McClatchy DC Logo

Law waived to allow Kuwaiti firm to build U.S. embassy in Iraq

×
SIGN IN SUBSCRIBE
    • Customer Service
    • Mobile & Apps
    • Contact Us
    • Newsletters
    • Subscriber Services

    • All White House
    • Russia
    • All Congress
    • Budget
    • All Justice
    • Supreme Court
    • DOJ
    • Criminal Justice
    • All Elections
    • Campaigns
    • Midterms
    • The Influencer Series
    • All Policy
    • National Security
    • Guantanamo
    • Environment
    • Climate
    • Energy
    • Water Rights
    • Guns
    • Poverty
    • Health Care
    • Immigration
    • Trade
    • Civil Rights
    • Agriculture
    • Technology
    • Cybersecurity
    • All Nation & World
    • National
    • Regional
    • The East
    • The West
    • The Midwest
    • The South
    • World
    • Diplomacy
    • Latin America
    • Investigations
  • Podcasts
    • All Opinion
    • Political Cartoons

  • Our Newsrooms

World

Law waived to allow Kuwaiti firm to build U.S. embassy in Iraq

Jonathan S. Landay and Warren P. Strobel - McClatchy Newspapers

    ORDER REPRINT →

October 18, 2007 06:53 PM

WASHINGTON — Even as bombings and insurgent attacks turned Baghdad into the epicenter of Iraq's civil war, the State Department pushed hard to have a new, highly secure U.S. Embassy built there in just two years, documents reviewed by McClatchy Newspapers show.

When it solicited bids in 2005, the office that oversees embassy construction received only one proposal for the project, from J.A. Jones International of Charlotte, N.C., according to the documents.

J.A. Jones' bid was rejected because it failed to meet the original completion deadline of June 2007, was more than twice the estimated cost and would have required a so-called "cost plus" contract, the documents show.

The State Department's Bureau of Overseas Building Operations (OBO) then waived a law that requires open and competitive bidding. It awarded a sole-source contract for the unclassified portions of the new embassy complex to a Kuwait-based firm, First Kuwaiti General Trading & Contracting Co.

The waiver described First Kuwaiti as "capable of completing the design and construction in accordance with the required schedule, budget and performance parameters."

Instead, the embassy construction has missed several deadlines; numerous problems have emerged, including faulty firefighting and electrical systems; and the project is the subject of a criminal investigation.

Patrick Kennedy, the State Department's director of management policy, said this week that First Kuwaiti was chosen because it offered a fixed-price contract, in which cost overruns aren't passed on to the government.

"The only company in the end that would offer us a firm fixed-price (contract) was First Kuwaiti. The decision was made, and I believe rightly so, that firm fixed-price is the best protection for the American taxpayer," Kennedy said. "If an American company had bid a firm fixed-price, they might or they might not have won."

But the documents also make clear that OBO and its director, retired Army Maj. Gen. Charles Williams, who signed the waiver that allowed First Kuwaiti to win the contract, were in a hurry to get the project underway.

"Your assistance in issuing these awards immediately will be most appreciated and help us to maintain our aggressive completion schedule," said a July 29, 2005, memo to Cathy Reed of the Iraq Project Construction Office from OBO's James L. Golden.

Related stories from McClatchy DC

world

Criminal probe into U.S. Embassy in Iraq construction

October 18, 2007 06:37 PM

  Comments  

Videos

Bolton announces U.S. sanctions on Venezuela’s state-owned oil company

Women form 370-mile human wall for gender equality in India

View More Video

Read Next

Cruz pushes for stiffer gold penalties against Venezuela’s Maduro

Latin America

Cruz pushes for stiffer gold penalties against Venezuela’s Maduro

By Franco Ordoñez

    ORDER REPRINT →

February 15, 2019 01:38 PM

Sen. Ted Cruz is leading a group of Republican lawmakers that has devised a plan to punish countries, industries or financial institutions caught moving gold for Venezuela or Iran.

KEEP READING

MORE WORLD

Venezuela’s opposition acts like a government and makes plea for money

White House

Venezuela’s opposition acts like a government and makes plea for money

February 14, 2019 02:50 PM
Trump and Colombian president huddle on how to get aid to Venezuelans

White House

Trump and Colombian president huddle on how to get aid to Venezuelans

February 13, 2019 02:41 PM
Air charter firm, client both deny role in alleged shipment of arms to Venezuela

National Security

Air charter firm, client both deny role in alleged shipment of arms to Venezuela

February 08, 2019 07:07 PM
A Venezuelan exile is top diplomat for Guaidó’s government in the U.S.

Politics & Government

A Venezuelan exile is top diplomat for Guaidó’s government in the U.S.

February 08, 2019 05:00 AM
Brazil backs Trump and blames Cuba for Venezuela’s problems

Latin America

Brazil backs Trump and blames Cuba for Venezuela’s problems

February 07, 2019 06:10 PM
Venezuela says plane from Miami delivered weapons for use by enemies of Maduro

Latin America

Venezuela says plane from Miami delivered weapons for use by enemies of Maduro

February 07, 2019 05:13 PM
Take Us With You

Subscriptions
  • Newsletters
Learn More
  • Customer Service
  • Securely Share News Tips
  • Contact Us
Advertising
  • Advertise With Us
Copyright
Privacy Policy
Terms of Service


Back to Story