Rebuilding Iraq- the contractors

Rebuilding Iraq
http://www.opensecrets.org/news/rebuilding_iraq/index.asp

Rebuilding Iraq -- The Contractors

Even before the war in Iraq began March 20, the Bush administration was considering plans to help rebuild the country after fighting ceased. According to news reports in early March, the U.S. Agency for International Development secretly asked six U.S. companies to submit bids for a $900 million government contract to repair and reconstruct water systems, roads, bridges, schools and hospitals in Iraq.

The six companies -- Bechtel Group Inc., Fluor Corp., Halliburton Co. subsidiary Kellogg, Brown & Root, Louis Berger Group Inc., Parsons Corp. and Washington Group International Inc. -- contributed a combined $3.6 million in individual, PAC and soft money donations between 1999 and 2002, the Center reported on its news site, CapitalEye.org. Sixty-six percent of that total went to Republicans.

The bidding process has been criticized for including only a handful of companies, some with substantial political clout and none of which is based outside the United States. USAID officials said the recent invitations to bid on reconstruction contracts went to U.S. corporations for security reasons, and that foreign companies may compete for subcontracting work, Bloomberg News reports.

As the winners* of this and other contracts to rebuild Iraq are announced, we will post their campaign contributions -- large or small -- below. (Figures represent total contributions made between 1999 and 2002, and include PAC, soft money and individual contributions to federal candidates, party committees and leadership PACs.^)

Bechtel Group Inc.
The Contributions: $1,297,465 (59 percent to Republicans; 41 percent to Democrats)
Total to President Bush: $6,250
The Contract: USAID awarded the largest of its postwar Iraq contracts to Bechtel Group Inc. April 17. The capital construction contract gives Bechtel an initial award of $34.6 million, but provides for funding of up to $680 million over 18 months subject to Congress’ approval. Bechtel’s primary activities under the contract will include rebuilding power generation facilities, electrical grids, water and sewage systems and airport facilities in Iraq. The company has said it plans to subcontract a number of these projects.
The Company: Bechtel Group Inc., the San Francisco-based engineering company, has been in the construction business for more than 100 years and has completed close to 20,000 projects in 140 countries. The privately owned firm, which had revenues of $13.3 billion last year, has made a number of friends in Washington over the years. Former Secretary of State George Shultz, once Bechtel’s president, now serves on the company’s board of directors. USAID Administrator Andrew Natsios, who oversees the bidding process for postwar contracts, once headed the Boston-area “Big Dig” construction project, for which Bechtel was the primary contractor.

Halliburton Co.
The Contributions: $709,320 (95 percent to Republicans)
Total to President Bush: $17,677
The Contract: On March 25, the U.S. Army Corps of Engineers awarded Halliburton Co. subsidiary Kellogg, Brown & Root the main contract to fight oil well fires and reconstruct oil fields in Iraq. The open-ended contract, which has no specified time or dollar limit, was given to the company without a bidding process. KBR has already announced it will subcontract the actual firefighting operations to Boots & Coots International Well Control Inc. and Wild Well Control Inc., both based in Houston.
The Company: Halliburton Co., the Dallas-based oil field services giant that took in $12.5 billion in sales last year, is no stranger to government contracts. Kellogg, Brown & Root fought oil well fires in Kuwait and provided support services to U.S. forces in the Balkans in the 1990s. But Halliburton's ties to Washington have made it a target of criticism in the latest bidding process. Vice President Dick Cheney headed the company for five years before becoming George W. Bush's runningmate in 2000. Lawrence Eagleburger, former U.S. secretary of state under President George H. W. Bush, sits on the company's board.

Stevedoring Services of America
The Contributions: $23,825 (80 percent to Republicans)
Total to President Bush: $1,000
The Contract: USAID awarded Stevedoring Services of America a $4.8 million contract on March 24 for "assessment and management" of the Umm Qasr port in southeastern Iraq. The agency says the Seattle-based company will operate the port as it receives shipments of humanitarian and reconstruction materials and will research ways to improve port productivity for the long term.
The Company: Stevedoring Services of America, the largest marine terminal operator in the United States, made an estimated $1 billion in sales last year. The family-owned and -operated company is a private venture.

International Resources Group
The Contributions: $3,800 (82 percent to Democrats)
Total to President Bush: $0
The Contract: USAID awarded International Resources Group a $7 million, 90-day contract Feb. 21 for the management of relief and rebuilding efforts in postwar Iraq. IRG will coordinate efforts across multiple sectors, including education, health, agriculture, civil society and infrastructure.
The Company: International Resources Group is a Washington, D.C.-based professional services firm that manages complex environmental, energy and reconstruction situations for public and private sector clients. Founded in 1978, IRG has completed more than 600 projects, many of them for USAID.

