http://bechtel.com/iraqallegationresponse.htm"Bechtel’s contract with USAID for the Iraq Infrastructure Reconstruction work was awarded in April 2003 after a competitive process in which seven companies were invited to bid. USAID conducted its selection using objective criteria that followed Federal Acquisition Regulations. Each competitor was judged on competence, performance, experience, and capabilities. According to USAID, Bechtel was selected because we demonstrated the highest technical competence at one of the lowest costs.
Many critics, apparently including Congressman Waxman, have confused the USAID contract competitively awarded to Bechtel with the noncompetitive award to Halliburton/KBR by the U.S. Army Corps of Engineers. These are two completely different contracts awarded by different agencies according to different procedures. Each deserves to be evaluated on its own merits."
"As of October 24, 2003, Bechtel had awarded 110 of 149 subcontracts to Iraqi firms. Before the work is completed, more than 40,000 Iraqis will have been employed by Bechtel and its subcontractors in the extraordinary effort to reconstruct their nation. In order to increase the cost-effectiveness of the work, and to help revitalize the Iraqi economy, Bechtel decided to award the vast majority of the subcontracting work to small Iraqi subcontractors. We are subcontracting 90 percent of the workhours performed on this project, 70 percent of which will go to Iraqi firms. With the exception of the port dredging (because it required a very large dredger not available in Iraq), security, and vendor representatives for high-tech equipment and camps for staff, most of the work we have awarded to date has gone to small Iraqi contractors.
Because many small Iraqi contractors do not have sufficient working capital to perform the work, Bechtel instituted a program to advance funds to many of these contractors, at no cost to them."