Tuesday, July 31, 2007
British firms emerge as finalists for largest U.S. security contract in Iraq
Contracts, Reconstruction
(Washington Post) - Two British firms have emerged as finalists to win the largest U.S. security contract in Iraq, according to sources familiar with the matter. In what has become a contentious competition, Aegis Defence Services and ArmorGroup International are considered top contenders for a contract worth up to $475 million to provide intelligence services to the U.S. Army and security for the U.S. Army Corps of Engineers on reconstruction work in Iraq. Aegis won the initial contract in 2004, a three-year, $293 million deal.
The Army has eliminated another British firm, Erinys Iraq, but that company is contesting the decision in sealed documents filed in the U.S. Court of Federal Claims, said sources who spoke on condition of anonymity because the contract review process is confidential. It was unclear yesterday whether the Army had chosen other finalists, but two other firms confirmed that they, too, are out of the running -- Control Risks of Britain and Blackwater Security Consulting of North Carolina.
The battle for the lucrative contract has drawn the attention of members of Congress who have questioned the use of private security contractors, about 20,000 of whom operate in Iraq, and whether the military should be outsourcing such critical tasks as security and intelligence to private firms. Based on a request from a member of Congress, the Special Inspector General for Iraq Reconstruction is conducting its second audit of Aegis.
Meanwhile, federal lawmakers have requested that the Government Accountability Office, Congress's investigative arm, also look into the use of private security contractors in Iraq. The GAO has begun to review contractors there, building on previous reports, spokesman Paul Anderson said. "We're still early in the process."
"The Army's decision to once again remove Erinys from the bidding process is bad economics and demonstrates the fundamental flaws in this procurement," said an Erinys spokesman. "We are taking steps to ensure that our proposal is given fair treatment on a level playing field, in accordance with applicable government laws and regulations."
ArmorGroup spokesman Patrick Toyne Sewell declined to comment. ArmorGroup already is one of the largest security firms in Iraq, with more than 1,200 employees. Aegis, which also has about 1,200 contractors in Iraq, declined as well to comment on the new contract, but Kristi M. Clemens, the firm's executive vice president, touted its work on the current contract.
The Army is expected to make a final decision soon. "We are proceeding with discussions and preparation for award," said Chuck D. Martino, deputy chief of staff of the Joint Contracting Command-Iraq/Afghanistan in Baghdad.
The Army has eliminated another British firm, Erinys Iraq, but that company is contesting the decision in sealed documents filed in the U.S. Court of Federal Claims, said sources who spoke on condition of anonymity because the contract review process is confidential. It was unclear yesterday whether the Army had chosen other finalists, but two other firms confirmed that they, too, are out of the running -- Control Risks of Britain and Blackwater Security Consulting of North Carolina.
The battle for the lucrative contract has drawn the attention of members of Congress who have questioned the use of private security contractors, about 20,000 of whom operate in Iraq, and whether the military should be outsourcing such critical tasks as security and intelligence to private firms. Based on a request from a member of Congress, the Special Inspector General for Iraq Reconstruction is conducting its second audit of Aegis.
Meanwhile, federal lawmakers have requested that the Government Accountability Office, Congress's investigative arm, also look into the use of private security contractors in Iraq. The GAO has begun to review contractors there, building on previous reports, spokesman Paul Anderson said. "We're still early in the process."
"The Army's decision to once again remove Erinys from the bidding process is bad economics and demonstrates the fundamental flaws in this procurement," said an Erinys spokesman. "We are taking steps to ensure that our proposal is given fair treatment on a level playing field, in accordance with applicable government laws and regulations."
ArmorGroup spokesman Patrick Toyne Sewell declined to comment. ArmorGroup already is one of the largest security firms in Iraq, with more than 1,200 employees. Aegis, which also has about 1,200 contractors in Iraq, declined as well to comment on the new contract, but Kristi M. Clemens, the firm's executive vice president, touted its work on the current contract.
The Army is expected to make a final decision soon. "We are proceeding with discussions and preparation for award," said Chuck D. Martino, deputy chief of staff of the Joint Contracting Command-Iraq/Afghanistan in Baghdad.
Labels: Aegis Defense Services, Armorgroup, Blackwater Security Consulting, Chuck D. Martino, contracts, Control Risks, Erinys Iraq, GAO, Iraq, Iraq reconstruction, USACE
Wednesday, May 09, 2007
$300 bn. needed for Iraq reconstruction
Reconstruction
(Iraq Directory) - An Iraqi lawmaker has urged foreign firms attending an international reconstruction fair in Jordan to help rebuild his battered country. "Iraq needs more than 300 billion dollars for reconstruction in all fields -- oil, economy, industry, agriculture, infrastructure," said Yunadem Kanna, a member of Iraq's parliamentary commission on the economy, investment and reconstruction.
"Iraq is a huge market that needs expertise and technology in order to take its seat among world countries," he said at the opening of the 4th Rebuild Iraq international trade fair which lasts through Thursday. "There are security problems but we have safe areas in the north and the south, and there is an investment law that gives foreign firms many benefits," he said.
More than 700 Arab companies and foreign firms from Iran, China, Egypt, France, Germany, Italy, Japan, Russia and Saudi Arabia are at the fair. Observers believe Iraq has great potential because of its abundant oil and gas resources. Last week the leaders of more than 50 countries agreed at an international conference at Sharm al-Sheikh to fund Iraq's reconstruction if the embattled nation meets certain economic benchmarks.
Labels: International Rebuild Iraq Exhibition, Iraq reconstruction, Jordan, Yunadem Kanna
