Bush administration officials say politics had nothing to do with a decision to award a second contract worth US$1.8 billion to rebuild Iraq to Bechtel, the giant construction company known for its close ties to Republican officials, and its partner, Parsons Corp.
In announcing the new contract on Tuesday, the US Agency for International Development said that Bechtel and Parsons, both based in California, came up with the best proposal at the lowest price when competing for bids against two other companies.
"This contract and selection was run completely by USAID," said Tim Beans, the agency's procurement director. "There was no influence whatsoever either direct or indirect on the contract process. I was never contacted at any point by anyone on this procurement and if I had been I would have reported it to the inspector general."
In fact, he said, USAID Administrator Andrew Natsios did not know the name of the winning company until Tuesday morning when Beans told him just before it was announced. He declined to name the two companies that lost out, citing legal reasons.
Bechtel executives gave thous-ands of dollars to US President George W. Bush's 2000 election campaign and two of the company's top executives serve on advisory boards to the White House and the Defense Department.
Democrats have criticized the no-bid US$680 million Iraqi reconstruction contract San Francisco-based Bechtel signed last April, calling it an example of Bush administration cronyism.
Asked at a news conference whether Bechtel, a giant engineering company with major ongoing projects around the world, had an inside track because it already had a reconstruction contract in Iraq, Beans said he did not see it that way.
"For the taxpayer, we have to assure that past performance is taken into consideration," Beans said. "Bechtel had just as much a chance to mess up as they did to do well."
He said if Bechtel had not been doing a good job getting along with the Coalition Provisional Authority and Iraqi officials, they would have been at a disadvantage during the bidding process.
The government also announced on Tuesday that it plans to open bidding on another US$5 billion in Iraq reconstruction work.
For the latest contract, Bechtel National Inc and Parsons Corp will be responsible for rebuilding Iraq's electricity and water systems, plus roads, schools, airports and other important projects, USAID officials said.
Bechtel's existing Iraq reconstruction contract will continue in parallel with the new one.
Parsons has an US$89 million contract with the US military to oversee disposal of Iraqi munitions at three sites. The company also has teamed with Bechtel to build facilities for the Army to dispose of large portions of the US chemical weapons arsenal.
Last September, Parsons announced it had hired two former top Energy Department officials to help the company land Energy Department contracts.
Retired Navy Admiral David Nash, who oversees reconstruction contracts for the US-led Coalition Provisional Authority that reports to the Pentagon, also announced plans Tuesday to start the bidding process for another 17 Iraq reconstruction contracts worth US$5 billion. Nash said he hoped to have those contracts awarded by early March.
The Parsons Corp that won the reconstruction contract is not related to Nash's former employer, Parsons Brinckerhoff.
RETHINK? The defense ministry and Navy Command Headquarters could take over the indigenous submarine project and change its production timeline, a source said Admiral Huang Shu-kuang’s (黃曙光) resignation as head of the Indigenous Submarine Program and as a member of the National Security Council could affect the production of submarines, a source said yesterday. Huang in a statement last night said he had decided to resign due to national security concerns while expressing the hope that it would put a stop to political wrangling that only undermines the advancement of the nation’s defense capabilities. Taiwan People’s Party Legislator Vivian Huang (黃珊珊) yesterday said that the admiral, her older brother, felt it was time for him to step down and that he had completed what he
Taiwan has experienced its most significant improvement in the QS World University Rankings by Subject, data provided on Sunday by international higher education analyst Quacquarelli Symonds (QS) showed. Compared with last year’s edition of the rankings, which measure academic excellence and influence, Taiwanese universities made great improvements in the H Index metric, which evaluates research productivity and its impact, with a notable 30 percent increase overall, QS said. Taiwanese universities also made notable progress in the Citations per Paper metric, which measures the impact of research, achieving a 13 percent increase. Taiwanese universities gained 10 percent in Academic Reputation, but declined 18 percent
CHINA REACTS: The patrol and reconnaissance plane ‘transited the Taiwan Strait in international airspace,’ the 7th Fleet said, while Taipei said it saw nothing unusual The US 7th Fleet yesterday said that a US Navy P-8A Poseidon flew through the Taiwan Strait, a day after US and Chinese defense heads held their first talks since November 2022 in an effort to reduce regional tensions. The patrol and reconnaissance plane “transited the Taiwan Strait in international airspace,” the 7th Fleet said in a news release. “By operating within the Taiwan Strait in accordance with international law, the United States upholds the navigational rights and freedoms of all nations.” In a separate statement, the Ministry of National Defense said that it monitored nearby waters and airspace as the aircraft
UNDER DISCUSSION: The combatant command would integrate fast attack boat and anti-ship missile groups to defend waters closest to the coastline, a source said The military could establish a new combatant command as early as 2026, which would be tasked with defending Taiwan’s territorial waters 24 nautical miles (44.4km) from the nation’s coastline, a source familiar with the matter said yesterday. The new command, which would fall under the Naval Command Headquarters, would be led by a vice admiral and integrate existing fast attack boat and anti-ship missile groups, along with the Naval Maritime Surveillance and Reconnaissance Command, said the source, who asked to remain anonymous. It could be launched by 2026, but details are being discussed and no final timetable has been announced, the source