I.F. Stone once said the Washinton Post was exciting to read "because you never know on what page you would find a page-one story."
Why was this in the Business Section of the New York Times yesterday?
The Bechtel Group, one of the world's biggest engineering and construction companies, has dropped out of the running for a contract to rebuild the Iraqi oil industry, as other competitors have begun to conclude that the bidding process favors the one company already working in Iraq, Halliburton.After the United States Army Corps of Engineers quietly selected Halliburton in the spring to perform early repairs of the Iraqi oil business in the aftermath of the war, other companies and members of Congress protested that the work should have been awarded through competitive bidding.
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Preliminary plans for a new contract, which industry executives had thought might total $1 billion, were announced late in June by the Corps of Engineers. The bidding was meant, in part, to introduce competition and a sense of fairness into the lucrative Iraqi reconstruction market, an executive with a major engineering concern said. Like many industry executives, he would speak only on condition of anonymity because his company does not want to jeopardize its chances for future government contracts.
But in the last month, the corps, which is overseeing the reconstruction efforts, has specified a timetable for the work that effectively means that the value of any contract companies other than Halliburton could win would be worth only about $176 million, according to Corps of Engineers documents and executives in the engineering and construction business.
Earlier this week, Bechtel cited the timetable as its reason for dropping out of the bidding. The company now plans to deal directly with the Iraqi oil ministry for future reconstruction work, a spokesman, Howard N. Menaker, said.
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Working in Iraq has helped turn around Halliburton's financial performance, its second-quarter results showed. The company made a profit of $26 million, in contrast to a loss of $498 million in the period a year earlier. The company stated that 9 percent, or $324 million, of its second-quarter revenue of $3.6 billion came from its work in Iraq.
