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QUESTION: "Disclose how Iraqi assets are being used in reconstruction. The
administration should disclose what laws and procedures govern the Coalition
Provisional Authority or other U.S. government entity when it enters into contracts with
non-Iraqi companies using Iraqi funds, and describe compliance with those laws and
procedures. The administration should disclose all such contracts, the CPA or agency
identified, and solicited offers from, contractors, together with a list of the contractors
solicited."' · ·· ·
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ANSWER:
1. Use of Iraqi assets is governed by the International Emergency Economic Powers Act
and the laws and usages of war.
• The Coalition Provisional Authority (CPA) process for allocation of funds is
attached (Tab A).
• The procedures being used by the Coalition Provisional Authority to award
contracts using Iraqi assets are found in CPA Memorandum No. 4, Contract and
Grant Procedures Apphcable to Vested and Seized Property and the Development
Fund for Iraq, dated 19 August 2003 (Tab ~and available at www.cpa-irag.org).
These procedures were developed based upon the U.S. Federal Acquisition
Regulation, along with internationally recognized contracting procedures.
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2. Iraqi assets --vested, seized, or Development. .Fund for Iraq-- are being used as
follows:
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• A summary of all Iraqi assets used in reconstruction is attached (Tab C).
• Development Fund for Iraq (DFI) assets totaling $1.1 billion, of the $2.5 billion
available as of September 30, 2003, have been allocated by the CPA. The DFI
assets are being used to finance emergency fuel imports, currency exchange, and
various security and infrastructure projects. A list of contracts funded with DFl
assets is attached (Tab C-1).
• All of the Iraqi state assets, both vested and seized, totaling $2.6 billion have been
allocated by the CPA for the benefit of the Iraqi people. The Iraqi assets are
being used to finance the salaries of Iraqi civil servants, regular payments for Iraqi
pensioners, construction program projects, and other critical relief and
reconstruction activities in direct support of the Iraqi people. A list of contracts
funded with seized assets (Tab C-2) and vested assets (Tab C-3) are attached.
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CPA PROCESS FOR THE ALLOCATION OF FUNDS
1. Overview and Objectives
2. Key Terms
3. Role of the Program Review Board
4. Role of the Project Review Committee and Staff
5. Role of the Regional Directors
6. Fund~ng Request Proces~
7. Allocation Process
8. Disbursement Process
1. Overview and Objectives
The CPA is responsible for administering, using and accounting for vested and seized
Iraqi property and the Development Fund for Iraq. In addition, the CPA must propose
expenditures from the U.S. Iraq Relief and Reconstruction Fund (IRRF) for execution of
relief and reconstruction ·programs in Iraq. The CPA has established the Program Review
Board ('·Board") to carry out responsibilities as defined in the Coalition Provisional
Authority Regulation Number 4. The CPA has further established a Program Review
Committee ("Committee") to support the work of the Board in carrying out its
responsibilities under this regulation, which witl employ staff in sUpport of these
functions. When budgeting expenditures from these various sources of funding, it is
important to ensure that to the maximum extent possible, consistent with local conditions:
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Program funding requests undergo a rigorous review
Program funding requests are consistent with the Coalition Provisional
Government's policy and security objectives
Program funding requests are properly coordinated within the CPA
Program funding requests are prioritized
Projects are funded from the most appropriate funding source
Projects are not duplicative
Projects can be implemented through the most effective, efficient meGhanisms
Projects are coordinated with Iraqi officials or community repres~~tatives,
Coalition partners, NGOs and international donors
Projects are presented to intemationa1 donors to attract outside funding
Projects are appropriately monitored
Program funding requests are expeditious]y reviewed, decided, and disbursed.
2. Key Terms
Appropriated Funds: Funds made available to the U.S. President or a U.S. executive
agency by the U.S. Congress, in a duly enacted appropriations act. The primary source of
appropriated funds for relief and reconstruction activities in Iraq is the $2.475 billion Iraq
Relief and Reconstruction Fund appropriated to the President in the Emergency Wartime
Supplemental Appropriations Act, 2003. These funds remain available for expenditure
until September 30, 2004.
1 TABA
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CPA PROCESS FOR THE ALLOCATION OF FUNDS
Vested Assets: Funds of the former Government of Iraq that have been confiscated from
U.S. bank accounts and provided to the U.S. Department of the Treasury, pursuant to the
lntemational Emergency Economic Powers Act, as amended. Vested funds are available
only for the purpose of assisting the Iraqi people and assisting in the reconstruction of
Iraq.
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Seized Funds; State- or regime-9wned cash, funds, or realizable securities found in Iraq
by Coalition Forces, and taken under their possession and control pursuant to the laws
and usages of war. Seized funds may be used only to assist the Iraqi people and support
the reconstruction of Iraq.
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Development Fund for Iraq: A fund held by the Central Bank of Iraq, and capitalized by:
a $1 billion transfer from UN escrow accounts; all proceeds from export sales of
petroleum, petroleum products and natural gas from Iraq~ funds of the previous
Government of Iraq located outside Iraq and frozen by Member States, and certain other
sums. The Development Fund for Iraq is available for humanitarian assistance., economic
reconstruction and repair of infrastructure, disa1 tnament, Iraqi civil administration, and
other purposes benefiting the people of Iraq.
Apportionment of Funds: The process whereby the White House Office of Management
and Budget (OMB) authorizes the transfer of U.S. appropriated funds from a central
appropriations account (in this case, usually the Iraq Relief and Reconstruction Fund) to
the particular U.S. executive agency (the Departments of State, Defense, Treasury, Health
and Human Services, or AID) that wiH expend the funds.
Allocation of Funds: The process of dividing total available resources among various
categories, by establishing specific monetary amounts that will be available for particular
purposes.
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Obligation and Disbursement of Funds: An obligation of funds legally binds the
government to pay a specific amount of money to an individual, contractor, organization
or other entity. A disbursement occurs when funds are transferred from t~e possession of
an official of the Coalition Provisional Authority to a non-Coalition payee (usually a
contractor or an Iraqi government official).
3. Program Review Board
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The Board is responsible for preparing and submitting to the Administrator for. approval,
a1location requests that identify, integrate and prioritize requirements for the relief ~d
recovery activities in Iraq, and proposes allocations of available resources to meet those
requirements. The specific roles, responsibilities and membership of the CPA Program
Review Board are set forth in the CPA Regulation No. 4, Program Review Board
· (June 17, 2003).
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CPA PROCESS FOR THE ALLOCATION OF FUNDS
4. Project Review Committee and Program Staff:
The primary function of the Project Review Committee is to conduct the initial review of
al1 program funding requests and project submissions, categorize them, and make
recommendations to the Program Review Board for the allocation of funds based on the
objectives set forth above. The Staff will assist the Board and Committee in carrying out
their functions as identified in CPA Regulation No.4, Program Review Board
(June 17, 2003) and instructions promulgated in implementation of that Regulation.
Program Staff will coordinate and manage the funding proposal and approval process for
the Development Fund for Iraq, the vested and seized asset accounts, and the Iraq Relief
and Reconstruction Fund. Program Staff report directly to the Program Coordinator and
be responsible for:
L Distributing and providing procedures and guidance to all CPA entities including
Ministry Advisors, Regional Directors, the Coalition International Council and
CJTF-7 commanders on the process for submitting funding requests to the Program
Review Board
C: Receiving all project funding requests and working with proponents to ensure the
applications contain all necessary information.
L. Ensuring that the funding requests/project proposals have undergone the required
prior review at the regional or ministerial level prior to subm.i~sion to the Committee.
[ Identifying, reviewing and recommending appropriate funding sources, in
coordination with the CPA General Counsel
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[. Reviewing and recommending mechanisms for project implementation
[ Creating and maintaining a database tracking system for all funding requests
received and project disposition
· [ Entering al1 data into the database tracking system for al] project proposals
[ Distributing copies of all project proposals and necessary infounation to aJI
members of the Committee for consideration.
C Coordinating any informational requests from the Committee and Board
[_ Organizing meetings of the Committee and Board and preparing necessary
materials.
r Creating official records of the Committee and Board meetings arid implementing
decisions made by these two bodies.
[ Obtaining additional information for CPA when required.
[_ Converting the recommendations of the Board into allocation requests for the
CPA.
C Distributing CPA decisions to the program proponent, members of the Board and
to the Comptroller for funding disbursements or accounting line cite
L. Working with the CPA Comptroller on ·disbursement of funds and mechanisms
for disbursement
[ Tracking status of fund balances of available funding, including within program
categories
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3 TABA

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CPA PROCESS FOR THE ALLOCATION OF FUNDS
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5. Role of the Regional Directors
All Regional Directors must establish mechanisms by which projects generated in the
governorates are reviewed and prioritized at a regional level. Regional Directors should
establish a committee or other process to vet and recommend projects to the Board
requesting vested or seized assets or funds under the Iraqi Development Fund. To the
extent possibl_
e, coordination should be done with the national level, such as Senior
Advisors to the Ministries. · ·
6. Funding Request Process:
The Program Review Board will receive requests from a number of sources but primarily
from Military Commanders, Regional Directors and Ministry Advisors. All funding
requests will be reYiewed in accordance with the following review and approval process,
as expeditiously as possible.
Field Requests: Field Requests are generated from Division and Brigade Commanders
and CPA civilian staff who fall under the Regional Directors.
Division, Brigade Commander, and Regional Director's Emergency Response Funds-
- All funding requirements that faJl under the delegated authorities (Division
Commanders $100,000 per project, Brigade Commander $50,000 per transac~ion;
Regional Director $100,000 per transaction) can be approved and funded within their
discretion from the Emergency Response Funds.
- A Request for Funding For rn (PRB 01) should be completed for all projects and
completed copies should be provided- to the Program Coordinator. (Note: Division and
Brigade Commanders and Regional Directors should exchange PRB 01 fonns to ensure
coordination.)
- At the depletion of available funds, submit a request for replenishment to the
Program Coordinator. Note: Expended funds can be replenished upon submission of
completed PRB Forms, PRB Ol .
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Funding Requests in Excess of Delegated Authorities -
- All program funding requests over delegated amounts must be considered by the
Board and should be submitted on a Funding Request Form (PRB 01) to the Program
Coordinator.
