Bechtel Bows Out of Iraq Oil-Repair Contract Competition, Citing Scope Changes
A plan by the Army Corps of Engineers to complete significant work under two new Iraqi oil services contracts even before they are awarded has raised industry eyebrows and caused at least one bidder to drop out of the competition. Bechtel Group Inc. announced Aug. 7 that it would pull out of the competition for the two indefinite-delivery, indefinite-quantity contracts worth up to $500 million each, one week before bids are due, claiming that most of the work in the plan will be completed before a replacement contractor could effectively get started.
The contracts will replace the bridge contract awarded to Kellogg Brown & Root (KBR), Houston, as sole source before the war with Iraq began. "The Army Corps of Engineers final work plan for Iraqi oil services work details their intent to accelerate the transition of responsibility to the Iraqi Oil Ministry, effectively minimizing the scope of any new contracts," says San Francisco-based Bechtel in a statement.