Private security contract in Iraq. After many denials, US Army confirms Blackwater is Huge "War" Profiteer

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The secretary of the Army on Tuesday wrote two Democratic lawmakers that the Blackwater USA contract was part of a huge military support operation by run by Halliburton subsidiary KBR.

Vice President Dick Cheney ran Halliburton before he became vice president.

Several times last year, Pentagon officials told inquiring lawmakers they could find no evidence of the Blackwater contract. Blackwater, of Moyock, North Carolina, did not respond to several requests for comment.

The discovery shows the dense world of Iraq contracting, where the main contractor hires subcontractors who then hire additional subcontractors. Each company tacks on a charge for overhead, a cost that works its way up to U.S. taxpayers.

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