Outcome, Cost, and Oversight of Water Sector Reconstruction Contract with FluorAMEC, LLC

Public Law 108-106, as amended, requires that the Special Inspector General for Iraq Reconstruction (SIGIR) prepare a final forensic audit report on all amounts appropriated or otherwise made available for the reconstruction of Iraq. To fulfill this requirement, SIGIR has undertaken a series of audits examining major Iraq reconstruction contracts. The objective of these audits is to examine contract outcome, cost, and management oversight, emphasizing issues related to vulnerabilities to fraud, waste, and abuse. This report also focuses on the problems associated with the transfer of completed projects to the Government of Iraq (GOI). This report, the sixth in the series of focused contract audits, examines reconstruction work contracted by the U.S. government and performed by FluorAMEC, LLC. In March 2004, at the request of the Coalition Provisional Authority (CPA), the Naval Facilities Engineering Command awarded FluorAMEC a cost-plus award-fee indefinite-delivery/ indefinite-quantity contract (W914NS-04-D-0022) to provide design-build projects in the water sector in southern Iraq. In addition to a task order for mobilization into Iraq, FluorAMEC was issued four construction-project task orders: Nassriya Water Supply (Nassriya Project) Basrah Sewage (Basrah Project) Diwaniya and Daghara Water Supply Project (Diwaniya Project) Najaf and Kufa Water Supply Project (Najaf Project).