Research Triangle Institute
The Contributions: $3,691 (all to Democrats)
Total to President Bush: $0
The Contract: USAID awarded Research Triangle Institute a $7.9 million contract April 11 to promote Iraqi civic participation in the reconstruction process. RTI will provide technical assistance and training programs in an effort to improve local administrators’ management skills and understanding of municipal services. RTI will also have the authority to grant contracts to Iraqi and foreign non-governmental organizations that will help train administrators and civilians in communication, conflict resolution, leadership and political analysis. Increasing political participation of “at-risk” groups-- including those that represent the interests of women, minorities and youth in Iraq—will be a top priority for RTI.
The Company: Research Triangle Institute is a non-profit organization based in Research Triangle Park, N.C. The group has worked in transitional regions for more than 20 years, and is a regular USAID contractor. RTI has completed governance work in South Africa, Indonesia and El Salvador and most recently won a $60 million USAID contract for educational development in Pakistan.

Creative Associates International Inc.
The Contributions: $2,000 (all to Democrats)
Total to President Bush: $0
The Contract: USAID awarded Creative Associates International Inc. a $2 million one-year contract April 11 to address the “immediate educational needs” of Iraq’s primary and secondary schools. Short-term activities covered under the contract include training teachers, providing students with school supplies and developing testing methods to track student performance.
The Company: Creative Associates International Inc. is a private consulting firm based in Washington, D.C., that provides community development assistance to transitional regions. The firm, which has revenues of $35 million per year, has completed more than 400 contracts since its inception in 1979.

http://www.janes.com/defence/conference/rebuilding_iraq/overview.shtml

COMPANIES ON THE GROUND:

THE CHALLENGES FOR BUSINESS IN REBUILDING IRAQ

"...The Center for Strategic and International Studies (CSIS) and Jane’s have partnered together to examine one of the critical issues facing the international community in the wake of the war in Iraq.

What is the role for the private sector in rebuilding war-torn Iraq? What are the challenges, pitfalls, and opportunities for companies, both American and international, in creating enduring institutions and infrastructure in the time ahead?
Organised by
Jane's ~Information Group CSIS, click to go tho the CSIS website

U.S. government officials, experts from key international agencies, and experts in the post-conflict reconstruction field will discuss the likely political situation and legal environment businesses will face.

Speakers with specific private sector expertise in structural issues faced in post-conflict environments will address priority questions, such as risk mitigation for contractors, insurance, sanctions, Iraq’s existing contracts and financial obligations.

Particular sectoral opportunities in post-war Iraq will be analysed through the prism of the security and political challenges that will exist. How will the security environment affect the delivery of key goods and services? How will businesses interact with the security presence on the ground?

Benefits of attending

Opportunity to hear from experts in the security field and senior U.S. military officials on the likely security environment in Iraq after the war. How has the security environment changed?

Gain an understanding of the non-traditional opportunities that will be available for the private sector, and the non-traditional burdens that could be placed on businesses in Iraq.

Opportunity to meet with the full range of companies and support players who will be involved in rebuilding Iraq after the war.

Participate in a not-for-attribution session that will permit a dynamic, frank exchange of views on the opportunities and challenges businesses will face in post-conflict Iraq.

Who should attend?

* Senior executives who will be involved in the strategy and execution of supporting the reconstruction of Iraq.
* Service firms (law firms, financial institutions, accounting and consulting companies) who will be supporting the prime contractors in Iraq.

Key topics

Key Challenges: Security and the Political Environment
This session will provide an insight into the likely security and political challenges that businesses will encounter in doing business in Iraq after the war. It will also draw relevant lessons from companies’ experiences in other conflict/post-conflict zones.

Immediate Priorities
Doing business in Iraq will be highly complex, given the security and political environments. This session will analyse the priority structural issues companies will face in Iraq, laying out a roadmap for addressing those issues.

Traditional Private Sector Missions
This session will provide an in-depth look into some of the traditional private sector missions in post-conflict environments, as seen through the prism of the security, political, and legal challenges that lie ahead.

Non-traditional Private Sector Missions
The Bush Administration has outlined a major role for the private sector in areas traditionally handled by NGOs and government and international agencies. This session will provide an important overview of the non-traditional opportunities and burdens for businesses in Iraq...."

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