SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (date of earliest event reported)
March 11, 2004
Halliburton Company
(Exact name of registrant as specified in its charter)
State or other Commission IRS Employer
jurisdiction File Number Identification
of incorporation Number
Delaware 1-3492 No. 75-2677995
1401 McKinney, Suite 2400
Houston, Texas 77010
(Address of principal executive offices)
Registrant's telephone number,
including area code - 713-759-2600
INFORMATION TO BE INCLUDED IN REPORT
Item 9. Regulation FD Disclosure
On March 11, 2004 registrant issued a press release entitled
"Halliburton Sets the Record Straight on KBR's Government Contracts."
The text of the press release is as follows:
HALLIBURTON SETS THE RECORD STRAIGHT ON KBR'S GOVERNMENT CONTRACTS
HOUSTON, Texas - Halliburton today strongly responded to incomplete information
presented to Congressional Democrats regarding KBR's work on government
contracts in the Middle East. On March 10, Congressman Henry Waxman, Ranking
Minority Member of the House Government Reform Committee, published a memorandum
to the Democratic Members of the Committee, reporting on alleged "new
information about Halliburton Contracts".
"We are disappointed, once again, that selective portions of audit reports have
been released publicly even before KBR and the Army have made final reviews of
the information," said Randy Harl, president and chief executive officer, KBR.
"Releases of partial reports are inappropriate because the true and complete
story cannot be conveyed."
In fact, the release of these reports could violate established Federal Policy.
"Once again, we have not been given a chance to respond to accusations before
they are released publicly. We believe that every point in Mr. Waxman's letter
has a reasonable explanation or could be refuted outright."
For example, the facts show that KBR delivered fuel to Iraq at the best value,
the best price, and the best terms and in ways completely consistent with
government procurement policies. KBR's client, the US Army Corps of Engineers,
provided approval and direction for KBR to continue this important work so the
people of Iraq would have fuel for transportation, cooking and heating. The
points in Mr. Waxman's memo state that a round trip for fuel transportation can
be completed in two-and-a-half days. The facts show that, on average, a round
trip to Baghdad generally takes up to five times as long to complete, due to
threat and security conditions. Therefore, actual transportation costs are
higher than represented in Mr. Waxman's letter.
"A call to Halliburton would have provided context to the discussion," added
Harl.
Similarly, Mr. Waxman quotes a number that changed in cost estimates for a task
order. The facts show that the scope of this task order was reduced, and costs
were lowered accordingly.
"Of course, cost estimates change because the scope of work requirements are
dynamic and ever changing and it would be inappropriate for anyone to imply
otherwise," said Harl.
In addition, a comment was made about the food services estimates and costs. A
closer examination of KBR's response to the DCAA audit would show that KBR
disclosed that vendors were terminated by KBR for default. Without all of the
facts, it is inappropriate to criticize KBR.
Representatives of DCAA were present when the format and compliance schedule was
agreed to with KBR's client. At that meeting, all parties agreed that the task
orders need to be completed and provided to the government in a timely manner.
KBR is ahead of that schedule and we have completed the first analysis for this
report, having delivered it this week.
"This is an important piece of information that was left out of the letter from
Mr. Waxman," stated Harl.
"We can take criticism when it is justified because we are our harshest
critics," explained Harl. "It's the only way to improve. Criticism is not
failure. We pledged to cooperate and we have fully cooperated with the DCAA and
all of the regulatory agencies overseeing our contracts.
"Oversight of the public's money is important --especially during times of war,"
Harl added. "You must supply the best services and value at the best price
possible often under pressure. That is why we at Halliburton are especially
troubled when the regulatory processes created to ensure public confidence in
the procurement system are bypassed for a few sensational headlines.
"All contractors involved in the effort freeing the Iraqi people are, of course,
subject to oversight," cautioned Harl. All government entities and government
contractors need to review their performance, learn from the experience and look
for areas of improvement.
Halliburton continues to be a good steward of taxpayer money during Operation
Iraqi Freedom, just as the company has been for the past 60 years of military
support.
"We are proud of our work in the Middle East today," Harl stated. "Our very
talented team of employees is making a difference in the lives of U.S. soldiers,
making them feel a little closer to home.
"We will continue to support the soldiers even though the price for this mission
is the cost of having to defend ourselves at home," concluded Harl.
For more than 60 years, during both Democrat and Republican administrations,
Halliburton has a record of service to the defense of the United States. We
built war ships for the Navy in World War II, and we recently supported troops
in Somalia, Rwanda and Haiti. In the first Gulf War, we helped bring half the
oil wells under control in Kuwait. Halliburton employees are prepared to meet
the challenge regardless of the difficulties and risks involved.
Halliburton, founded in 1919, is one of the world's largest providers of
products and services to the petroleum and energy industries. The company serves
its customers with a broad range of products and services through its Energy
Services and Engineering and Construction Groups. The company's web site can be
accessed at www.halliburton.com.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
HALLIBURTON COMPANY
Date: March 11, 2004 By: /s/ Margaret E. Carriere
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Margaret E. Carriere
Vice President and Secretary