- Requests should be coordinated with the Regional Directors and, to the extent
possible, for ministry activities, with the Ministry Advisor. (If this coordination is riot
possible at the regional level, the coordination will be done by the Program Coordinator.)
Ministries/Other Entities in Baghdad:
4 TABA

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CPA PROCESS FOR THE ALLOCATION OF FUNDS
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All requests 1n any amount, which are not contained in a Ministry Budget, must
be submitted on a Funding Request Form (Fonn PRB 01) to the Program Coordinator,
after appropriate coordination with Ministry Advisors or municipality.
7. Allocation Process:
The goal is to process funding requests in 48-72 hours. The more complete the Funding
Request Forrn, including the demonstration of coordination with relevant parties. the
faster the approval process will proceed.
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- All re· quests will be submitted to the Program Coordinator or Program Staff(see
separate Instructions.)
- When the fom• is sufficiently complete, it will be submitted to the Project Review
Committee for review. The Committee will meet every other day .
. Recommendations wi11 be submitted to the Program Review Board for approval. ·
- Board recommendations for programs under $200,000 will be submitted to the
CPA Comptroller for disbursement.
- Board recommendations for programs over $200,000 will be submitted to the
CPA via an Allocation Request.
- Allocation decisions of the CPA will be distributed by the Staff to: the Board, the
Committee, the Regional Director (for further distribution to Military Commanders), the
proponent, and the Comptro1ler for payment.
8. Disbursement of Funds
The CPA will publish specific procedures for disbursing the various types of resources
that the CPA Program Review Board will be responsible for budgeting.
- Appropriated funds will be disbursed in accordance with applicable federal Jaws
and regulations, including Title 31 of the United States Code, and the Federal Acquisition
Reg. ·
- Vested and seized funds wi lJ be disbursed in accordance with applicable
Appendices to the Procedures for Administering, Using and Ac. counting for Vested and
Seized Funds, approved by the U.S. Deputy Secretary of Defense on May 29, 2003.
- Funds from the Development Fund for Iraq will be disbursed under procedures
that ensure transparency and international confidence in the manner in which the CPA
uses the Fund on behalf of, and for the benefit of the Iraqi people.
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COAIJ'uON PROVISIONAL AUTHORITY MEMORANDUM
. CONTRACt AND GRANT PROCEDURES
APPLICABLE TO VES'I•Eo AND SEIZED IRAQI R ANDTBR
DEVELOPMENT FUND FOil IRAQ .
IMPLEMENTATION OF REGULATION NUMBER 3, PROGRAM REVIEW
BOARD (CP AIREG!ll Jaae 1003!03)
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Pursuant to my authority as Administrator of the Coalition Provisional Authority (CPA)
and the laws and usages of war, and CODSiatcnt with relevant U.N. Security Council
raolutions, iDcluding Resolution 1483 (2003),
Undencoring that the Development Fund for Imq (DFI) shall be used in a transparent
manner to meet the humanitarian needs of the Iraqi people, for the economic .
recons1ruction and repair of Iraq's infrastructure, for the continued of Iraq,
and for the costs of Iraqi civilian ad•ninistration, cd for other puip06C8 bc1Jcditing the
people of Iraq, and that the Progtam Review Board as authmized by CPA Regulation
Number 3 (18 June 2003) is responsible for rccoJmncnding expenditures of resources
nom the DFI. •
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Noting that Resolution 1483 (2003) states that independent public accouut•nts approved
by and repoa:ting to the International Advisory and Mooetar'y Boani (IAMB) shall ~
the PFl to ensure that the DPI is used exclusively for the Slated in Rcsolutioli
1483 (1003),
Reaffirming that the CPA is CODIDlittcd to ensuring that all state- or regime-owned cash,
funds or realizable securities tbat have been seiu.d by Coalition Forces in Iraq consistent
with the laws and usages of war, sbatl be used only to assist the Iraqi people and support
the reconstruction of Iraq,
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lmplementi11g CPA R.egulaticm Number 3. Program Review Board (CP AIRBG/18 June
2003/03), . .
I hereby promulgate the following:
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Purpose
This memorandum establishes procedures· applicable to the execution of contracts and
g~ants for the benefit of the Iraqi people using Iraqi Funds, u defined herein. As ~
CP A/MEM/19 AUGUST 2003/04
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for the Iraqi people, the CPA will manage and spend· haqi Funds, which belong to the
Iraqi people, for their benefit. Although haqi FUDds are not subject to the same laws and
regulations that apply to fimds provided to the CPA directly fiom Coalition governments,
they shall be manascd in a b:•nspareat manner that fully COmpo& with tbe CPA ••
obligations under·mtcmatioDallaw, including Resolution 1483.
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Section l
AppBcablllty
This Memomndum applies to couttac18 and grants . c:xccuted by or on behalf of the CPA.,
when those instruments obligate and expend Iraqi Funds. It covers contracts aDd gtantl
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1) CPA Regional Directors carrying out the Regional Directors' Emergency
Response Program; .
2) CPA Regional Directors carrying out the Ccmstmction lDitiativc for Iraq
Progmn; .
3) Interim Ministry Officials, working in conjunction with Senior Minisby
Advison, whcu Carrying out requirements that arc not fimcled ~gh the
national Ministry budget process;
4) CPA's Head of Contracting Activity, or designee( a), aud
S) Others delegated such authority by the Administrator. '
This Memorandum does not apply to: .
1) Iraqi Minisb:ies and govcn•mental agencies executing conhacbl or grants to
fulfill requirements ~ tbroup the natioual budget process if the
Administrator, or his designee, detenninea that the contracting of
the Ministry or agency is adequate to CDSUIC 1he bansparent use and
management of Iraqi funds. However, if the conta:acting proccdnres of the
particular Ministry or agency are not deterntined to be adequate, this
MeDJotandum shall apply. and
2) Coalition Forces conntlanders ca•'eying out the Commanders' "R~
Response Paogt•m. The ' Emergency Program will
use the procedures contained in FRAOO 89 (Appendix E) or any
subsequent ameDded guidance to PRAGO 89.
Sectloa 3
·DeftaitiODI
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1) "Competitive Range .. : A group of proposals that ate eligible for awud of a
particular contract or gxant, u · by a Offitez' on the buis of
cost and other factors stated in the solicitation.
2) ''Con~t": A written agreen:-ent whereby the CPA or Coalition Forces aequite
goods, services or construcnon from a person or outity UDder pracribed terms and
conditions. for the purpose of assisting tbe Iraqi people 01' assistiDa in the recovery
of Iraq.
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3) "Contract Award Committee,.: AB used in this Memorandum, a group oftbrce or
more officials selected by the Officer appointing authority reapousiblc
for reviewing preJ.iminary award decisions of I .argc Purchases for cou~pliance with
this Memotandum and sound business judgment. The Conllact Award Committl'c
need not convene as a group; however, except as provided in Section 7 below, a
majo1ity of the membets must concur in the award decision prior to awatd.
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4) "Contracting Officer": AB used iD this Memorandum, an individual who bas been
authorized by the Administrator, CPA, in accorda.Dce with Section 4 below, to
enter into Conti acts or Grants using Iraqi Funds.
5) "Grant": A written instrument that haqi Funds ftom the CPA or Coalition
Forces to a recipient grantee. in order to ceuy out a program or project tbat directly
benefits the Iraqi people or assists in the recovery of Iraq. .
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6) "Invitation for Bids'': An invitation to prospective contractors to submit proposals
to.ancct CPA tuplimucnts. An invitation for bids descn'bes a requirement for a
prospective contract by explaining the Daturc of the opporbmity, including the
goods or services to be provid~ requiml pcrforar•ance, the time for pcrfotnJaDcc,
requirements to demonstrate the responaibility of the potential 80WCC, UDique
requirements, the closing date for bids, and other information necessary far a
potential source to submit a bid. With an IFB, the award ia dctcrmine4. solely on
the basis of price or price-related factors.
7) "Iraqi-based": A company (including a subsidiary coxnpany) whose p1incipal
p1acc of is located within Iraq.
8) "Iraqi Funds": Funds under the control of the Autbotity · · of(a) p1oc=da
fro•n Iraqi state-owned propct ty that has ~or seized in accordance with
-..pplicablc law and made available to the CPA to assist the Iraqi people and assist
in the recoDstructioD of Iraq; and (b) f\snds in the Dcvcloprnent Fund for haq, 1hc
establisbmcnt ofwhieh is noted in Resolution 1483 (2003). ABused in this ·
· Memorandum, •1mqi Funds" do not include funds provided through the
appropriations process of Coalition member govmnmcmta (for example, fun~
CPAIMEM/19 AUGUST 2003/04
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· provided directly to the CPA by the
Kingdom). · ·
of the United States or the United
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9) "Large Purchase'': A contract with a value of gteatcr than US$500,000.
1 O)''Micropllfehasc~: A contract with a value ofUSSS,OOO or less.
11) •'RCqucst for Proposal": An invitation to prospective contracton or pant
recipicnts to submit proposal~ to neu;t CPA A request for proposal
usually includes a description of a rcquirmumt for a prospective Contract or Grant
that explains the'natnre ofthc opportUDity including the goods or set vices to be
provided, required perforiDIIlce, the time for pcrf'ounance, the evaluation criteria
for Contract award, rcquimnenta to demonstrate the m;pcmsibility of the potential
source, unique · ts, the closing date for proposals, and other information
nccessa• y for a potential source to submit a proposal.
12)"Snmll Purchase": A contract with a value g~eater than USSSOOO and less than or
equal to US$500,000.
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13)"Solicitation": A request to submit offers or quotations to fulfill a requirenacnt for
goods or services tbat can be met through a Contmct. "Request for Proposal" and
4'ln'ritation for Bids" are types of solicitation.. ·
· Section 4 •
AppoiDtDleDt o.f Contractlag omcen
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1) General. For the purpose ofcauying out programs to assist the Iraqi peopl~ and
assist iD the recovery of Iraq usjng Iraqi Plmds, the officials identified in
2 may appoint ContractiJJs Officcrs who may enter into Conttacts or o:-ran ...... ts OD
behalf of the CPA. Unless otherwise tetarinatcd by the AdmiDiatrator, this
delegatiOD shalt remain in effect until the of an intematiODally
recognized, 1epreseatative govaument by the people ofhaq .
