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A good overview by a business law firm. They don't leave you guessing about their motives. United States: Business Opportunities in Post War Iraq 27 October 2003 By Michael R. Charness, Charmaine A. Howson, and Frank A. Verrastro* http://www.mondaq.com/i_article.asp_Q_articleid_E_23089 Contracting with the U.S. government is one of the best vehicles both large and small companies can use to expand their business in overseas markets. While affording great opportunities, however, such undertakings also present a number of challenges. Companies must be mindful of compliance with U.S. export control laws, the Foreign Corrupt Practices Act, and anti-boycott laws, as well as rules unique to government contracting, such as compliance with cost accounting standards, bid protests, and terminations for convenience. This article focuses on recent events in Iraq, which provide an illustration of the opportunities and obstacles companies can expect to face when transacting business overseas. For the past 13 years, since Iraq's invasion of Kuwait in August 1990, and with few notable exceptions, businesses around the world have been precluded from conducting transactions with or in Iraq. The lifting of sanctions earlier this year - a development widely applauded by the business community - remove certain investment obstacles, but substantial challenges nonetheless remain. William Reinsch, president of the National Foreign Trade Council in Washington, has aptly noted that ".the idea of simply going to Iraq to do business is a dream whose reality is off in the distant future." In the immediate aftermath of the successful military campaign to oust Saddam Hussein from power, security concerns and the lack of sustainable electric power are proving to be formidable obstacles to getting the country on track. Iraq's infrastructure is in need of repair, workers need to be paid, potable water remains a luxury item, and the "transition" to turning the country back to the Iraqi people, a prerequisite for establishing transactional rules going forward, is still in the early planning stages. United Nations Security Council Resolution 1483, passed on May 22, 2003, recognizes the United States and the United Kingdom as "occupying powers" - known as the Coalition Provisional Authority (CPA or the Authority) - with specific authorities, responsibilities, and obligations under international law. The resolution also provides in pertinent part: [W]ith the exception of prohibitions relating to the sale or supply to Iraq of arms and related materiel other than those arms and related materiel required by the Authority to serve the purposes of this and other related resolutions, all prohibitions related to trade with Iraq and the provision of financial or economic resources to Iraq established by resolution 661 (1990) and subsequent relevant resolutions. shall no longer apply. The United States also lifted the sanctions that it imposed concurrently with the United Nation's sanctions. On May 23, 2003, the Treasury Department 's Office of Foreign Assets Control (OFAC) issued a general license authorizing U.S. persons to engage in commercial activities in Iraq, including investment in that country and the provision of goods and services. OFAC was authorized to promulgate rules and regulations and administer the sanctions imposed against Iraq by Executive Orders 12722 (August 3, 1990) and 12724 (August 13, 1990). The issuance of this general license effectively ends sanctions against Iraq. Resolution 1483 also reaffirms the sovereignty and territorial integrity of Iraq, meaning commercial laws existing prior to the war should remain in effect. Absent adoption of a new constitution and the attendant regulatory changes, existing Iraqi laws prohibit foreign ownership of specific assets, capital-sharing arrangements between Iraqi and foreign companies, and foreign agents from playing a role. Yet, with the goal of forming a new Iraqi government run by Iraqi citizens, the Authority nonetheless controls the country, its laws and their enforcement, and the humanitarian and reconstruction efforts currently being undertaken. Amid this turmoil and uncertainty, the evolving legal structure and the prevailing "make decisions as you go" operations within the CPA, progress is being made. Because the United States is taking the lead not only as an occupying power, but as the largest contributor of reconstruction funding, substantial opportunities to do business in Iraq reside through contracts with the U.S. government. U.S. Government Contracts The reconstruction and humanitarian aid efforts in Iraq are being administered by the U.S. Agency for International Development (USAID) through grants and contracts. USAID chose to limit competition for the first eight reconstruction contracts awarded. This was done so that the agency could be ready to provide rapid response to any necessary assistance and services required in the event of war, without complicating diplomatic efforts to prevent war that were being undertaken during the procurement process. While this process may have initially excluded qualified companies eager to do business in Iraq, the reality is that these large contracts still provide significant subcontracting opportunities for companies wishing to become involved in the reconstruction effort. The eight contracts awarded are as follows: International Resources Group (IRG) of Washington, D.C. was awarded a personnel support contract, initially funded at $7.1 million, to provide technical expertise for reconstruction. Stevedoring Services of America (SSA) of Seattle, Washington was awarded a seaport administration contract, initially funded at $4.8 million, to provide an initial assessment of the Umm Qasr port to facilitate delivery of humanitarian aid and other reconstruction materials and for other port operation services such as cargo handling and coordination of onward transport of shipments from the seaport. Creative Associates International, Inc. of Washington, D.C. was awarded a primary and secondary education contract, initially funded at $1 million for up to $62.6 million over 12 months, to increase enrollment and improve the quality of primary and secondary education. The contract is to ensure that classrooms have sufficient material by the start of the new school