Sunday, October 19, 2003

Hoping to speed up reconstruction work in Iraq, American officials in Baghdad are offering contracts totaling hundreds of millions of dollars, but giving companies as little as three days to submit competing bids.

Procurement experts said the extremely short deadlines were legal, but some warned that they could stifle open competition, favor well-connected contractors at the expense of outsiders and lead to higher costs.

"Three days is absurd," said Steven Schooner, a professor of procurement policy at George Washington University's law school. "You can objectively conclude that in the United States we don't do this. It's highly unusual."

Two weeks ago, the Coalition Provisional Authority in Iraq gave companies three days to bid on a contract to supply the Iraqi government as many as 850 personal computers as well as telephones, fax machines and other office equipment.

A week before that, occupation officials gave contractors seven days to offer a price for up to 14 million boxes of ammunition for Russian-made AK-47 automatic rifles, which are widely used by the Iraqi police and security forces.

Scores of other jobs have been awarded or offered with similarly short bidding periods. They include contracts to provide private security guards, repair buildings, supply heavy electrical equipment and even to destroy gigantic sculptures of Saddam Hussein.

Occupation officials say they have made the process more open. They now post contracting opportunities on the occupation authority's Web site, along with a standard list of rules and conditions for bidding and carrying out work.

But they also say that speed is a top priority, and they make no apologies for giving companies a very short time to respond. "We're here to support the customer, and he has an urgent need," said Col. Anthony Bell, a spokesman for the occupation on contracting issues, explaining the rationale for the rapid granting of contracts. "All that we're doing is reacting to the urgent requirement that he has provided us."

The current rush of contracts is being financed out of the new Development Fund of Iraq, which holds money received from Iraqi oil exports. Since the fund's inception in mid-July, coalition officials say they have awarded 143 projects worth more than $200 million.

But that is just the beginning. The Bush administration predicts that Iraqi oil revenues will reach $12 billion next year, and President Bush is pressing Congress to approve nearly $20 billion in American money for civilian work in Iraq next year.

http://www.nytimes.com/2003/10/19/international/middleeast/19CONT.html

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