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2) The folloWing officials arc authorized· to appoint Contracting Officers within their
directomtea, commands or organizations, in writing ad in a form by the
Head of Contracting Activity, CPA, in consultation with the CPA General
Counsel:
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Head of Contracting Activity, CPA, or the Principal Assistant Responsible
for Contracting, CPA;
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CP AIMEM119 AUGUST 2003104 4

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b) CPA ~tors of Oil Policy; Civil Affairs; Econonaic ~lopmeat; AID;
Opemtions and Influh ucnn; Interior Affairs; Private Sector .
Development; and Security Affairs.
c) Senior Iraqi MitristrY. Adviaom, in coordination with the interim Iraqi
Ministers, for contracting ofticws within the ministry conccmed, and.
d) Other persona specifically authorized by the Actudnisbator.
3) ln exercising their autbmity to appoint Officers~ the officials listed in
pamgxaph 2 above shaD consider the and experience
· appointcca and shall, to the CA1ont pmcdcable, confer ~ Officer authority
on those OftiCCIS already holding Coalition IO"Qnment contncting Watlautl
and/or experience as continge:ocy conttacting officcra or·ficld oldcring ofticaa.
1bc Head of Activity, CPA, with the approval of the Aduaiaistrator,
may prescribe additioual · ts (such as completion ofprcscn"bcd tmning
that pctsoos must hold prior to~~ · Officer
appointments.
4) Contracting Officers respansiblc for canying out programs must actively
coordiuate proposed funding initiatives with all other Contracting and Grant-
making officials in their geographic are8S, in order 1o eDSUte duplication of
effort.
Seetloa 5
Teehaleal Supervision of Cootractbag Offleen
The Head of Contracting Activity, CPA, shall be respoDSl.Dle for providing technical
supervision over Conbacting Officers appointed pursuant to Section 4, above. This
technical supervision may include prescribins bainiug and
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appzoptiate founs for use in solicitations. contract awards, and pant awmda. · For
contracting officers assigned to the CPA Conb:acting Activity, the Head of Contracting
Activity, CPA, shall provide •«<ministlative OVCisight_ as wen II technical supervision.
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Principles AppDeable to laltrumeDtl
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1) Identification of Partie.s. Contracts and Grants must prominently CODtaiD_ the
folloWing language tO identify the paltiea:
CPAIMEM/19 AUGUST 2003/04
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"This contract/grant is entered into under the authority of the Admimsb:ator
as head of the Coalition Provisinual Authority (CPA), which is tentpOiarily
exercising govcranocntal anthority in lmq to the law ad of
war aDd relevant United Nationa Security Coamcil Resolution•, includiDg
Resolution 1483 (2003) ("Coalitionj and by
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2). CgmpctitiQD.
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a) Contracts. Unless otherwise excanpted under this Memorandum,
competition is mandatory for all Cuntrac11. Reascmable etfot ts will be
made to obtain COlllpCtitive otraa by publicizing a solicitation through
bulletin boards, the CPA World Wide Web page, the UNDB, vcmdor
· databases developed by the Head of Contracting Activity, aDd othor mCIIIs.
If circumstances require awanf of a contract without coanpetition. a written
justification describing the exigencies requirlns · without
competition will be documented in the Coutract file. CoD1racts wiD be
awarded to the offer providiDg the greatest value to the CPA or 'LA
Forces, based on price and all other evaluation factots contained in the
solicitation.
b) Grants. Reasonable effmts will be n~&dc to identify all organizations
~able of performing the Grant. Grants in c:x~s of$500,000 wiD be
tende~ed for proposals by capable organizations, except as authot jzed for
good cause, m writing, by the ofticial that appointed the Contracting
Officer involved
3) fntfCimC?C for IraQi Vend9n. IIaqi·bascd vendors who arc capable ofpcrfo11aing a
Contract or Grant in a responsible and responsive manner will be afforded the
following preferences when competing with foreign firms. If the Contracting
Officer dele!• niDcs that at lcut two Iraqi-based vendors are available, 1bc
Contracting Officer may limit tho competition to Iraqi-based vendors only. If the
Contracting Officer deteuuines that limiting competition to Iraqi·bascd vendors is
not appropriate, the Contracting Officer may use the amount of Iraqi participation
in the contract (as a subcontractor or otherwise) as an evaluation criterion for
purposes of who is entitled to the award of the contract.
4) I! · The Contracting Officer must dctcrmine that the price
of a contract is fair and reasonable. Prices for goods and services will not exceed·
their fair mark.et value as determined by the Contracting nA::
considering the time for delivery or urgency of tbc service, and other relevant
factors.
CPA/MEM/19 AUGUST lOOl/04 6
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5) ~ I . cs Contracts or Gnmts adndnistueJ under this Memorandum
will not directly or mdirectly benefit any Ministry, CPA or Coalition
official or employee invQlved in the contlacting or· process, or the
.family members of su~h officials or muploycca. Persona i!lvolved in the
contracting pzocess, fron1 ~- development of the requirement through the
completion ofpcrfOiuumce, shall not
e) Use public office for private gain
An official or employee of the CPA or Coalition Forces involved in the
contracting process sball:
a) Act imp11tially and not give preferential treatment to any private
organization or individual.
b) Disclose waste, tiaud, abuse, and couuption to appropx iate au~orities.
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c) Endeavor to avoid any actions creating the appearance that they are
violating the taw or ethical stanclarda.
6) a) Hold financial interests that conilict with the CODICientious perfouuaucc of
duty. .
b) Engage in financial transactions UBiDg nonpub1ic Goveunncnt information
or allow the improper use of such infonnation to fua ther uy paivatc
m~ .
c) . .
Solicit or accept any gift or other item ofmonetaay value fro1n any person
or entity seeking official action from, doing business with, or conducting
activities tegulatcd by the CPA, or whose · may be substantially
affected by the perfonnance or Donpeiformance of the cuaployee' s duties.
d) Knowingly make unauthorized comnaitments or
purporting to bind the CPA.
of any kind
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To the extent practicable, requirements for a
project or rclawi projects may be consolidated into one contract, in order to reduce
the administiative burden of contracting. Requimncnts ~y not be split to avoid
the applicati~ of these rules.
7) &es,ponsibility. Contracting officeas must detmnine tbat a a contract award must be responsible. This means that the CODtractor must:
who J:Ueives
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CPA/MEM/19 AUGUS"t 2003/04 7
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a) b) c) d) c) f) g) •
Have adequate financial resources to pcrfo1m the contract, or the ability to
obtain them; · · ·
Be able to comply with the roquimi or proposed deHvery or perfonnance
~ule, taking into ~deration all existiiq con•n•crcial and
govcnuuental buaincss commitments;
Have a satisfal:tory pedbrmance record, if the contractor has performed
contracts in the past; ·
Have a satisfactory record of intepity and business ethics;
Have the necessary organization, experience, accounting and operati~
controls·
, and technical skills. 91' the ability to obtain thent;
Have the Decessaiy production, construction, and technical equipment and
facilities. or the ability to obtain them; and
Be othet wise qualified and eligible to receive an award under applicable
laws and regulations. ·
SectloD 7
Coabacts
1) Micro-Purchases. Contmcts may be awarded without eotnpctition
if the Conttacting Officer deter! nines that the offered price and terms are ~ and
~onablc. However, Contracting Officers are cncoumgcd to obtain competition
when possible. Oral solicitations may be used. Micro--Purchases will be
documented in summary files demonstrating competition (if any), basis for award
(if o1her tban lowest price), and material terma. the documentation will be
tailored to the size and nature of the acqu;sition.
2) Small Purchases. ContraCting Officers, when posaiblc, will obtain at least three
competitive otras for Small Purchases. For SmaU Purchases nom $5,000.01 to
$25,000, oral solicitations may be used; however, Contracting Officers must
maintain documentation of sources solicited. For Small grc.atcr than
$25,000, written soHcitatioas will be used. Sufficient mfotruation will be included
in the corrtract file to enable a review oftbe transaction, including evidence of
cxnnpctition or the basis for contracting without coanpctition, price quotations, and
the basis for the contract award if price is not the factor. Written ·
justifiea~oas detailing the unique qualifications of the or other exigent
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CPA/MEM/19 AUGUST 2003/04 8

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circumstances rcquirmg an award without cooipetition will be prepared for Small
Purcbates. · for justifications are contained in Appendix A.
a) Blanket ~base Agreements. Officeta arc CDCOUt'&ged to
blanket purchase agreements for R;petitive requiren1emtB to reduce
administrative burdens and to obtain favorable
b) c) All Sman Purchase contracts will eontlm payment 1m11as including an
agreed upon payment schedule (preferably with milestones tied to
performance) for service contncta, and perfounance requirenaents clearly
defining the respouibilities and tinLo for pcrfo11nancc. Additionally, the
Contracting Officer win use appropriate contract proviaioulistcd in
Appendix B to this Memonmdum for the particular aolicitati011 or contract
involved ·
Requirements in excess of S 10,000 should be posted at a public location
and ctisscanmatcd in a manner that wiD. foster competition, ·
advertising in looal media when appropriate, through bulletin boards, the
CPA World Wide Web page, vendor developed by the Head of
Contracting Activity, and otber mcan. s. .
3) Large
a) b) . ,.
c) l.arge Pmcbase Contracts will be competed, except as authorized below.
Alll.argc Purchase contract opportunities will be posted and advertised to
the · extent practicable, with a goal of obtaining at ]east tliR:e
competitive offers.
The Head of Con1111cting Activity, CPA, will eosure that cxpaicncccl
contaacting officials me assigned to execute conttac1s UDdcmcath the HCA
and provide tecbnical assistance to all other appointed Officers
or Iraqi Mjnistry Contracting Activities with Iespect to all Large Purchase
solicitations.
