April 10, 2003

“The pattern of closed door bargaining for massive contracts is a distinct departure from the way that government contracts have traditionally been awarded,” said Wyden.  “An open and fully competitive bidding process would ensure that the prices charged are reasonable and that the contractors selected are the most qualified – and if that’s not going to happen, I believe the American people deserve to know how the decisions to spend billions of their tax dollars are being made.” 

“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 reconstruction of Iraq will be an arduous and expensive endeavor, with much of the burden likely to fall on the shoulders of the American taxpayers,” said Byrd, who is Ranking Member of the Senate Appropriations Committee.  “Since they are going to foot the bill, the American people should know how the money will be spent. This legislation will help to ensure that there are no secrets when it comes to awarding contracts for the reconstruction of Iraq. If the Administration wants to award no-bid contracts, it must explain to the American people why.”

“Contracts to help rebuild Iraq will cost many billions of dollars,” said Lieberman. “Especially when this much money is on the line, taxpayers deserve to know how these contracts are being awarded and how their money is being spent. This bill will help to ensure that federal agencies are accountable for their actions.”

The Act would require justifying documents for any non-competitive bidding process would be published in the Federal Register or Commerce Business Daily or otherwise made available to the public no later than 30 days after the contract is signed.  The published information would also include the amount of the contract, a brief 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.  The head of a department or agency would be able to withhold publication of any classified document or redact any part of a document that contains classified information.

Deputy Defense Secretary Paul Wolfowitz has said it will take at least six months for the US to turn over power to an Iraqi-led civilian government; over that period, US News and World Report estimates that reconstruction costs may add up to $100 billion.  The Senators’ legislation is designed to ensure that taxpayers get the best value for their money. 

In the past, the U.S. General Accounting Office (GAO) has found that contractors had not done enough to contain costs on projects involving logistical and engineering support in areas where the U.S. military was involved. According to a September 2000 GAO report, Federal officials "frequently have accepted the level of services the contractor provided without questioning whether they could be provided more efficiently or less frequently and at lower cost." 

The publication of information as required in the Senators’ bill will allow companies who might have been able to compete for Iraqi reconstruction work to challenge the non-competitive process if the standards for exempting contracts from competition are not met. 

The Senators expect the Sunshine in Iraq Reconstruction Contracting Act of 2003 to be referred to the Senate Committee on Governmental Affairs, of which Senator Collins and Senator Lieberman are the Chair and Ranking Member, respectively.
 

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