other services deemed critical to supporting our military. Its biggest brake came in the 1990s when President Clinton and Congress started the process of outsourcing or privatizing many unnecessary functions once performed by the military to save money and free up personnel for more important duties. This was an ideology first introduced by President Ronald Reagan in the 1980s to cut back on costs associated with running daily functions that could be performed more efficiently and cheaper by the private sector. It would in turn free up resources for more equipment, training, personnel, and other programs that more deserved the funding. At least that's the way it's suppose to work. It turned out it was not the case at all with some companies. Some companies were able to receive government contracts without much competition. Others were able to inflate their costs and overcharge the government for millions of dollars. A few even lost millions of dollars worth of equipment and...

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