Acquisitions generally will be made through negotiation. The contracting
agency will develop a Request for Ptoposal (RPP) for sub1arlssion to
• contractors. The RFP wiD set forth the essential infOt mation
necessary to fblly describe the contmctillg oppottuDity. Contracting
Officers may bold a pre-proposal conference to answer questions and to ·
clarify the R.FP, provided all prospective contracton arc iDfounccl of1hc
conference. Award evaluation facton will be tailore4 to the acquisition,
but must include price as a factor. Other factors may include technical
cxpettise, financial stability of the . contractor based upon a review of
CPA/MEM/19 AUGUST %003/04
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fiDancia1 statements, and prior contract perfonnauce. The COntracting
Officer may request final proposals from coDtractOJs in the ·
I&Dge. Based upon. the review of the propoaala. a preliminary award
decision will be made. · ·
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d) · If a officer deternaiDca that (1) time permits the solicitation.
submission· and evaluation of sealed bids; (2) award will be made only on
the basis of price or price-related factom; (3) discussions with prospective
bidders will not be necevary, and ( 4) there is a reaumable ex1-cctation of
receiving more than one sealed bid, the contlactor may, instead of an RFP,
use an Invitation for Bids (lFB) to compete the acquisition. The IFB will
set forth the essential infm 01ation to tUlly describe the.
contracting opportunity. Conttactiug Officeta may hold a pre-bid
to answer questions and to clarify the IFB provided all
prospective contract011 ate infonaed oftbe ~cnoce. Because an IFB
requires that the be clearly ltatod prior to issuing the
solicitation, IFB' s will only be by ofticenwder the direct
~trol of the Head of the Coutt~g Activity, CPA.
c) f) Written justifications detailing the mrique qualifications ofthe contractor or
. other exigent requiring an award without competition will be
prepared for all Lqc Purcbascs awaaded without cornpctition. ·
R · ts tor justific&tiona are contained in ApPc;ndix A. All Large
justifications will be teViewed and approved in writing by either
the Contracting Officer's appointing authmity or the Head of Contracting
Activity, CPA, ~his designee.
~cept for awards by Conl!acting Officers appointed by tbe Head of
Contracting Activity or the Principal Assistant Responsible for Contracting,
CPA, Large Purchase preliminary award dcclaions will be reviewed by a
Contract A ward Committee of at least three officials, by the
official who appointed the Contracting Officer for the particular project,
prior to award. The Colannittee will review tbe proposals ~ Contract file
to ensure compliance with and competition rcquire1nents, that
the contract represents sound business judgment, that the process used was
fair and impartial, and that the proposed award the best value
based upon the evaluation factma. Large Purchase pelimiuary award
by Conn acting Officers appointed by the Head of 1hc ~
Activity, CPA will be coordinated with the Head of Contracting Activity,-
CPA, or his designee, prior to award.
g) Notwithstanding paragraph 3( c) above, Large Purc;base Conn acts may be
executed in the absence of a Contract Award C ·uec, provided the
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Head ofConllacting Activity, CPA, detcimines that there are sufficient
alternative meRDB to ensure that the particular solicitation action has been
appropriately managed. ·
h) Contracting officeiS ~ encourapd to establish payment IChedules that
provide for payments u the vendor BCCOJnplisbea specified performance
milestones.
4) Contract Modifications and Amcmdments. Contract modifications and
amendments arc subject to the same documentation provisions u origioaJ
eontracts. Contraeting om=s must CDBUrC the cost of the contract modification
or amcnd•ncnt is fajr and reasoPable. Amendments or modifications that are
outside the scope of the contract or that constitute new sbould be
through new contracts.
Sectloa 8
MonltoriD& Coutnct Performance
~stcnt with their progxannnatic responsibility to cnsm e tbat contractors and grantees
properly perf01m their duties, Contractias Officers shaJJ be responsible for regularly
monitoring the post-award execution of all CoutnaciB they approve. This monitodng
process includca ensuring that the contractor provides the agreed upon goods, or
construction iJi accordance with the provisions, and that payments are made in a timely
cr. G<mtmcting Ofticen cball include iD the Contract file a written rcpo1t.
post-award perfounauce by contractors or incbMiing a final upon
completion of the Contract. Couttacting officeta aball rely upon locally available military
engineering resources in assessing all repair and ccmsttucti.on projects. All documeats
related to the establishment and execution of Contracts will be maintained in a Contract ·
file that includes the materials described in ApPc;ndix A to this Mcnaancbun.
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SectloD 9
Graats
Consistent with Program Review Board tee -
suppo1t important public initiatives.
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Grants may be made available to
1) Applieations for Grants must dCscn"be the initiative, anticipated costs and the
desired results. The applications should also set furtb objective standards for
measuring the success of the Grant.
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2) In Mritwing grant ~pplications, CODSideration shall be given to the number of
people affected by the grant and the io!p&Ct on com•mmity developrnent. Grants
sh~uld be reviewed durin& implementation and where appropriate fimds should be
made available on a schedule tied to the accomplishment of specific milestOnes
specified by the CPA or Coalition F and related to the objective measures of
·success.
3) Although t~ generally is little substantial involvmnent bctweeu the CPA or
Coalition Forces and the grantee followiDg the award of the Oraut. a gnmt
will be conducted accot"ding to a prescribed by the Head of
Contiacting Activity, CPA, in coordination with the Ofticc of the General
Couoscl, CPA, aud the grantee's pcrfonoance must be monitoml to enmre tbat the
gxantecl funds arc expended for appropiiatc puipOses consistent with the Grant,
and to assess the pantce's suitability for fUture Chants. Contracting Officen
responsible fQr sball include in the Grant tile a written report describing
post-award perfounance by or including a final BS&easmcnt upon ·
completion of the Grant
Sectloa 10
Fuada Allocated tbrouglt tbe National Budget Process
1 Funds allocated through the National Budget Process will be made available to
the intelim Iraqi Ministries in accordanc.e with the National Budget. The CPA
Office of Mauagcmcnt and Budget will allocate funds to the Iraqi Ministry of
Finance for further distribution to the Iraqi Ministries, in accordance with the
National Budget and in a JDBDDcr that will eDIUl'e appropriate transparency.
The interim Iraqi Ministries may draw on allocated tbnds by submittinJ a
request for funds to the Iraqi Ministry of' FiJumcc,.
2) Contracts or grants executed by interim Iraqi MiDistlies may be ~ed out in
accordaDcc with applicable Iraqi laws and Ministay procedures
only if the AdnUnistaator or his designee dctcuoiue~ that the Ministry's
application of these coubols will casurc · However, in the event
that a protest is filed against the proposed award of a contract or pant. the
provisions of the Protests clause in Appendix B of this Mcmomadum shall
apply. If the Administrator or his designee does not determine that applicable
Iraqi law8 and Ministry contracting procedures can ensure bansparcncy in the
use of Iraqi funds, the rules of this Metuoraadum shaD apply. ·
3) AB part of the CPA's responsibility to ensure that CPA Funds are used for their
·intended purpose, the CPA Comptroller, in coordination with the Head of
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Coutaacting Activity, CPA, may, in his discretion, review
f . . Iraqi M. . .
o mtcrun ~rusbtes.
actions
Seelloa 11
The Appendices provide supplemental insbuctious ou preparing and executing Contracts
and Chants pwsunt to this Memorandum. The Program Review Board is hereby
authoxizcd to modify cxistinJ Appendices to this Mcoaoranm•m, and issue
Appendices, aa may be required to ensure the effective execution of fuDdiDg for the
benefit of the Iraqi people. Any such modification or issuance shall be deem"" to satisfy
the requirements of CPA Regulation No.3, section 6 (.S).
. Sectioa 12
Protection of Coaftdentlal Acqulsldoa IDformatloa
Contracting officers, or other persons involved in the conttacting process, are specifically
proln'bited from releasing information contained in a propasal to any person not involved
with the · · process. For purposes of this sectiOn, "proposal" means any
proposal, including a technical, management, or cost proposal, submitted by a contractor
in respon•c to the mfUinments of a solicitation for a competitive Any other
disclosure of confidential acquisition iDfouoaticm, including infouuation concetuing a
successful proposal is incorporated by reference into a contract, shall be protected in
a manner CODBiatcafwith S U.S.C. Section 552 and Parts 3 and 24 of1be U. S. Federal
Acquisition Regulation. ·
'This Metnonmdum shall SeeUon 13 .
Entry Into Force
into force on the date of ·
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· mi\et, Admin1strator
Coalition Provisional · Authority
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CONTRACT AND GRANT PROCEDURES
APPLICABLE TO VESTED AND SEIZED IRAQI PROPERTY AND
DEVELOPMENT FUND FOR IRAQ
CoaU.dFUeRequ~emenu
APPENDIX A
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Micro Purchases ($5,000 or less)
Contract file must include:
• Notes or documentation reflecting competition efforts, if any, including a written
. summary of oral solicitations if award is based on an oral solicitation.
• · The basis for the award decision if other than lowest price.
• Material Contract terms (Who is to do What, When, and for How much?)
• lnfozmation demonstrating the outcome (such as receipts, delivery notices, notes ofthe
contracting officer regarding contractor performance for services).
• Micro PurChase files will be maintained for 1 year following final contract payment.
SmaD Purdtases ($5,000.01-$500,000)
•
Contract file must include:
• . Documentation of oral solicitations made for contracts less than $25,000, written
. solicitations for contracts from $25,000.01 to SSOO,OOO. · ·
• Evidence of competition, such as posted notices (including the location and length of
time posted), direCt solicitations, advertisements, posting on web pages.
• For solicitations in which only one source is solicited (i.e., sole-source contract awards),
a written justification prepared in accordance with this Appendix.
• Evaluation Criteria, if applicable.
• Significant correspondence with vendors.
• Notification to successful vendor.
• Written contract containing required terms for agreements exceeding S 10,000 or a
summary of material terms for agu,ements less than S 10,000. ..
• Invoices for progress payments and verification of perfotn}ance including notes or
inspections or monitoring where appropriate. ·
• Small Purchase Files will be maintained for 1 year following final contract payment
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Large Purchases (more than ~00,000)
Doc11mentation will be sufficient to enable review by tbe Contract Award Committee prior to
award and then by auditors during the period of contract performance and thereafter. Files Will
include: ·
• A statement of need for the requirement to be add&cssed. This may be a for
services from the agency requesting the contract.
