The rollout of construction contracts to rebuild Iraq, funded by $18.6 billion in emergency funds approved late last year by Congress, has begun. On Marhc 10 and 11. the Pentagon awarded one overall management contract, six sector construction management contracts and two prime sector awards, worth approximately $1.2 billion. All of the contracts will be overseen by the Pentagons Program Management Office in Baghdad, headed by retired Adm. David J. Nash.
Los Angeles-based AECOM received a $21.6-million award to manage construction work in all six sectors. A joint venture between CH2M Hill Cos. Ltd, Denver, and Parsons Water Infrastructure Inc., Pasadena, Calif., won a $28.5-million award to manage construction in the public works and water sector program.
For management of the transportation and communications sectors, a joint venture between the Louis Berger Group Inc., East Orange, N.J., and San Francisco-based URS Group received the $8.5-million award. The Berger-URS team also won a $10.8-million contract to oversee the buildings, education and health sectors, and an $8.5-million contract to rebuild the security and justice sectors.
A $43.4-million contract to manage the electrical services sector was awarded to Iraq Power Alliance, a joint venture between Parsons Energy and Chemicals Group, Houston, and Parsons-Brinckerhoff Ltd., U.K. Foster Wheeler Energy Ltd., Hamilton, Bermuda, won an $8.4-million contract for management of the oil sector.
A joint venture of FluorAMEC LLC, Greenville, S.C., won a contract worth up to $500 million to provide design/build services for construction, rehabilitation, operation and maintenance of power generation facilities.
Washington International,Inc./Black&Veatch Joint Venture, Boise, received an award worth up to $600 million to provide design/build services for national water resource projects including repair and construction of water resources supplies and transmission networks throughout the country.
Other awards are expected to be announced throughout the month.
In a March 10 briefing on Iraqi contracting, Nash reiterated that the PMO expects its contractors to employ Iraqis in the reconstruction effort. "We've incentivized the contractors to help us build the construction industry in Iraq," he said. "I hesitate to give out any numbers...but I think you'll find that there's going to be a large portion of those who are interested in working in construction will employ the Iraqis."
Several representatives of the contracting firms say they are heading to Washington early next week to receive further briefings from the Pentagon before setting up shop in Iraq. The request for proposal stipulates that they are expected to be on the job by April 1. The coaltion Provisional Authority has said it will turn over power to the new Iraqi government by July 1, but Nash adds that the reconstruction effort will extend beyond that date.