State To Flip-Flop on Iraq Contracts

From the New Standard:

As a partial remedy to cost overruns and ongoing security problems, the State Department report recommends finally shifting work to Iraqi sub-contractors, acknowledging that they are "less susceptible to insurgency attacks," and that they are "not burdened by the same heavy overhead expenses of foreign firms."

The State Department reports that the new stance is part of an effort to reallocate $832 million in funds from long-term construction to smaller, more immediate projects focused on the operation and maintenance of public works facilities and job creation for Iraqis.

So far, US and British companies have received 85% of the value of all contracts (paid for with funds derived from Iraqi sources and reallocated by the Coalition) awarded for reconstruction work in Iraq. Most are woefully mismanaged and 6 months or more behind schedule. Private Iraqi firms received just 2 percent, all for contracts of less than $50,000. The Coalition Provisional Authority also refused to award contracts to state-owned companies in Iraq, which in many cases were most qualified to do local reconstruction work as they had already done the post-Gulf War One reconstruction.

Unemployment is at an all time high in Iraq and is a major factor fuelling resentment. It's about time the State Dept. saw sense on this - maybe now the administration will adopt the rest of my plan too?

As an aside, you do realise that this means the neocons are very much out of favor over at the State Dept. don't you?