A month after it was awarded the 18-month contract by the US Agency for International Development (USAID), Bechtel made clear at the meetings that the programme would not be a building bonanza. Officials stressed that the vast majority of subcontract work would be small-scale, that competition for subcontracts would be intense and that the prevailing security environment in Iraq and the programme's fast-track nature would place heavy demands on the companies seeking subcontracts.

Bechtel said that it intended to subcontract out 90 per cent of its contract, which is potentially worth up to $680 million. 'This job is not about Bechtel doing direct hire construction. It is about integration,' said Bechtel's acquisition service manager Tom Elkins at the London conference on 22 May. Elkins also emphasised that the bulk of subcontract awards would be small on the programme, which covers the repair of existing infrastructure only. 'A major tender on this programme will be $25 million-30 million. but the vast majority will be much, much smaller. If a task order gets to $20 million, it will be a huge job,' he said.

The initial subcontracts awarded on the programme have already proved that. By 16 May, Bechtel had let 14 subcontracts to nine companies from four countries. If the largest contract - awarded to the US' Great Lakes Dredge & Dock Companyfor the dredging of Umm Qasr port - was removed from the list, the average value of the remaining 13 would be under $500,000.

Elkins said that subcontracts were being tendered every day - a further six were due to be awarded in the last week of May - and that imminent awards would primarily relate to the removal of unexploded ordnance and the repair of medical facilities. 'What we are finding is that a lot of the unexploded ordnance has more to do with conflicts 20 years and 12 years ago than the most recent one,' Elkins said. 'One of our immediate priorities is to turn hazardous areas into permissive areas, since we are committed to zero accidents. We will not allow a hazardous situation to turn into a dangerous one.'

Tendering will follow on some major packages. One of the largest packages, expected to be issued in the coming one-two months, will be for the repair of the 400-kV power distribution network. 'We are not sure how this will be divided up but it will probably be worth in total $30 million-50 million,' Elkins said. Other packages, described as high-value orders, will involve the repair of five bridges and selected buildings in Baghdad. Work is also planned on Iraq's airports, although major repairs are likely to focus on avionics rather than structures, which have suffered limited damage.

Bechtel says that the 'ultra-fast track' nature of the programme means that all subcontracts will be tendered electronically and nearly all will be let on a procurement and construction basis. In some cases the turnaround time in submitting bids and awarding the contract will be just 24 hours, although the norm is likely to be seven days. 'We therefore want responsive and responsible bids,' Elkins said. 'Responsive means responding to the tender on time and without exceptions. If you don't submit on time we will probably not open it. If you cannot commit to the safety requirements, your bid will be disregarded. Awards may be made without discussions. This does not mean the process is not transparent: it means there is not enough time for clarifications.'

Subcontractors will also be responsible for arranging their own security and insurance and will be expected to be self-sufficient. As a result, Elkins warned that there would be a significant management and administration burden for participants in the programme.

Elkins stressed that tendering for subcontracts would be global and open to all-comers. By 16 May, over 4,300 companies had registered their interest in subcontracts through the Bechtel portal. Of the total, some 2,800 companies had registered from the US, 326 from the UK and 122 from Turkey. 'By the time this settles down, my guess is that about 10,000 companies will have registered,' Elkins said. 'That is what you are up against.'

Bechtel defended its use of the portal as the first point of contact with companies, stating that the unprecedented response from contractors could not have been managed any other way. Elkins acknowledged that some companies had experienced difficulties registering through the portal, but said the problems would soon be overcome.

Bechtel has also faced criticism over its stipulation that contractors must register and obtain a number from Dun & Bradstreet (D&B), which provides key financial information on companies. A criteria for D&B registration is that companies must have a US postal address, a condition that has prevented some companies from obtaining a number. Bechtel said that it was in discussion with D&B to resolve the issue.

Iraqi companies say they have found it almost impossible to register. The irony of the situation is that Bechtel says it is looking to maximise Iraqi content, as part of the goal of institution building over the medium term. Indeed, Elkins emphasised that companies using Iraqi resources would be looked on favourably in subcontract bidding. 'There is not a fixed requirement for employing Iraqis, but if you want to differentiate yourself from the other bidders, then be in Iraq,' he said. 'Today some of your competitors are in the field - they are ahead of you. If you want to play a part, you need to be in Iraq, employing Iraqis.'