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By Andrew S. Natsios,
Administrator, U.S. Agency for International
Development
March 31, 2003
When the U.S. government decided to help Iraqis rebuild deteriorated schools, water systems, hospitals and other aspects of their country following the removal of the Saddam Hussein regime, it required respect, speed and strength.
Instead of the usual procurement process allowing all firms to compete for contracts -- a process that takes six months -- the U.S. Agency for International Development used expedited procedures under federal law, allowing it to limit the number of competing firms to shorten the decision time.
Naturally, the USAID issued invitations for bids (known as Requests for Proposals or RFPs) to multinational firms with a proven track record of tackling major reconstruction projects in post-conflict countries such as Bosnia and Haiti. And since the war in Iraq had not yet begun or is still underway, RFPs went to firms with security clearances.
These steps were not only legal, but they also showed common sense. We want to quickly show the world -- especially Muslim countries -- that we care about the Iraqi people and are ready to use our tax dollars to improve their lives.
Critics have implied that inviting only the big firms to compete for each contract is a sign of cronyism or favoritism. This is far from the truth. If you need a surgeon, a lawn service, a real estate agent or a college, you seek out the names with the reputation for quality and the ability to get the job done. That is what the USAID has done.
Some countries have complained that they were not invited to bid for these projects, which are funded by U.S. taxpayers. Yet, ironically, foreign aid agencies in most countries try to award contracts to their own companies, supporting business at home while delivering assistance abroad -- just as Americans want to see their tax dollars support jobs at home.
But no one company is big enough to do these jobs alone. Up to 50% of the work may be subcontracted to U.S. and foreign firms.
The American public will not stand by and watch the Iraqi people drink foul water, fail to restart schools or miss the benefits of what American soldiers and Iraqis are dying for -- the liberation of Iraq.
Andrew S. Natsios is the administrator of the U.S. Agency for International Development.
For more information on USAID's humanitarian relief efforts in Iraq, please visit www.usaid.gov/iraq/.
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