The Importance of Self-Governance by Iraq Contractors

HEADNOTE

It is imperative that companies have effective self-governance mechanisms in place before competing for Iraq reconstruction contracts.

The United States' commitment to rebuilding Iraq represents the largest

expenditure of federal funds for nation-building since the "Marshall Plan," which followed World War II. Motivated by the prospect of profitable work, large and small businesses alike have explored opportunities to perform prime contracts and subcontracts in Iraq despite the considerable risks-including loss of life. The commitment of U.S. dollars toward rebuilding Iraq is not expected to stop at the 818.4 billion appropriated by Congress in 2003.1 The White House has indicated it may seek $50-75 billion total.

While the flow of appropriated funds has been slow,2 the Bush administration is not expected to withdraw troops or abandon its goal of encouraging democracy to flourish there.3 Assuming the security situation in Iraq improves, the U.S.'s extraordinary earmarking of funds for building, education, health, communications, transportation, electrical, oil, public works, water, security, and justice contracts in Iraq will provide opportunities for those seeking to do business there. Moreover, it is painfully apparent that the "war on terror" won't subside anytime soon. The United States will continue to be faced with challenges around the globe, creating the need for continual government contractor-supplied goods and services.