Rebuilding Iraq - Opportunities for Missouri Business?
Although the war with Iraq is officially over and U.S. forces have
captured Saddam Hussein, the aftermath of the war continues. The U.S.
government is committed to the reconstruction of a nation torn apart
by a corrupt regime and devastated by the destruction of war. To date,
the U.S. has appropriated more than $21 billion for the reconstruction
of Iraq. Companies from 63 coalition and troop-contributing countries
are eligible to compete as prime contractors on the U.S.-funded contracts.
This is just the beginning.
The Coalition Provisional Authority (CPA) is the temporary governing
body that has been designated by the United Nations as the lawful government
of Iraq until such time as Iraq is politically and socially stable enough
to assume its sovereignty. The CPA has been the government of Iraq since
the overthrow of Saddam Hussein and his Baath Regime in April 2003.
In addition to protecting Iraqi territorial integrity and working to
provide security to the Iraqi people, the CPA has committed itself to
rebuilding all aspects of Iraqi infrastructure so that upon turnover
to the first democratically elected government Iraq has ever known,
that government will assume authority over a country ready, both internally
and externally, to function economically, provide basic services to
its citizens, provide for its own defense and play a responsible role
in the international community of nations.
The CPA created an "Iraq Program Management Office" (PMO)
to prioritize and oversee all procurement funded by the new U.S. government
appropriation of $18.6 for Iraq reconstruction. The PMO maintains a
new website (www.export.gov/iraq)
where contracting activities are reported. On January 7, 2004, the PMO
released Requests for Proposals (RFPs) on 17 contracts to be awarded
in March 2004. Seven of the contracts are for program management services.
One is to support the PMO, and one has been issued for each of six sectors
of work: 1) electrical, 2) public works/water resources, 3) security/justice,
4) buildings/health, 5) transportation and communications and 6) oil.
Ten major design/build construction RFPs fall under the six program
sectors. All PMO (and U.S. agency) solicitations, amendments and awards
are posted on the Federal Business Opportunities Website (www.fedbizopps.gov).
The PMO website is posting copies of the RFPs. The Pentagon Renovation
Program office, which is the contracting agency issuing the seven program
management solicitations on behalf of the PMO, posts its RFPs along
with helpful questions and answers on its own website
renovation.pentagon.mil/IIRO/IIRO.htm
In addition, the CPA and the Iraqi Ministry of Trade formed the Iraqi
Business Center in Baghdad (www.iraqibusinesscenter.org/)
to provide business services to a burgeoning and eager Iraqi business
community. To further assist local companies in identifying coalition
reconstruction and Iraqi public sector opportunities and establish partnerships
with foreign companies, the website provides extensive listings of Iraqi
Ministry and coalition tenders.
The City of Kirkuk, located in the heart of the northern oil industry,
formed a robust Kirkuk Business Center (kirkuk-business-center.org/)
that publishes highly informative newsletters.
The role of the U.S. Agency for International Development (USAID) in
Iraq is to restore critical infrastructure, support essential health
and education services, expand economic opportunity and improve efficiency
and accountability of government. The USAID Iraq website (www.usaid.gov/iraq/activities.html)
includes information about contract
solicitations and awards. USAID press
releases and weekly reports contain valuable insight on potential
business opportunities. On January 6, 2004, USAID awarded a new $1.8
billion Iraq infrastructure contract to Bechtel and Parsons Corporation
to fund work similar to Bechtel's current capital construction contract.
The new Iraq Infrastructure II contract will fund additional repair
of power generation facilities; electrical grids; municipal water/sewage
systems; airport facilities; the Umm Qasr seaport; essential transportation
links; government and public facilities including schools; selected
ministry buildings; and major irrigation structures.
U.S. Defense Department reconstruction contracts are issued by the
U.S. Army Corps of Engineers (USACE). Their primary
mission is to restore the capability for oil production, oil refining
and gas processing to pre-war conditions. The USACE website (www.hq.usace.army.mil/cepa/iraq/iraq.htm)
offers information on their operations in Iraq and contracting
opportunities.
The best way to ensure consideration as subcontractors or suppliers
on reconstruction contracts is to directly contact the prime contractors
who are entirely responsible for choosing their own business partners.
Comprehensive information on current reconstruction contracts and contractors
funded by the initial U.S. appropriation of roughly $2.5 billion can
be found at the USAID website (www.usaid.gov/iraq)
and the U.S. Army Corps of Engineers website (www.hq.usace.army.mil/cepa/iraq/contracts.htm).
The security situation in Iraq remains serious. Theft and violent crime
persist in Iraq, and the potential for attacks against U.S. citizens
and facilities remains high. Roads and other public areas can be dangerous
for conspicuous foreign travelers. Law enforcement is limited, although
Iraqi police units continue to emerge under the supervision of Coalition
Forces. The U.S. Department of State issues up-to-date travel warnings
for countries throughout the world, and U.S. companies and visitors
are advised to carefully assess the situation in Iraq.
All of this information has been compiled from the Rebuilding Iraq
website (www.export.gov/iraq/)
developed by the Iraq Reconstruction Task Force, the U.S. Department
Commerce and its links.
Although many Missouri businesses may not have the capability to be
awarded the prime contracts in the reconstruction business opportunities
afforded by the rebuilding of Iraq, many could become subcontractors
or suppliers. The 17 contracts to be awarded in March will be posted
on the above-mentioned websites. Any Missouri business interested in
contracting opportunities should contact the Missouri Procurement Technical
Assistance Center at the University of Missouri-Columbia by calling
573-882-8058. Or, visit the website www.missouribusiness.net/ptac
for additional information and center locations.
Send this article to a friend
Authored by: Willis Mushrush, Business and Industry
Specialist, University of Missouri Extension
Source: Creating Quality Newsletter, Volume
13, Number 2, February 2004
go
back
Newsletter archives: 2004
| 2003
| 2002
| 2001
