Award of Sector Design-Build Construction Contracts

Abstract : Public Law 108-106 Congress appropriated over $18.6 billion for the Iraq Relief and Reconstruction Fund, November 6, 2003, including $18.4 billion designated for Iraq. Those funds can be used through September 2006. The Project and Contracting Office, Coalition Provisional Authority supervises reconstruction efforts in Iraq and manages execution of the $18.4 billion. The Project and Contracting Office has six Sector Project and Contracting Offices that oversee reconstruction. The sectors are Public Works and Water; Security and Justice; Buildings, Education, and Health; Electric; Communications and Transportation; and Oil. To help rebuild the Iraqi infrastructure, DoD Components awarded 12 design-build construction contracts, valued as much as $7 billion. Two contracts were awarded in January 2004 to rebuild the oil sector and 10 contracts were awarded in March 2004 for the other sectors. Each contract was an indefinite-delivery indefinite quantity contract that provides for the issuance of task orders on either a cost reimbursement or fixed price basis. This contracting vehicle was used in order to minimize the costs of mobilizing and de-mobilizing contractors and administering the contracts, and to facilitate training and transition of responsibility to the Iraqi people. Each contractor will perform a portion of the work within a sector. As such, the contractors will not compete for work performed within the scope of their contracts.