year and to facilitate community involvement and other social mobilization to retain students. Research Triangle Institute of North Carolina was awarded a local governance contract, initially funded at $7.9 million for up to $167.9 million over 12 months, to strengthen the management skills and capacity of local administrations and civic institutions to improve the provision of essential municipal services such as water, health, public sanitation, and economic governance. Bechtel of San Francisco was awarded a capital construction contract, initially funded at $34.6 million for up to $680 million over 18 months, to provide emergency repair and rehabilitation to power generation facilities, electrical grids, municipal water and sewage systems, airport facilities; the dredging, repair, and upgrading of the Umm Qasr seaport; and reconstruction of schools, ministry buildings, irrigation structures and transportation links. An inter-agency agreement awarded work for theater logistical support to the Air Force Contract Augmentation Program, initially funded at $4 million for up to $26 million over 12 months, to support and supplement existing U.S. Air Force contracts. Logistical support services to be provided to USAID and its contractors engaged in the reconstruction effort include warehousing, customs clearance, trucking, and providing bottled water. Skylink Air and Logistic Support (USA) Inc. was awarded an airport administration contract to provide assessments for civilian airports and collaboration for their repair, as well as management of civilian airports to expedite receipt and processing of humanitarian assistance, reconstruction materials, and personnel. Abt Associates, Inc. of Cambridge, Massachusetts was awarded a public health contract, initially funded at $10 million for up to $43.8 million over 12 months, to support a reformed Iraqi Ministry of Health at the national, regional, and local levels and to provide health services; medical equipment and supplies; health education information; to train and recruit health staff; and to determine the specific needs of the health sector and vulnerable populations such as women and children. USAID has also awarded grants to international relief organizations, the United Nations Children's Fund, and the World Health Organization for four programs: (1) Community Action Program, (2) Back to School Campaign ($1 million for one year initially, up to $7 million), (3) Health, Water and Sanitation Services ($8 million for one year initially, up to $40 million), and (4) Health System Strengthening ($10 million for one year). As of the date this column was written, USAID has three outstanding requests for proposal/application (RFPs or RFAs). Under the first RFP for economic recovery, reform, and sustained growth in Iraq, competition has been limited to 10 firms. The second RFP is for agriculture reconstruction and development for Iraq and calls for oversight, identification, and implementation of performance-based program activities to expand agricultural productivity and restore the capacity of Iraqi agro-enterprises. The third RFA is for higher education and development and calls for the establishment of partnerships between U.S. and Iraqi colleges and universities to invigorate and modernize Iraqi institutions of higher education. Oil Field Contracts >From the outset of pre-war planning, the Defense Department reserved the right to oversee and control activity related to the Iraqi oil sector. As a consequence, the U.S. Army Corps of Engineers assumed responsibility for awarding the initial contract covering well control and other refurbishment, maintenance, and operations activities designed to restore and enhance oil production in Iraq. In March, Halliburton subsidiary Kellogg Brown & Root (KBR) was awarded a two-year contract to extinguish oil well fires and provide other oil field services with an estimated contract ceiling of $7 billion. Concerns among some that the range of services that could be ordered under the contract was not limited to urgent post-conflict requirements, as well as unproven allegations of favoritism toward the company due to Vice President Cheney's former position as Halliburton's chief executive officer, resulted in Congressional action on this matter. During its consideration of the FY 2004 Defense Authorization Act, the Senate overwhelmingly adopted a Sense of the Senate provision requiring that the post-conflict portions of the KBR contract be competed in compliance with the Competition in Contracting Act. The resolution also requires the Department of Defense to submit a report to Congress detailing justification for the sole source award to KBR if the contract is not opened to competition by August 31, 2003. In an apparent response to that resolution, the Army has issued a pre-solicitation notice seeking a full range of oil field services, with a proposal due date of August 14, 2003. The notice states that the preferred contracting strategy is to award two contracts, to two different contractors, with statements of work unique to the Iraqi government-owned North Oil Company and South Oil Company. Companies from all Coalition countries are eligible for award. The services to be provided will include extinguishing oil fires; environmental assessments; environmental clean-up at oil sites; assessing all elements of the infrastructure; engineering design and construction to restore the infrastructure to safe operating conditions; oil field maintenance, including technical assistance in the performance of reservoir management, production engineering, in-field drilling, facilities engineering, and maintenance; pipeline maintenance; maintenance of refineries; and even technical assistance and consulting services to the Iraqi North and South Oil Companies. The proposed contracts will range from a minimum of $500,000 to a maximum of $500 million. Privatization The Authority's transition to power pursuant to Resolution 1483, while working towards the formation and installation of a new Iraqi government, is an evolving process subject to frequent change, in part reflecting prevailing "facts on the ground." The Office of Reconstruction and Humanitarian Assistance, formed within the Department of Defense concurrent with the military effort in Iraq, is now in the process of giving way to a new entity designed to support