Of the $18.4 billion that Congress appropriated for Iraq relief and reconstruction in fiscal year 2004, the Department of Defense (DOD) received the largest share--$13.5 billion. As of September 30, 2006, DOD had obligated about $13.1 billion and disbursed about $9.7 billion--$5.6 billion for construction, $3.6 billion for nonconstruction (e.g., engineering, procurement, and the delivery of equipment), and about $480 million for related overhead costs. Among the many contracts DOD uses in Iraq, DOD has obligated about $3.7 billion for 12 large-scale, multiple-year design-build contracts for major construction projects. The design-build contracting approach makes one award for both the design and construction of a project, thus eliminating the need for a separate bidding process for the construction phase. To help Congress monitor the current progress and costs of DOD's reconstruction activities in Iraq, this report discusses (1) the status of the current construction work and targeted completion dates and (2) the support costs incurred by the design-build contractors in DOD's construction program.
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