Sources at the PMO say the one-year indefinite delivery, indefinite quantity (ID/IQ) contract requires the supply chain specialist to provide a comprehensive logistics service, which includes the construction of warehousing and distribution facilities, storage of materials, supply of materials and security. The contract has two one-year extension options.

Under an initial $16 million task order issued in mid-June, PWC is required to renovate and operate two existing warehouses. The contractor is expected to be tasked in the near future with building two new warehouses (MEED 11:6:04).

A key objective of the contract is the introduction of an internet-based real-time movement control system that will allow the tracking of materials as they enter and are distributed around the country. Future work packages will include the construction of a 24-hour-a-day, seven-day-a-week logistics control centre.

The PMO says the award of the logistics contract is essential to prevent shortages and maintain security as contractors on its reconstruction programme seek to source materials. The PMO estimates that $3,500 million worth of materials are needed on the programme. It also hopes that the supply chain network established by PWC can form the basis of a permanent national logistics infrastructure (MEED 11:6:04).

The PMO says that by mid-June, 114 projects worth a total of $1,900 million had been commissioned under the reconstruction programme. These include 18 projects in public works, 12 in oil, 14 in transportation, 28 in electricity, 32 in security and 10 in construction.

PMO director David Nash says he anticipates that some $10,000 million will be committed by the 1 July transfer of sovereignty for construction services, materials and security equipment under the $18,400 budget supplemental awarded by Congress in November. The PMO adds that 8,700 Iraqis are employed on the programme.