The Corps of Engineers has delayed the award of two contracts to continue rebuilding Iraq's oil infrastructure and doubled the contracts' maximum value, to $2 billion.

In an Oct. 29 statement, the Corps said it now plans to award the two contracts--one for work in southern Iraq, the other in the country's northern section--in 30 to 60 days. The Corps had issued a request for proposals on the contracts in June. In an Oct. 6 interview, Lt. Gen. Robert B. Flowers, the chief of engineers, had told ENR an announcement was expected on the contracts about Oct. 24.

The Corps now says the northern Iraq contract's maximum value is $800 million; the southern contract is pegged at $1.2 billion. In June, the Corps had said the maximum size of each contract would be $500 million. The two contracts are follow-ons to one awarded to Halliburton Co.'s KBR unit in March.

advertisement ...

Scott Saunders, a Corps spokesman, says, "It became clear as we finished some of the assessments in the country that there was more work than we anticipated when we announced the solicitation in June."

The Corps says that the scope of the contracts--that is, the types of tasks included--will not change, but the amount of work to be done will increase. The tasks include extinguishing oil well fires, environmental assessment and cleanup at oil sites, assessments of oil infrastructure conditions, engineering, design and construction needed "to restore the infrastructure to a safe operating condition." It also includes maintenance on oilfield facilities, pipelines and refineries; acquiring, importing and distributing fuel; and technical assistance in fuel marketing and sales and consulting to the Iraqi oil companies.

The contracts fall under the Corps' Southwestern Division, which is commanded by Brig. Gen. Robert Crear. Crear also is leading Task Force RIO, the effort to rebuild the Iraq oil infrastructure.

House and Senate appropriators are meeting to work out a final version of a supplemental spending bill that is expected to include more than $1 billion for Iraqi oilfield work.

Both contracts are indefinite delivery-indefinite quantity, cost-plus award fee, and extend for 24 months.

More information about the revised contracts is available on the Corps' Web page at www.usace.army.mil, under the label "USACE Iraq operations."