Washington, DC- Senator Hillary Rodham Clinton announced today that the Senate had approved an amendment to the Supplemental Appropriations bill that would require new Iraqi construction contracts to be awarded through full and open competition, unless the Defense Department or other contracting department publicly justifies any sole source or limited-bid contracts. In addition, the amendment would require disclosure that would enable Congress to conduct rigorous oversight of the contracting process. The amendment would ensure that contracts are awarded to the most qualified companies at the best cost to taxpayers. Senator Clinton was an original co-sponsor of amendment along with Senators Ron Wyden (OR), Susan Collins (ME), Joseph Lieberman (CT), Mike Enzi (WY), Dianne Feinstein (CA), Frank Lautenberg (NJ) and Daniel Akaka (CT).

"It is the responsibility of Congress to ensure that the funds we appropriate for reconstruction in Iraq are spent in a fair and open manner. This amendment provides an element of accountability so that Congress and the American people can have a full understanding of how these contracts are being awarded," said Clinton. "It would be unfortunate if, in our effort to set an example of open government and democratic principles abroad, we undermined those principles here at home."

The amendment, which passed the Senate late yesterday would require justifying documents for any non-competitive bidding process to be published in the Federal Register and Commerce Business Daily no later than 30 days after the contract is signed. The published information would also include the amount of the contract, a description of the contract's scope, a list of companies selected for the closed bidding process, and explanations of how and why the agency chose those contractors. Different procedures would apply to contract documents that, if disclosed, could compromise national security.

The amendment also includes provisions that would require reports to the Senate Governmental Affairs Committee and its House counterpart on how the funds are being spent and to explain contracts and interagency transfers.

This requirement would affect both new contracts and existing contracts that are extended with funds from the supplemental. Contracts for reconstruction, expected to total $20.3 billion, are included, as are contracts with private-sector companies providing products and services to the U.S. military. The amendment does not apply to funds for weapons or munitions, or to funds provided directly to the military.

In May 2003, Senators Clinton, Wyden, Collins, Lieberman and Byrd introduced the Sunshine in Iraq Reconstruction Act of 2003, which contained similar language. A similar amendment co-sponsored by the same group of Senators was also included as an amendment to the Senate version of the Department of Defense Authorization bill, which passed the Senate in May.

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