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August2003
· • • Evidence of Competition, such as posted
time posted), direct solicitations, advertisements,
the location and length of
on web pages, or other means
used to publicize the. oppo1 tunity to bid.
• All fully eligible responses from vendors to allow the Contiact Award Committee to
review the contracting options to ensure the proposed contract award is based upon
sound business judgment. .
• For contracts in which only one source is solicited, a written justification prepared in
accordance with this Appendix.
• Contract awatd Evaluation CritcriL Price must be one of the contract evaluation
criteria. Other criteria may include expe:ticnce, prior contract perfonnancie, technical
expeztisc, and delivery terms.
Memorandum for Record me.tnorializing the action by the Contract Award Committee
acting to select the successful vendor. The MFR. should identify board members. the
bids considered, the criteria used, and the selected vendor.
• Significant couespondence with vendors.
• Notification to successful vendor.
• Written contract containing required tern,s.
• Contract Modifications and Amendments
• Contract perforrnance and outcome infonllation including invoices for progress
payments and verification of pm formance including notes of inspections or monitoring
where appropriate.
• Large Purchase Coub act files will be maintained for a period of 3 years following final
contract payment. ·
Sole-Source Contraetillg Justiftcattoa ud Approval Requiremeats
• Contracting Officers must document compelling reasons justifying sole source
contracting in all contracts. Compelling reasons that may be considered when
justifYing sole-source contracting:
o There is only one responsible source and no other supplies or service will satisfy
requirements. This may include 1macceptable delays in delivery or other unique
circumstances, such as intellectual rights or con:cpatJ"bility with existing
systems.
o Unusual or compelling urgency to satisfy requirements. This justification will
only be used in cases where competition would· represent a serious risk to agency
objectives. Failure to accurately foR)Cast agency needs is a not a sufficient
justification.
• The justification must demonstrate the circumstances for foregoing adequate competition.
If the circumstance is urgent and compelliilg. specifically explain the time constraints.
Identify unique capabilities that arc possessed by only one contractor.
• Justifications will include a description of efforts to obtain competition.
• Justifications will include facts supporting the Officer's deteruaination that a
fair and reasonable price was obtained.
• J~tications for sole-source awards in excess of $500,000 must be approved by the
Contracting Officer's Appointing Authority or the Head of Con~ting Authority, CPA.
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Gr8Dts
Files will contain a statement of the coxnmunity need to be addressed and intended purposes of ·
the grant. Generally, the grant application is sufficient The file will also contain outcome
infotmation including an assessment of the community impact of the grant.
Speclal Requlremeats for Coastradioa Project~
• Maintain engineering drawings and approvals of plans 1•ntil contract pcrfoin1ancc is
complete. :
• Cost Estimates by independent engineers should be obtained for Large Purchase projects ·
to assist in the assessment of fair and reasonable value.
• Fixed-pricecl ammgements are preferred for construction contracts.
• Certificates of Completion.
• Change Orders and Amendments win be fully documented.
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CONTRACf AND GRANT PROCEDURES
APPUCABLE TO VESTED AND 11'. lr. IRAQI PROPERTY AN)
DEVELOPMENT FUND FOR IRAQ
Standard Terms aud Conditions for SoHcitations and Contracts la Excess of 55,000
· APPENDIXB
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SoUcitatioa Ternw and Conditions
1. Submisaioa of Offen. The contractor will submit signed and dated offers to the office
specified in this solicitation at or before the exact time specifi~ in the solicitation. Offms may
be submitted on letterhead stationery or as othet wise specified in the solicitation. At a minimum,
offers must show: ·
a. The solicitation number.
b. The time specified in the solicitation for receipt of offers.
c. The name, address, and telephone number of the offetor.
d. A technical description of the iterus being offered in sufficient detail to evaluate
compliance with the requirements in the solicitation. This may include product literature, or
other documents, if necessary.
~· Te:tnas of any express warranty.
f. Price and any discount teims.
g. . Payment address (if different from mailing address)
h. Acknowledgment of solicitation amendments (if any)
. i. Past performance info1mation, when included as an evaluation factor, 'o include
recent and relevant contracts for the same or similar items and other references (including
contract numbers, points of contact with telephone numbers,. and other relevant infou:nation)
j. A statement specifying the extent ofagtrement with all teuns, conditions, and
provisions included in the solicitation. Offers that fail to furnish required representations or
infounation, or reject the terms and conditions of the solicitation may be excluded from
consideration.
2. Period for Acceptance of Offen. The offeror agrees to hold the prices in its offer firm
for 30 calendar days from the date specified for receipt of offers, unless another time period is
specified in an addendum to the solicitation. ..
3. Product Samples.. When required by the solicitation, produet santples shall be suburltted
at or prior to the time specified for receipt of offers. Unless otherwise specified in this
solicitation, these samples shall be submitted at no expense, and returned at the sender•s request
and expense, unless they are destroyed by preaward testing.
4. Muldple Otten. Otrerors are encouraged to submit multiple offers presenting
alternative terms and conditions or items for satisfying the requirements of this solicitation. ·
Each offer submitted will be evaluated separately.
S. La~ Submissions, ModificatloDs, Revisions, and Withdrawals of Offen.
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a. Offetot s are responsible for submitting offers, and any modifications, revisions,
·or withdrawals. so as to reach the Contracting Officer designated in the solicitation by the time
specified in the solicitation. If no time is specified in the solicitation, the time for receipt is 1630
hours, local time, for the designated contracting office on the date that offers or revisions arc
due.
b. Any offer, modification, revision, or withdrawal of an offer received at the
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contracting office designated in the solicitation after the exact time specified for receipt of offers
is "late" and will not be considered unless it ia received before award is made, the Contracting
Officer detetudnes that accepting the late offer would not unduly delay the acquisition, and
1) if it was transmitted through an electronic coounerce method
by the solicitation, it was received at the initial point of entry to the contracting office not
.later fhan 1700 hours one working day prior to the date specified for receipt of offas. or
2) there is acceptable evidence to establish it wu received at the location
designated for the receipt of offers and was under gov cnt control prior to the time
set for rcoeipt of offers, OT .
3) if the solicitation was a request for proposals, it was the only proposal
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c. However, a late modification of an otherwise successful offer that makes the
offer's tCIIDs more favorable to the contracting organization issuing the solicitation will be
considered at any time it is received and may be accepted.
d. Acceptable evidence to establish the time of receipt at the contracting office
includes the time/date stamp of that installation on the offer wrapper, other documentary.
evidence of receipt maintained by the installation, or oral testimony or statements of contracting
office personnel. ·
e. If an emergency or unanticipated event interrupts normal proccises so that offers .
cannot be received at the contracting office for receipt of offers by the exact time .
specified in the solicitation, and urgent requirements preclude amendment or the solicitation or
other notice of the extension of the closing date, the time specified for n=ceipt of offas will be
dCCincd to be extended to the same time of day specified in the solicitation on the first work day
on which nor01al processes resume.
£ Offers may be withdrawn by written notice received at any time before the exact
time set for receipt of offers. Oral ~dfets in response to oral solicitations may be withdrawn
orally. If the solicitation authorizes facsimile offers, offers may be withdrawn via facsimile
received at any time before the exact time set for receipt of offers, subject to the conditions
specified in the solicitation oonccruing facsimile o:ffets. An offer may be withdrawn in person
by an offeror or its authorized representative i~ before the exact time set for receipt of offers, the
identity of the person requesting withdrawal is established and the penon signs a receipt for the
offer.
6. Contract Award. The Contracting Officer intends to evaluate otfets and award a
contract without discussions with otrerors. Therefore, the offeror's initial offer should contain
the offeror's best terms from ·a price and technical standpoint However, the Contracting Officer
reserves the right to conduct discussions if later dctcnnined by the Contracting Officer to be
necessary. The Contracting Officer may reject any or all offCis if such action is in the public
interest; accept other than the lowest .. priced offer; and waive infonoalities and minor
iuegularities in offers received.
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Adtni.nisgatin~ Using and Accounting for V~Jild Seized _lt!gi Pxopqty Appcndi1 B
August2003
7. Multiple Awards. The Contracting Officer may accept any itcan or group of items of an
offer, unless the offeror qualifies the offer by specific limitations. Unless otherwise provided in
the schedule, offers may not be submitted for quantities less than those spcci.tied. The
Contracting Officer reserves the right to make an award on ~y item for a quantity less than the
quantity ofien:d, at the unit prices offerod, unless the offe~or specifies othc1 wise in the offer.
8. Evaluation.· The Contracting .Officer will award a contract resulting ftom this
solicitation to the responsible offeror whose offer confomung to the solicitation will be most
advantageous to the contracting activity. price and other factors considend. The following
facton shall be used to evaluate offers.
(Contracting Officer lists factors here, in order of importance)
9. Options. The Contracting Offieer will evaluate ofTen for award purposes by adding the
total price for all options to the total price for the basic require1nent. The Contracting Officer
may detamine that an offer is tlll8Cceptable if the option prices are significantly unbalanced.
Evaluation of options shall not obligate the Contracting Officer to exercise the option(s).
10. Notice of Award. A written notice of award or acceptance of an offer, mailed or
otherwise furnished to the successful offeror within the time for accep1ance of the offer, shall
result in a bindjng contract without further action by either party. Before the offer's scheduled
expiration time, the Contracting Officer may accept an offer (or part of an offer) whether or not
there are negotiations after its receipt, unless a written notice of withdrawal is received before
award.
11. . Protests. A contractor wishing to object to the terms of a solicitation, the tennination of
a solicitation, the award of a contract, or the te11oination of the award of a contract, sh•ll present
the matter to the Contracting Officer for an initial decision. · The contractor shall state to the
Contracting Officer the basis for the protest. If the contractor does not agree witb the
Contracting Officer's initial decision, the Contractor may appeal the initial decision to the Head
of Contracting Activity, CPA, for resolution. The decision of the Head of ContractinB Activity,
CPA, shall be the final decision in the matter.
12. Evaluation of Foreign Currency Offen. If the Contracting Officer receives offers in
more tban one currency, the Contracting Officer will evaluate offers by converting the foreign
currency to United States currency using rate in effect on the date specified
for receipt of offets, if award is based on initial offers, or. if award is based on revised offers, on
the date specified for receipt of proposal revisions.
