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Bechtel wins $680m Iraq contract
WASHINGTON - The US government on Thursday awarded Bechtel a contract that could reach $680 million to help rebuild Iraq's power, water and sewage systems and repair airports and a seaport.
The US Agency for International Development said the San Francisco engineering and construction company initially will receive $34.6 million. Bechtel could earn the larger figure over 18 months if Congress approves the funds. Several Democratic lawmakers have complained that President George W. Bush's administration did not allow open competitive bidding, inviting a few companies to submit proposals.
One critic, Democratic Senator Ron Wyden of Oregon, said the contract showed that "a troubling pattern is beginning to emerge, as some of the most powerful business interests in the country continue to receive these huge contracts without ... open, transparent bidding."
Wyden and others are sponsoring a bill that would require a public explanation of contracts awarded under a limited bidding process. The federal agency has defended the procedure as the only way to get help to Iraq quickly. Other companies invited to bid were Parsons ; Fluor.; Louis Berger.; and Washington Group International. A subsidiary of Halliburton, which was formerly run by Vice-President Dick Cheney, was invited to bid but decided instead to seek work as a subcontractor. Bechtel rose from a family business to a privately held international engineering powerhouse. Its executives have included former secretary of state George Shultz and former defence secretary Caspar Weinberger. Bush named Ross Connelly, a former Bechtel executive, as vice president and chief operating officer of the Overseas Private Investment - the agency that supports US investment around the globe.
The Bechtel Group and its employees have been among the biggest political donors in the general contracting industry. The company and its workers contributed at least $277,050 to federal candidates and party committees in the last election cycle.
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