Halliburton has not set a deadline for a decision on whether to keep KBR.
Earlier this year, Halliburton severed ties with KBR ex-chairman Jack Stanley over allegations of financial impropriety.
Scores of drivers told NPR they frequently raised the issue of inadequate armor to KBR managers.
KBR's work in Iraq and Afghanistan has come under extensive criticism from members of Congress.
The 45-page report alleges KBR had improper electrical wiring, grounding and overall electrical problems across Iraq.
CNN: Electric shocks came often at U.S. bases in Iraq, report finds
KBR, part of Halliburton, has lost 42 employees in Iraq and Kuwait and yet stayed put.
"The issue of inadequate armor had been brought up by me and other people to KBR, " Steward says.
Halliburton spun off its much-maligned government contracting division KBR two years ago, and redomiciled its headquarters in Dubai.
DynCorp emerged as a major player in battlefield contracting, benefiting from the troubles faced by KBR and Blackwater.
"KBR has worked diligently to address electrical issues when asked, " the company told CNN in a written statement.
CNN: Shoddy wiring 'everywhere' on Iraq bases, Army inspector says
Mark Smith, Howard's co-worker and Army veteran, said he's applied to work with military contractor KBR in Afghanistan.
"I also believe that this news raises further questions about KBR's support of DML as a whole, " he said.
BBC: Workers at Appledore shipyard already face redundancies
Ryan Maseth, a decorated Green Beret from Pennsylvania, stemmed from failures both by the U.S. military and by KBR.
She pointed out that KBR's government contract is paid for by U.S. taxpayers.
CNN: Sources: Contractor for military committed serious violations
The potential of a KBR loss is feeling a little less remote today.
Maseth's family and that of Christopher Everett, another soldier mentioned in the report, have sued KBR over their deaths.
CNN: 'Multiple' failures led to Iraq electrocution, Pentagon says
Meanwhile, Shaw's peers also fell, as Flour decreased 0.6%, Jacobs Engineering Group 0.9% and URS 0.4%, though KBR increased 0.6%.
The MoD wanted the listing to be postponed, fearing that it could threaten Devonport dockyard which is operated by KBR.
BBC: Workers at Appledore shipyard already face redundancies
"The armor in the KBR trucks was not adequate to protect us at all, " says Terry Steward, of Weiser, Idaho.
But Childs said the majority of buildings on U.S. bases were built and wired by KBR since the U.S. invasion.
CNN: Shoddy wiring 'everywhere' on Iraq bases, Army inspector says
But federal courts in Louisiana and Texas have thrown out the family's claims against the Houston, Texas-based company, KBR announced Tuesday.
But Maseth's mother, who has filed suit against KBR in her son's death, said she was "pleased" by the findings.
CNN: 'Multiple' failures led to Iraq electrocution, Pentagon says
While that violation citation was previously known, the report's precise language and details of KBR's alleged "failures" were not known until now.
CNN: Electric shocks came often at U.S. bases in Iraq, report finds
"The results are revealing and contrary to what KBR and its president have continuously stated over the past year, " Cheryl Harris said.
CNN: 'Multiple' failures led to Iraq electrocution, Pentagon says
In fact, KBR says the army breached the contract by failing to provide the proper force protection, leaving KBR employees in danger.
Nevertheless, KBR charged the U.S. for the cost of the unauthorized service.
He favours a partial stock market flotation of KBR as a way for its parent to cut debt and return to financial health.
"And it is high time that KBR begin to suffer real consequences for what I consider to be blatant contractual noncompliance, " Casey said.
CNN: Electric shocks came often at U.S. bases in Iraq, report finds
Engineers Fluor Corp. ( FLR) and KBR ( KBR) both reported in the last few weeks strong business, often from natural gas related projects.
FORBES: The Engineers -- Fluor and KBR -- a Saner Play on Natural Gas?
The Pentagon was clearly not prepared for dealing with such a large private-sector workforce supporting the troops and KBR needed to protect its people.
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