"At this time," Hall said, "we understand the bills are currently being paid in full."
Hall said she did not understand the change.
Congressional Democrats have accused the Pentagon of going easy on KBR, which has received about $6 billion for work it has done in Iraq and Kuwait under the logistical services contract known as LOGCAP. Halliburton has also received at least $2.5 billion for helping Iraq rebuild its oil industry. Government investigators and Defense Department auditors have repeatedly raised questions about whether KBR overcharged for food, housing and fuel and kept proper records.
Rep. Henry A. Waxman (D-Calif.) has questioned whether Vice President Cheney, who was Halliburton's chief executive before reaching office, played any role in helping the company. Cheney's staff has derided such suggestions as politically motivated.
In response to a new Defense Department audit that described Halliburton's cost estimating system as inadequate, Waxman said last week that the Pentagon is not doing enough to hold the company accountable.
"The Bush administration is giving Halliburton special treatment yet again," he said in a written statement. "Even after eight critical audit reports by three different government agencies, the Pentagon is still waiving procurement rules and extending deadlines for Halliburton to submit accurate cost information."
Theis, the Army Materiel Command spokeswoman, dismissed suggestions that Halliburton is receiving special treatment.
Halliburton officials said that even if the government decides next week to withhold money from new invoices, it would not have a significant impact on the company's liquidity. That's because Halliburton would then withhold payments to subcontractors. "At the end of the day, we do not expect this will have a significant or sustained impact on liquidity," said Cris Gaut, Halliburton's chief financial officer.