Coatract Terms aad Coaditious
13. · laspecdoDI Aeceptanee. The Contractor shall only tender for acceptance those itcml that
confotm to the requirements of this contract. The Contracting Officer reserves the right to
inspect or test any supplies or services that have been tendered for acceptance. The Contracting
Officer may require repair or replacement of nonconfonuing supplies or reperfotmance of
nonconfonning services at no increase in contract price. The Contracting Officer must cxc:zcisc
the post-acceptance rights:
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August2003
a. Within a reasonable time after the defect was discova:ed or should have been
discovered, and
b. Before any substantial change occurs in the condition of the item, unless the
change is due to the defect iri the item.
14. Assignment. The Contractor shall not assign, transfer, or make any other disposition of
this Contmct, or·anypart thereof, without the prior written of the Contracting Officer.
15. Changes. Changes in the texrns and conditions of this contract may be made only by
written agreCJnent of the parties.
16. Disputes. This contract is not subject to the Contract Disputes Act of 1978, as amended
(41 U.S. Code, Sections 601-613). Failure of the parties to this contract to reach agteeroent on
any request for equitable adjustment, claim, appeal, or action arising under or relating to this
contraCt shaH be a dispute to be resolved in with the United States Federal
Acquisition Regulation Clause 52.233 .. 1, Disputes, which is incorporated herein by reference
except that appeals from final decisions of a Contracting Officer may only be appealed to the
U.S. Armed Services Board of Contract Appeals (ASBCA). The decision of the ASBCA shall
be final. The contractor shall proceed diligently with perfomumce of this contract, pending final
resolution of any dispute arising under the contract.
17. Exeusable Delays. The Contractor shall be liable for default unless nonpcrfOIIDance is
caused by an occurrence beyond the reasonable control of the Contractor and without its fault or
negligence such as, acts of God or the public enemy, acts of the Governmental activity in either
its sovereign or contractual capacity, fires, floods, epidemics, quarantine restliCtions, sb ikes,
unusually·sevcre weather, and delays of common carriers. The Contractor shall notify the
Contracting Officer in writing as soon as it is ~nably possible after the conamenc:ement of
any excusable delay, setting forth the full particulars in connection therewith, shall nmedy such
occunence with all reasonable dispatch, and sball promptly give written notice to the Contracting
Officer of the cessation of such occurrence.
18. Invoice. 1be Contractor shall submit an original invoice and three copies (or electronic
invoice if authorized) to the address designated in the contract to receive invoices. The invoice
must include: ··
a. Name and address of the Contractor.·
b. Invoice date and number.
c. Contract nmnber, contract line item nmnber, and, if applicable, the order number.
d. Description, quantity, unit of measure, unit price, and extended price of the items
delivered.
c. Shipping number and date of shipment, including the bill of lading number and
weight of shipment if shipped on a bill of lading.
f. Tenns of any discoWlt for prompt payment offered.
g. Name, title, and phone number of pc:rson to notify in event of defective notice.
19. Pateat Indemnity. The Conti actor shall indemnify the Govexnmcnt agency involved in
this contract and its officers, employees, and agents against liability, including costst for ~ or
alleged direct or indirect contributory infringement of, or inducement to infringe. any patent,
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trademark, or copyright, arising out of the performance of this contract, provided the Contractor
is reasonably notified of such claims and proceedings.
20. Payment. Payment shall be made for items accepted by the Contracting Officcc that
have been dclivetcd to the delivery destinations set forth in this contract. In connection with any
discount offered for early payment, time sba1l be computed nom the date of the invoice. For the
purpose of computing the discount earned, payment sbaU be considered to have been made on
the date which appears on the payment check or the specified payment date if an electronics fund
transfer payment is made.
21. Risk of Loa. Unless the: contract specifically provides otherwise, risk of loss or damage
to the supplies provided under this contract shall remain with tho Contractor until, and shall pay
to the Contracting Officer upon: ·
L Delivery of the supplies to a carrier, if transportation is £o.b. origin.
b. Delivery of the supplies to the Contracting Officer or a representative at a
destination specified in the contract, if is f.o.b. destination.
22. Tues. The contract price includes all applicable taxes ~d duties.
23. Teranination for Convealeace. The Contracting Officer rcscrvcs the right to teuuiuate
this contract, or any part hereof, for the sole convenience of the Govcuunent activity. In the
event of such tennination, the Contractor shall immediately stop all work hereunder and shall
immediately cause any and all of its supplims and subcontractorS to cease work. Subject to the
tetms of this contract, the Contractor shall be paid a percentage of the contract price reflecting
the percentage of the work perfotmed prior to the notice oftcu nination, plus reasonable charges
the Contractor can demonstrate to the satisfaction of the Contracting Officer using its standard
record keeping system, have resulted from the teunination. . The Contracting Officer, upon
reasonable advanced notice, may inspect the financial records relating to this Contract includjng
the amounts paid to subcontractors and the locations where anypottion of tho Contractor"s
perfounance occurs. The Contracting Officer may review the Contractor's financial statements
upon request.
24. Termlaadoa for Cause. The Contracting Officer may terminate this contract, or any
part hereof, for cause in the event of any default by the Contractor. or if the Contractor fails to
comply with any contract tenns and conditions, or fails to provide the Contracting Officer, upon
request, with adequate assuranCes of future perfor10ance. In the event of t.eturination for cause,
the Govemrnent agency shall not be liable to the Contractor for any amolDlt of supplies or
services not accepted, and the Contractor shall be liable for any and all rights and reutedies
provided by law. If it is deteimined that the Contracting Officer improperly tclminated this
contract for cause., such teunination shall be deemed a tenuination for convenience.
25. Title. Unless specified-elsewhere in this contract, title to ite•ns fwu;shed under this-
contract shall pass to the Govetnment agency upon acceptance, regardless of when or where the
Goveuament agency takes physical possession.
26. Warranty. The Contractor warrants and implies that the items delivered hereunder are
•
merchantable and fit for use for the particular purpose described in this contract.
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27. Immunities. Except as provided in this contract, the Governlhent of Iraq or its agents,
including the CPA or other govenunental agcncica, have not waived any of their or
• • • UDm\DlltiCS.
28. Legal Status. The Contractcn: is an independent contractor. The Contractor's employees
will not be considetcd government employees for any pmpose. The Contractor is solely
responstole for compensation agreements with employees.
29. Contractor's Responsibility for Employees. The ·Contractor is responsible for the
professional and technical competence of its employees and will select reliable individuals who
will perform effectively in the implementation of this Contract, respect the local customs, and
conform to a high standard of moral and ethical conduct. The Contracting Officer may require
that the Contractor remove from the job ci. nployee. s who endanger persons or propct ty, or whose
continued employment under this contract is inconsistent with the interest of military security.
. . 30. . Subcontracting. Except as authorized in this contract, the Contractor may not
subcontract any portion of the perfomtance of this Contract to another without the prior written
consent of the Contracting Officer. The terLiiS of any subcontract will be subject to and conform
with the provisions of this Contract.
31. lndemntnaation. The Contractor shall defend, indemnify, and hold haltn1ess all
. government entities involved in this contract, together with the entities' offic:as, agc:uts, and
employees from and against all suits, claims; or liabilities of any kind arising out of ~;Cts or
omissions of the Contractor, its employees, or the Contractor's subcontractors.
32. Iosar&Dce. The Contractor represents and wmants that it shal] maintain appropriate
insurance includ;ng general commetc:ialliability and worken compensation coverage in an
: adequate amount to cover third parties claUn& arising from or in connection with this Contract.
. Upon request, the Contractor will provide satisfactory evidence of the insurance required under
this article.
33. Use of Names and Symbols. Except as required by this Contract, the Contractor will not
advertise or otherwise makes public the fact that it is a contractor to the goveuunQJtal entity in
this Contract, nor will the Contractor use the name or emblem oftbc govcmmental entity for
commercial purposes.
.
34. L· imitatloa of LiablUty. Except as otherwise provided by an apress warranty. the
Contractor will not be liable to the governmental entity for consequential damages resulting fiom
any defect or deficiencies in accepted items.
35. Ineousisteaey between English Venlon a.ad TranslatioD ofCoatraet. In the event of
inconsistency between any terms of this contract and any transaction into another language, the
English language meaning shall control.
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36. Correspondeuce bi EagHsh. The Contractor shall ensure that all contract
that is addressed to the govezumcntal entity awarding this contract is submitted
in English or with an English translation. · .
3 7. ConOicts of IDterest The Contractor wauants that no governmental official bas
recejved or will be offered by the Contractor any direct or indirect benefit in connection with or
arising fiom the· award of this contraCt. The Contractor that any breach of this Provision
is a breach of an teml of this Contract
38. Order of Prececleaee (except for CoDSb uetloa Coatraeu). Any inconsistencies in this
solicitation·or contract sha]] be resolved by giving precedence in the following older:
a. The schedule of supplies/services.
The Assignments, Disputes, Payments, ID.voice, Other Compliances clauses of
b. this contract.
c. Addenda to this solicitation or contract, including any license agteemcnts for
. computer softw. are.
d. Solicitation provisions (if this is a solicitation)
e. The other standard clauses in this contract.
f. Other documents, exhibits, and attachments.
g. The specification (the namLtive description of the work)
39. Other Compliaaees. The Contractor shall comply with all applicable laws, rules, and
regulations applicable to its perfonnance under this contract.
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40. Soaree of Fuads. The obligation under this contract is made with CPA Funds, as
defined in CPA Memorandum NumberM, , dated Augll!t 19, 2003. No funds, appropriated or
other, of any Coalition country are or will be obligated under this contract
41. Optioa to Extend the Term of the Contract.
a. The govetnmental entity awarding this contract may extend the tetm of this
contract by written notice to the Contractor within · days (insert number of days) prior to
the end of the tetm of the contract, or the end of any option period previously exercised under the
contract; provided that the Govcnuuent entity gives the a preliminarywrittc:n notice
· of its intent to extend at least (insert number of days) before the contract period
(including option periods exercised) expires. The preliminary notice does not eotnmit the
gov ental entity to an extension. If the Gova nment exercises this optio~ the extended
contract sbaJl be considered to include this clause.
b. At the end of the contract period, or at the end of the final option period under this
contract, whichever is later, if the governmental entity requires continued perfmnLBDce of
services within the liunts and at the rates specified in the oontraQt. the governmental entity may
extend the period of performance under this contract for an Bdditional period not to exceed six
· ·· months, by giving written notice to the Contractor at least days before the end of the
contract period or the end oflbe final option period exercised, whichever is later.
