WASHINGTON - The Army's primary support contractor in Iraq is being warned by Pentagon auditors to cut its work force there or face nearly $200 million in penalties for keeping thousands too many on the payroll.
The Houston-based KBR Inc., responsible for everything from mail and laundry to housing and meals, has increased employee levels while U.S. troops steadily leave the country after more than six years of war, the audit says. As a result, the U.S. government is paying far more in labor costs in Iraq than it should as military resources are shifted to Afghanistan.

DynCorp International, the Falls Church, Va., provider of mission critical services to the U.S. military, got good news Thursday from Houston rival KBR, which said it would not be protesting the recent loss of work supporting American troops in Afghanistan to DynCorp and Fluor Group.
"We recently met with the customer for a debrief of the selection criteria and the decision metrics for the awards," said KBR chief William Utt on KBR's Thursday conference call. "After the debrief we decided KBR will not protest the outcome of the awards."
The Houstonian Hotel is an elegant, secluded resort set on an 18-acre
wooded oasis in the heart of downtown Houston. Two weeks ago, David
Lesar, CEO of the once notorious energy services corporation
Halliburton, spoke to some 100 shareholders and members of senior
management gathered there at the company's annual meeting. All was
remarkably staid as they celebrated Halliburton's $4 billion in
operating profits in 2008, a striking 22% return at a time when many
companies are announcing record losses.
President Obama will almost certainly touch down in Baghdad and Kabul in Air Force One sometime in the coming year to meet his counterparts in Iraq and Afghanistan, and he will just as certainly pay a visit to a U.S. military base or two.
A new commission examining waste and corruption in wartime contracts got a grim report from government watchdogs who say poor planning, weak oversight and greed combined to soak U.S. taxpayers and undermine American forces in Iraq and Afghanistan.
Stuart Bowen, the special inspector general for Iraq reconstruction, says the U.S. has committed nearly $51 billion for a wide array of projects in Iraq - from training the Iraqi army and police to rebuilding the country's oil, electric, justice, health and transportation sectors.
UNITED NATIONS - The devastating Israeli firepower, unleashed largely on Palestinian civilians in Gaza during two weeks of fighting, is the product of advanced U.S. military technology.
The U.S. weapons systems used by the Israelis -- including F-16 fighter planes, Apache helicopters, tactical missiles and a wide array of munitions -- have been provided by Washington mostly as outright military grants.
WASHINGTON - Pundits these days warn of a Middle East arms race if Iran brings its alleged nuclear weapons programme to fruition, while others fear that missile defence in Eastern Europe could spark escalation involving Russia.
But despite all the fear in Washington, it turns out that the U.S. need look no farther than its own shores to find the greatest single source of weapons proliferation around the globe.
SOUTH NASHUA, N.H. - Across the nation, companies are lopping off hundreds of thousands of jobs, retailers are shuttering stores, and automakers are tottering on the edge of bankruptcy.
But here in the Merrimack River Valley, and over the state line at several industrial sites around Massachusetts, defense contractor BAE Systems is hoisting "Help Wanted" signs.
GOMA - After two hours, drenched in sweat, he tugs on a cord tied to his waist and is pulled back to the surface, carrying with him a 30 kilogram sack of raw columbium-tantalite ore.
Few people have heard of this rare mineral, known as coltan, even though millions of people in the developed world rely on it. But global demand for the mineral, and a handful of other materials used in everything from cellphones to soup tins, is keeping the armies of Congo's ceaseless wars fighting.
UNITED NATIONS
- From Nobel laureates to human rights activists to former military
commanders, calls are on the rise for the international community to
stand up against those who are making billions of dollars by selling
illicit arms around the world.
"It is time to end the slaughter," said Desmond Tutu,
the Noble Peace Prize winning archbishop of Cape Town, South Africa, in
a statement urging the 192-member UN General Assembly to adopt the
proposed Arms Trade Treaty.