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Transforming the procurement system of Iraq.

Publication: Defense A R Journal
Publication Date: 01-DEC-06
Format: Online
Delivery: Immediate Online Access

Article Excerpt
The Department of Defense has been in transformation since 2001. Four major areas of emphasis for transformation are: major systems acquisition; joint planning for military operations; planning, programming, and budget execution; and the rewrite of the Defense Supplement to the Federal After...

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...Acquisition Regulation. the cessation of hostilities with Operation Iraqi Freedom, a transformation process began to occur in that country, which is critical for the economic development and progress of Iraq. One transformation event is the creation and sustainment of a new procurement and contracting process. This transformation must create on environment for a public process that is built on fairness, best value, and competition.

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In the aftermath of World War II, provisional governments were implemented in Germany and Japan. Many American institutions were used as a template for creating capitalist business practices and processes. Due to the success of the Marshall Plan in Germany and the efforts of General MacArthur in Japan, each country prospered and became an economic giant in world commerce. In the period of time before World War II, these two countries operated a fascist system, which transitioned in the post-war period to a capitalist system. During Saddam Hussein's regime between 1979 and 2003, Iraq was also using a fascist economic model, and during this period, major infrastructure investment had not occurred.

Even though Iraq has the potential to be the world's second largest producer of oil and energy products, the Hussein regime did little other than to focus on military development and modernization. Roads, electrical grids, telecommunications, internet operations, and many other infrastructure support mechanisms were in need of replacement of repair. Following Operation Iraqi Freedom, the Coalition Provisional Authority (CPA) was set in place to establish political and economic stability. The CPA quickly set in place a number of orders and memoranda to establish structure for a future Iraqi central government and economy. A major effort to institute infrastructure, banking, commercial, social and political systems was undertaken.

The United States and its coalition partners realized in order for Iraq to be a viable, competitive player in the world economy, many types of transformation had to occur. One critical transformation is the public procurement and contracting process. Iraq did not have a functional, organized procurement and contracting system, with regulations and an established process.

During the initial stages of post-war Iraq, Ambassador L. Paul Bremer, CPA Administrator, prioritized a need for the United States to set up a framework and process for an Iraqi procurement and contracting system. After the military combat period, the American Army was the largest military component in Iraq and had an operational contracting staff present. The Acting Director of the Army Contracting Agency, Mr. Mark Lumer, SES, and his staff aggressively implemented the establishment of a contracting process and framework for Iraq. The involvement of Brigadier General (RES) Scott Castle, Head of Contract Law, Colonel Anthony "Tony" B. Bell, Head of Contracting Activity, and Lieutenant Colonel Andrew "Andy" Hughes, Chief of Contract Operations, was critical to the success of this effort. Since the coalition process required the cooperation and agreement of thirty countries, this was a significant challenge.

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NOTE: All illustrations and photos have been removed from this article.



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