42. Liquidated Damages.
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a. If the Contractor fails to p<aform within the time specified in this contract, the
Contractor shall, in place of actual damages. pay to the goveunuental entity liquidated damages
of S per calendar day of delay .
. b.. If the govetmaental entity 1euninatcs this contlact in whole or in part under the
Tcumnation for Cause clause, the Contractor is liable for liquidated damages accruing tmtil the
governmental entity ~onably obtains similar delivery or perfonnauce. These liquidated
damages are in addition to excess costs of repurchase under the Termination for Cause c]alJ&e.
c. The Contractor will not be charged with liquidated damages when the delay in
delivery or pcrfonnance is beyond the control and without the fault or negligence of the
Contractor as defined in the Excusable Delay clause.
•
43. Performance of Work by the Contractor. The Contractor shaU perform on the site,
and with its own organization, work equivalent to at least percent of the total amount
of work to be perfo&med under the contract. This percentage may be reduced by a supplemental
agxccment to this contract if, du1 ing perfonning the wodc, th~ Contractor requests a reduction
and the Contracting Officer dete.t mines that the reduction would be to the advantage of the
Govenament. .
44. . DlfJerlng Site Coaditioaa,
. a. The Contractor shall promptly, and before the conditions are disturbed, give a
written notice to the Contracting Officer of: .
( 1) Subsurface or latent physical conditions at the site which differ materially
&om those indicated in the Contract, or
(2) Unknown physical conditions at the site, of an unusual nahrre, which
differ materially from those ordinarily encountered and generally recognized as inhering in work
of the character provided for in the contract
b. The Contracting Officer shall investigate the site conditions promptly after
~iving the notice. If the conditions do materially so differ and cause an increase or dectcasc
in the Contractor's cost of, or the time required for. performing any part of the work under this
contract. whether. or not changed as a result of the conditions, an equitable adjustment shall be
made under this · clause and the contract modified in writing accordingly.
c. No request by the Contractor for an equitable adjustment to the comract shalt be
allowed, unless the Contractor has given the written notice required; provided, that the time
prescribed in paragraph (a) of this clause for giving written notice may be extended by the
Contracting. Officer.
d. No request by the Contractor for an equitable adjustment to the contract for
differing site conditions shall be allowed if made after final payment under this contract
45. Stte·mvestlcadoa aud Conditions Afl'ectlag tbe Work.
a. The Contractor acknowledges that it has taken steps reasonably necessary to
ascertain the nature and location of the work, and that it has investigated and satisfied itself as to
the general and local conditions which can affect the wodc · or its cost, including but not limited to
(1) conditions bearing upon transportation, disposal, handling. and storage of materials; (2) the
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availability of labor, water, electric power, and roads; (3) uncertainties of weather. river stages,
tides, or similar physical conditions at the site; (4) the confo1mation and conditions of the
ground; (S) the character of equipment and facilities needed preliDUnary to and during work
performance. The Contractor also acknowledges that it bas satisfied itself as to the character,
quality, and quantity of surface and subsurface materials or obstacles to be encountered insofar
as the information is·rcasonably ascertainable from an inspection of the site, includiug all
exploratory worlc done by the governmental agency involved, as well as from the drawing and
specifications made a part of this contract. Any failure of the Contractor to take the action
described and acknowJedged in this paragraph will not relieve the Contractor fi:om responstbility
for estimating properly the difficulty and cost of successfully perfomting the work, or for
proceeding to successfully perform the work without additional expense to the goveznmental
agency involved. ·
b. The goveuunental agency involved in this contract assumes no responsibility for
any conclusions or interpretations made by the Contractor based on the informatiOll made
available by the Government, nor does the governmental agency assume responsibility for any
understanding reached or made concerning conditions which can affect the work
by any of its officers or agents before the execution of this contract, unless that undetstsmding or
representation is expressly stated in this contract.
46. Material and Workmanship.
. a. All equipment, material, and articles incorporated into the work covered by this
contract shall be new and of the most suitable grade for the purpose intended, unless otbelwise
specifically provided in this contract. References in the specifications to equipment, material,
articles, or patented processes by trade name, make, or catalog number, shall be regarded as
eS1ablisbjng a standard of quality and shall not be construed as limited competition. The
Contractor may, at its option, use any equipment, material, article, or process that, in the
judgment of the Contracting Officer, is equal to that named in the specifications, unless
otherwise specifically provided in this contract.
b. The Contractor shall obtain the Contracting omcer•s approval of the machinery
and mechanical and other equipment to be incorporated into the work. When requesting
approval, the Contractor shall furnish to the Contracting Officer the name of the manufacturer,
the model number, and other infonnation concerning the pcrfounance, capacity, nature, and
rating of the machinery and mechanical and other equipment. When required by this contract or
by the Contracting Officer, the Contractor shall also obtain the Contracting Officer's approval of
the matciial . or articles which the Contractor contemplates incorporating into the work. When
requesting approval, the Contractor shall provide full inf01numon concCining the material or
articles. When directed to do so, the Contractor shall submit samples for approval at the
Contractor's expense, with all shipping charges prepaid.. Machinery, equipment, material, aud
articles that do not have the required approval shall be installed or used at the risk of subsequent
rejection.
c. All work Wlder this contract shall be performed in a skillful and workman1ike
manner. The Contracting Officer may require, in writing, that the Con1ractor remove from the ..
work any employee the Contracting Officer deems incompetent, careless, or otherwise
objectionable.
47. SuperiDteudence by tbe Contraetor. At all times during pCiformance of this OOJ:ltr&ct
and 1Dltil the work is completed and accepted, the COirtractor shall directly superintend the work
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or assign and have on the worksitc a competent superintendent who is satisfactoty to the .
Contracting Officer and has authority to act for the Contractor .
48. Peranits and Respoasibilides. The Contractor shall, without additional expense to the
gov ental entity awarding this contract, be for obtaining any necessary licenses
and permits, and for complying with any laws, codes, or regulations applicable to the
performance of the work. The Contractor shall also be responsible for all damages to persons or
property that occurs as a result of the Contractor's fault or negligence. The ContractOr shall also
be responsible for all materials delivered and work performed until completion and acceptance of
the entire wo~ except for any completed m»t of work which may have been accepted under the
contract.
49, Protection ofE:rlsUne Vegetation, Structures, Utilities, ud
Improvemeats.
a. . The Contractor shall preserve and protect all structures, equipment, ·aDd
vegetation (such as trees, shrubs, and grasa) on or adjacent to the wotk site, which are not to be
removed md which do not unreasonably interfete with the· work: required under this contract.
The Contractor shall only remove trees when specifically authorized to do so, and shall avoid
damaging vegetation that will remain in place. If any limbs or branches of trees are broken
during contract petformance, or by the careless operation of equipment, or by workmen. the
Contractor shall trim those limbs or branches with a clean cut and take such other action as the
Contracting officer may direct.
b. The Contractor shall protect from damage all existing irnprovements and utilities
(1) at or near the work site, and (2) on adjacent property of a third party, the locatio~ ofwhieh
are made known to or should be known by the . The Contractor sbaJJ repair any
damage to those facilities, including those that are the property of a third party, resulting fiom
failure to comply with the requirements of this contract or failure to exercise reasonable care in
performing the work. If the Contractor fails or refuses to repair the damage promptly. the
Contracting Officer may have the necessary work performed and charge the cost to the
Contractor. ·
50. Operations ud Storage Areas.
a. The Contractor shall confine all operations (including storage of materials) to
areas authorized or approved by the Contracting Officer. The Contractor shall hold and save the
government entity awarding this contract, its officers and agents, fice and humless fiom liability .
of any natW'e occasioned by the Contractor's perfouoance. . .
b. Temporary buildings (such as storage sheds, shops, offices) and utilities may be
erected by the Contractor only with the approval of the Contracting Officer and shall be built
with labor and materials fmnisbcd by the Contractor without expense to the governmental mtity
awarding this contract. The temporary buildings and utiUties shall reruain the property of the
Contractor and shall be removed by the Contractor at its expense upon completion of the wozk.
With the written con&en.t of the Contracting Officer, the buildings and utilities maybe abandoned
and need not be removed.
c. The Contractor shall, under rules established by the Contracting Officer, use only
established roadways, or use roadways by the Con1ractor when and as
authorized by the Contracting Officer. When materials are transported in prosecuting the work,
vehicles shal] not be loaded beyond the loading capacity recommended by the manufacturer of
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the vehicle or prescribed by law or regulation. When it ia necessary to cross curbs and
sidewalks, the Contractor shall protect them from damage. The Contractor shaJl repair·or pay for
the repair of any damaged curbs, sidewalks, or roads.
S 1. CleaaiDg Up. The Contractor shalJ at all times keep the work area, including storage
areas, free ftom accumulations of waste materials. ·Before completing the work, the Contractor
shall remove from the work and premises any rubbish, tools, scaffolding. equipment. and
materials that arc not the prope:tty of the Govetnment. Upon completing the work, the
Contractor shall leave the work area in a clean. neat, and orderly condition satisfactory to the
Contracting Officer.
52. Accident Prevendon.
a. which will:
The Contractor shall provide and maintain work environments and procedures
(1) Safeguard the public and goveuanental entity personnel, property, .
materials, supplies, and equipment exposed to Contractor operations and activities,
(2) Avoid interruptions of goveriamental entity opei-ations and delays in
project completion dates, and
(3) Control costs in the performance of this contract.
b. For these purposes on contracts for construction or dismant1ing, dclnolition, or
· removal of improvements, the Contractor sbaJJ:
( 1) Provide appropriate safety barricades, signs, and signal lights.
