Page 241 - Global Project Management Handbook

12-2 COMPETENCY FACTORS IN PROJECT MANAGEMENT

two objectives, contracts were awarded to private-sector firms on a cost-plus basis.
Using the cost-plus approach accelerated implementation two ways: (1) Contractors
could mobilize to Iraq immediately, and (2) projects could be started before detailed
project scopes were defined.

IRRF I

Cost-plus contracts to implement IRRF I were quickly awarded to two major interna-
tionally known design-build (DB) contractors. One contractor was to focus on
rebuilding Iraqi oil (RIO) and the other contractor on rebuilding Iraqi electricity
(RIE). Implementation of RIO and RIE began in the summer of 2003.

IRRF II
Characteristics of IRRF II funding and program implementation were as follows:
● Funding was directed to specific sectors. In the IRRF II appropriation, 10 sectors
were defined, and to implement the program, the 10 sectors were regrouped into
6 sectors. Thus, while project funding by law is specific to 10 sectors, this chapter
will discuss the program in terms of the 6 sectors defined and used in project imple-
mentation. The funding by sector was as shown in Table 12.1.
● The law provided the implementers of the program some flexibility to move money
between sectors as the need to rebudget or adjust the programs occurred. Specifically,
the implementers of the program were provided the flexibility to move up to 10 percent
of the funding out of any given sector, and the funding for any given sector could be
increased a maximum of 20 percent. Reprogramming amounts greater than 10 percent
out of a sector or 20 percent into a sector required Congressional approval.
● The $18.4 billion funding was further broken down into $12.4 billion for recon-
struction projects and $6.0 billion for nonconstruction items. The largest noncon-
struction budget was approximately $4 billion for equipment, vehicles, supplies,
weapons, and ammunition for the Iraqi army. Examples of other nonconstruction
budget items included lab equipment for hospitals and trucks and other vehicles for
various programs.

TABLE 12.1 IRRF II Funding by Sector
Sector IRRF II Funding

Buildings, health, and education (BHE) $1.05B
Electricity $5.50B
Oil $1.70B
Public works and water (PWW) $4.20B
Security and justice (S&J) $4.70B
Transportation and communication (T&C) $0.87
Administration and other $0.39B
Total $18.40B