Fluor Drops Protest of $500 Million KBR Iraq Support Contract

Fluor Corp. (FLR) has dropped a protest filed last month with the Government Accountability Office challenging a $500 million award to KBR Inc. (KBR) for a logistics support contract in Iraq, according to KBR and a government website.

Irving, Texas-based Fluor withdrew its protest Wednesday, according to the GAO’s website and KBR spokeswoman Gabriela Segura in an e-mail. Fluor spokesman Keith Stephens said the company had no comment.

The contract was on hold until the protest was resolved. The hold has been lifted, said Army Sustainment Command spokeswoman Linda Theis.

Houston, Texas-based KBR announced August 2 it will continue for the State Department its previous Iraq role providing base support after U.S. troops are scheduled to withdraw in December.

KBR will support the State Department’s embassy staff, including utilities management, fire fighting, food services, laundry, shuttle bus services, fuel and postal operations.

The one-year contract includes a one-year option.

KBR has not received any similar contracts for Afghanistan.

To contact the reporter on this story: Tony Capaccio in Washington at acapaccio@bloomberg.net

To contact the editor responsible for this story: Mark Silva at msilva34@bloomberg.net