ITT Corp. may lose the final year of its contract to repair U.S. combat vehicles in Kuwait because of poor performance on the current job, an Army official said.
White Plains, N.Y.-based ITT won the contract to repair Army Humvees, Bradley Fighting Vehicles and trucks in October 2004. It runs through September. ITT’s Colorado Springs-based Federal Services Corp. is the unit managing the repair contract.
ITT’s option for the final year is not a “sure thing,” Redding Hobby, an official with the Army Sustainment Command in Rock Island, Ill., said in a telephone interview. ITT has received $638 million so far under this contract, and “hundreds of millions” of dollars more are at stake for the company, he said.
The U.S. Government Accountability Office said Wednesday that ITT wasted millions of dollars by failing to make proper repairs on the U.S. military vehicles. It also blamed the Army for faulty oversight.
