Iraqi Reconstruction Contracts Cause Trans-Atlantic Contention by Sean OíDriscoll USAID has awarded seven contracts worth $985 million for Iraqi reconstruction projects. With U.S. companies taking up the top positions, and subcontracting predominantly to U.S. and Middle Eastern companies, European contractors have strongly objected to these contracts, seeing them as a violation of international free trade rules. However, the European Commission, the European Unionís (EU) governing body of ministers, said in June that it has not found any grounds for challenging the United States at the World Trade Organization (WTO). The commission is still examining the wording of an agreement signed by 25 WTO members, including the EU and the United States, which guards against discrimination in public contracts. However, the agreement provides for several exceptions, such as national security or public health matters. The commission had earlier announced that it would examine the huge contract awarded to U.S. conglomerate Bechtel to oversea Iraqi reconstruction. The contracts awarded by USAID include personnel support, seaport administration, local governance, education, capital construction, health and air ports administration. The major companies involved include: Bechtel Corp. Bechtel, the San Francisco-based engineering company, has won the mother of all contracts and will oversee the major construction work in Iraq. An initial contract awards Bechtel $34.6 million but provides for funding of up to $680 million over 18 months subject to congressional approval. Bechtelís primary activities under the contract will include rebuilding Iraqís power generation facilities, electrical grids, water and sewage systems, and airport facilities. The company has said it plans to subcontract many of these projects. Halliburton Co. The U.S. Army Engineers Corps awarded Texas-based, Halliburton subsidiary Kellogg Brown & Root the main contract to fight oil fires and reconstruct oil wells in Iraq. The open-ended contract has been subcontracted to two Houston-based companies. However, Vice President Richard Cheney headed Halliburton for five years before accepting the vice presidential ticket, and democrats are crying foul. DynCorp The U.S. State Department awarded DynCorp a multimillion-dollar contract to advise the Iraqi government on setting up effective police, court and prison systems. DynCorp will arrange for up to 1,000 U.S. civilian law enforcement experts to travel to Iraq. Stevedoring Services of America USAID awarded Seattle-based Stevedoring Services of America (SSA) $4.8 million to manage the Umm Qasr port in southeastern Iraq. SSA will manage the port as it receives shipments of humanitarian and reconstruction materials and will help to improve the port over the long term. Abt Associates Inc. Abt received a $10 million contract from USAID to restructure the Iraqi Ministry of Health and deliver various health services and equipment. It will work closely with nonprofits in Iraq. SkyLink Air and Logistic Support Washington D.C.-based SkyLink Air and Logistic Support won an initial $2.5 million contract early in May to help reopen and manage Iraqís airports. It will eventually turn over airport management to Iraqi staff. International Resources Group USAID awarded International Resources Group (IRG) a $7 million contract for the management of rebuilding and relief projects. IRG will coordinate efforts across education, health, agriculture and infrastructure. Research Triangle Institute Research Triangle Institute (RTI) was awarded a $7.9 million contract to promote Iraqi participation in reconstruction. RTI will provide technical assistance and training programs to improve local administratorsí management skills. RTI will also grant contracts to companies that can help train administrators and civilians in everything from communications to leadership. Creative Associates International Inc. USAID awarded Creative Associates International Inc. a $2 million, one-year contract for emergency assistance with Iraqís primary and secondary schools. This includes training teachers, providing students with school supplies, and developing testing methods. óSean OíDriscoll