(2) Ensure that any additional mcasmes the Contracting Officer determines to
. be reasonably necessary for the purposes are taken.
c. Whenever the Contracting Officer becomes aware of any noncompliance with
these requirements or any condition which poses a serious or imminent danger to the health and
. safety of the public or govenunental entity personnel, the Contracting Officer shall notify the
Contractor orally, with written confirmation, and request immediate initiation of corrective
action. This notice, when delivered to the Contractor or the Contractor's repre9eDtative at the
.work site, shall be deemed sufficient notice of the noncompliance and that couective action is
required After receiving the notice, the Contractor shall immediately take conoctive action. If
the Contractor fails or refuses to promptly take conective action. the Contracting Officer may
issue an order stopping all or part of the work until satisfactory conective action bas been taken.
The Contractor shall not be entitled to any equitable adjustment of the contract price or extension
of the pcrfounance schedule on any stop work order issued under this clause.
d. The Contractor shall insert this clause, including this paragt aph (d), with
appropriate changes in the designation of the parties, in subcontracts.
53. Sehedules for Construction Coatraeta.
a. The Contractor shall, within five days after the work oommences on the contract
or another period of time determined by the Contracting Officer, prepare and submit to the
Contracting Officer for approval three copies of a practicable schedule showing the order iD
which the Contractor contemplates starting and completing 1he several salient features of the
work (including acquiring materials and equipment). The schedule shall be in the fo1m of a
pro chart of suitable scale to indicate approximately the pa:centage of work scheduled for
completion by any given date during the period. If the Contractor fails to submit a achedU:le
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within the time prescribe~ the Contracting Officer may withhold approval of progJ· ess payments
until the Contractor submits the required schedule.
b. The Contractor shall report progress under the schedule to the Cotitracting Officer
as directed by the Cont:racting Officer. If, in the opinion of the Contracting Officer, the
Contractor falls behind the approved schedule, the Contractor shall take steps necessary to
improve its progxess, including those that may be required by the Contracting Officer, without
additional cost to the governmental entity awarding this contract. In this c· e, the
Contracting Officer may require the Contractor to increase the number of shifts, overtime
operations, days of work, and other efforts, and to submit for approval any supplementary
schedule or schedules as the Contracting Officer dwns necessary.to demonstrate how the
approved_ rate of progress will be regained.
c. Failure of the Contractor to comply with the requirements of the Contracting
Officer under this clause shall be grounds for a detaminati.on by the Contracting Officer that the
Contractor is not prosecuting the work with sufficient diligence to ensure complctiC)n within the
time specified in the contract. Upon making this delamination, the Contracting Officer may
tel minate the Contractor's right to proceed with the work, or any separable part of it, in
acc:ontance with the default tams of the contract.
54. Specifications and Drawings for ConstruetioL The Contractor shall keep on the work
site a copy of the drawings and specifications {the written description of the work) and shall at
all times give the Contracting Officer access thereto. Anything mentioned in the specifications
and not in the drawings, or shown on the drawings and not mentioned in the specifications, shall
be of like effect as if shown or mentioned in both. In case of difference betwun drawings and
specifications, the specifications shall govetn. If case of difference in the figures between the
drawings or in the specifications, the matter shaD be promptly submitted to the Contracting
Officer, who shall promptly make a deteimination in writing. Any adjustment by the Contractor
without such a · 'on shall be at its own risk and expense. The Contracting Officer shall
furnish from time to time such detailed drawings and other information as consideied necessary,
unless otherwise provided.
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CONTRACT AND GRANT PROCEDURES
APPLICABLE TO VESTED AND SEIZED IRAQI PROPERTY AND
DEVELOPME~ FUND FOR. IRAQ
Guidance for &suing Gruts
APPENDIXC
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Considerations for Drafting Grot Agreemeatl or Solicitations for Grant Proposals.
• Identify the Qbieqivcs of the st!!!t !Pd. need for assistas. Pinpoint any relevant
physical, economic, social, financial, institutional, or other problems to be
addressed by the grant.
• Comtider the anticipated results or benefits ex~. Identify costs and benefits to
be derived. For example, show how problem will be ianproved as a of the
grant. Explain how the project will benefit the public.
~~ · List the activities in chronological order to
show the schedule of ilccomplishments md expected completion dates. Identify
the Jdnds of data to be collected and maintained, and discuss the criteria to be
used to evaluate the results and success of the project. Explain the methodology
that will be used to deter mine if the needs identified and discussed are being met
and if the results and benefits identified are being achieved. List each
organization, cooperatort consu]tan~ or other key individuals who will work on
the project along with a short description of the nature of their effort or
contribution.
• ! Establish criteria for judging the
effectiveness and value of the grant. For larger grants, progxess payments or other
control measures should be included to ensure the grant is used effectively.
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ExeeutiDg Grants .
• Grants may be made to government entities or other organizations for purposes
benefiting the public good. Small reconstruction and public works projects, as
well as projects that positively impact education and health care, may be
appropriate for grants.
• Grant agtecments will be recorded on forms prescrib~ by the Head of -
Contracting Activity, CPA, in consultation with the Office of the General
Counsel, CPA.
When executing grants ensure the grantee undea•1ands the purpose of the grant
and the need to exercise fiscal responsibility including obtaining receipts for
significant payments and for documenting the usc of funds.
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• Conduct periodic inspections of tbe grant activity to ensure the grant is being used
appropriately.
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CONTRAcr AND GRANT PROCEDURES
APPLICABLE TO VESTED AND SEIZED IRAQI PROPERTY AND
DEVELOPMENT FUND FOR IRAQ
Frequeut1y Asked QuestloDI
•
APPENDIXD
What projects are appropriate for the expeaditure ofDFI Fundi?
UN Security Couuen Resolution 1483 (2003) provides tbe foUowlllg:
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14. Underlines that the [Jevelopment Fund for Iraq shall be rued ~n a transparent manner to
meet the humanitarian needs of the Iraqi people, for the economic reconstruction and repair of
Iraq 's infrastructure, for the continued disarmament of Iraq, and for the costs of Iraqi civilian
administration. mu:l for other purposes benejiting.the people of Iro.q;
This is the standard for use ofDFI funds. If the contncting requirement does not fit squarely
.. within these categories, other funding sources must be used. Requirements for the support of
Coalition Forces may not be satisfied with DFI funds.
•
What special rales apply for contracts witb IraqJ Faacb?
.
Obligations under contracts with Iraqi Funds will be satisfied only with haqi Funds. A special
clause is included in the contract to put all parties on notice of this important issue.
Military Units: Military units should not execute contracts in their names or in the name of their
govenlillent for projects using Iraqi Funds. These conttacts must contain the following language:
''This contract/grant is entered into under the authority of the Adndnistrator as
head of the Coalition Provisional Authority (CPA), which is temporarily
exercising govenuncn~ authority in Iraq pursuant to the law and usages of war
and relevant United Nations Security Council Resolutions, including Resolution·
1483 (2003) ("Coalition") and by ("Contractor")
Coalition Provisional Authority: In order to clearly state the authority Upon wbich the contract is
being entered into, the clause set forth above must be included in each contract.
The CPA's authority is of limited duration and will terminate upon the establishment of an
intenl8tionally recognized, representative govcnwent of Iraq. Therefore, it is important to
ensure there is a "termination for convenience" clause in each 'COiltract •
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Ministries of the Iraqi Government: Ministries of the Iraqi government should use Iraqi
government contracting procedures when using CPA Funds. if the Admitristtator determines that
the contracting procedures are adequate. If those procedures are inadequate, these procedures
will be used.
When should I use a graut and whea should lue a coDb•et?
When the prinaary purpose is to support or stimulate the efforts of the recipient rather than to
acquire a product or service, grants may be made to community agencies in support of
community development or outreach programs. Grants have more limited ovetsight and are
intended to allow the applicant greater flexibility. While the of the grant should be
assessed, the requirement need not be filled by another source if the intended aims arc not
achieved. Grants are generally awarded to government entities and non-profit organizations.
Contracts are used to acquire goods or services.
What facton should be used when evaluating poteatlal contracton?
The requirements for each contract should be tailored to the acquisition. However all decisions
to award contracts should involve collSideration of the following factors:
• Value. While price is very important in detcnnining a contract award, it ensuring the
perfoxmance of the contract in responsible manner is also important. ·
• Financial Stability of Contractor. The financial stability of the contractor must be
evaluated in all I .arge Purchase contracts or contracts involving a substantial percentage
payment of the full contract award in advance. This review should include an analysis of
its financial statements; audits where possible; credit reports; and other data assessing the
fitness of the company.
• Past Performance. Past performance should be considered if the entity has pafotmcd
• •
prcvtous semces~ .
~ ··
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•
· IRAQI ASSETS USED IN RECONSTRUCTION As of: September 30,2003
. (Dollars in Millions)
DEVELOI;'MENT FUND FOR IRAQ CDFI)
Non-contract and · other items (Allocated)
Wheat purchase
Labor intensive program
De La Rue Currency
Emergency fuel import
Oil Project
•
CPA contract list (Allocated) (Tab C-1)
Total DFI Allocated
DFI Balance
IRAQI SEIZED ASSETS
Non-contract and other items (Allo-cated)
Stipend pay
. Commander's Emergency Response Fund
Regional Director's Emergency Response Fund
Benzene and Liquid Propane Gas
Weapons Buyback
Other (Ministry Operations, Misc.)
CPA contract list (Allocated) (Tab C-2)
Total Seized Allocated
Seized balance
125.4
1, .0
77.2
245.0
300.0
30.0
134.0
7.5
90.0
, .5
289.0
2,498.0 •
758.6
359.0
1,117.6
1,380.4
910.2
552.0
•
205.2
757.2
153.0
1,724.1
1,602.4
IRAQI VESTED ASSETS
. Non-contract and other Items (Allocated)
Emergency payments
Regular payments Iraqi civil service others
Pensioners/Others
Hospital generators
Mobile Radios
Fire station refurbishment
Benzene
Iraqi job corps
Budget for governing council .
Other (Repair/Recon/Humanitarian Assistance, Misc.)
CPA contract list (Allocated) (Tab D)
Total Vested Allocated
Vested balance
- ·
. ~
79.9
1,009.8
99.6
9.0
16.2
2.2
180.0
51.3
4.2
1502
121.7
1,724.1
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