Partial termination of Parsons Global Services, Inc., hospital contract announced
BAGHDAD, Iraq – The U.S. Army Corps of Engineers, Gulf Region Division, announced that the Joint Contracting Command-Iraq and Afghanistan partially terminated the contract with design build contractor Parsons Global Services, Inc., due to insufficient progress and associated escalating costs which are expected to exceed available funding for the renovation of eight remaining hospital projects across Iraq. The renovation effort for these eight remaining hospitals will be completed with current program funds and construction continues uninterrupted as the contracts were immediately re-awarded by JCC-I/A directly to the onsite Iraqi firms as fixed-price contracts. “The eight hospital renovations will continue without interruption and be completed by Iraqi contractors with current program funds under the supervision of the U.S. Corps of Engineers, Gulf Region Division. Iraqi companies continue to demonstrate the willingness and capability to take on much of this type of work,” said Col. Joseph Phillips, GRD Chief, Public Affairs Office. “We are working with many outstanding Iraqi contractors who want these contracts to help rebuild their country. In fact, we are executing more and more direct contracts with Iraqi companies across the infrastructure sectors we are working.”
The remaining projects -- 70 percent -- are slated to be awarded by the U.S. Corps of Engineers and JCC-I/A to Iraqi-owned businesses. IRRF funding was appropriated by Congress to help jump start the rebuilding of Iraq’s neglected infrastructure. Under Saddam’s three decades of rein, the nation spent little or nothing on repair, rehabilitation or new infrastructure construction. “Thanks to the gift of the American people, IRRF reconstruction funds are being spent to repair and build capacity in: electricity; public works and water; oil; and facilities and transportation,” Phillips said. “From schools and police stations to water treatment plants and communications systems, GRD is working closely with our Iraqi partners to improve Iraq’s infrastructure.”
As of May 5, GRD has 3,699 total planned projects representing a construction cost of $6.19 billion. Nearly 3,500 projects have started ($5.21 billion), 764 are under construction at a construction cost of $2.56 billion, and a total of 2,732 have been completed at a construction cost of $2.65 billion.