the efforts of the CPA in Baghdad. With predictions that the CPA will likely be involved in Iraq for the next three to five years, decision-makers are now focusing on the formation and role of an interim Iraqi administration and the timing, pace, and structure of privatization efforts to help accelerate capital investment and economic growth. The CPA has appointed a Governing Council composed of 25 Iraqi leaders to serve as the Iraqi people's official representatives to the CPA. While the exact role and scope of responsibilities of that council remain unclear, the appointment nonetheless represents the beginnings of the process to create a functioning Iraqi government. In addition, with the creation of the Governing Council, we also can expect to see the beginning stages of a phased and measured effort to promote privatization of selected state owned enterprises (SOEs), according to Tim Carney, a former senior advisor to the Iraqi Ministry of Industry and Minerals. In public pronouncements, the CPA has repeatedly said it intends for Iraqis to play a major role in the privatization of their economy. According to Carney, the privatization process must be a result of genuine consultation with Iraqis and be "totally transparent." According to Ramiro Lopez de Silva, the United Nations humanitarian coordinator for Iraq, only short- and medium-term initiatives will be used to revive the economy, suggesting that the CPA will leave significant long-term decisions, such as whether the oil industry should be privatized, to an elected Iraqi government. Although no specific details on privatization have been released, CPA officials have offered a tentative description of how they would like to see Iraq transformed into a free market economy. The entire process is currently slated for completion within the next three years. To accomplish this goal, the CPA plans to place SOEs into one of three categories - fast-track, medium-track, and long-track. SOEs that are debt-free and capable of competing with other firms in the region will be classified as fast-track SOEs. Debt-ridden and inefficient state-owned firms will be classified as long-track SOEs. Fast-track SOEs will be sold to Iraqi and foreign investors during the next year. Long- and medium-track SOEs will likely be dissolved, merged, or sold to investors. Conclusion Business opportunities in post-war Iraq are likely to be limited to government contract and joint venture efforts, at least for the near term until a clear process emerges with an identifiable Iraqi entity authorized to enter into longer term arrangements on behalf of the Iraqi people. As the CPA looks to other international partners to help with the reconstruction costs and effort, the role of the UN may also increase. For the immediate future, companies wishing to transact business in Iraq should monitor U.S. government websites and contact USAID contractors and grantees directly for information on subcontracting opportunities. As events continue to unfold, additional opportunities for U.S. government contracts may also be offered. Positive business relationships formed through the performance of these government contracts and subcontracts, however, can lead to long-term commercial connections As is the case not only in Iraq, but worldwide, contracting with the U.S. government is a particularly useful gateway to transacting business overseas. ************** *Michael R. Charness is a Partner and Co-Chair of the Government and International Procurement Group in the Washington, D.C. office of Vinson & Elkins L.L.P. Charmaine A. Howson is an Associate in the Government and International Procurement Group at Vinson & Elkins L.L.P. .Frank A. Verrastro is formerly a Senior Policy Advisor at Vinson & Elkins L.L.P. and current Director of the Energy Program at CSIS. Contributions to this article were made by Will Alexander, a Summer Associate at Vinson & Elkins L.L.P. and law student at the University of Texas. This material is not intended to create, and does not create, an attorney-client relationship between you and Vinson & Elkins L.L.P., and you should not act or rely on any of this information. As legal advice must be tailored to the specific circumstances of each case, nothing provided herein should be used as a substitute for advice of competent counsel. These materials do not constitute legal advice, do not necessarily reflect the opinions of Vinson & Elkins L.L.P. or any of its attorneys or clients, and are not guaranteed to be correct, complete, or up-to-date. Vinson & Elkins L.L.P. assumes no liability for the use or interpretation of information contained herein. This publication is provided "AS IS" WITHOUT WARRANTY OF ANY KIND, EITHER EXPRESSED OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, OR NON-INFRINGEMENT. Unless otherwise indicated, V&E attorneys listed are: not Certified by the Texas Board of Legal Specialization. None of the attorneys listed on this website is certified as an "expert" or "specialist" pursuant to any authority governing the practice of law in New York. Vinson & Elkins is a registered limited liability partnership. Principal office-Houston. United States: Business Opportunities in Post War Iraq 27 October 2003 By Michael R. Charness, Charmaine A. Howson, and Frank A. Verrastro* Contracting with the U.S. government is one of the best vehicles both large and small companies can use to expand their business in overseas markets. While affording great opportunities, however, such undertakings also present a number of challenges. Companies must be mindful of compliance with U.S. export control laws, the Foreign Corrupt Practices Act, and anti-boycott laws, as well as rules unique to government contracting, such as compliance with cost accounting standards, bid protests, and terminations for convenience. This article focuses on recent events in Iraq, which provide an illustration of the opportunities and obstacles companies can expect to face when transacting business overseas. For the past 13 years, since Iraq's invasion of Kuwait in August 1990, and with few notable exceptions, businesses around the world have been precluded from conducting transactions with or in Iraq. The lifting of sanctions earlier this year - a development widely applauded by the business community - remove certain investment obstacles, but substantial challenges nonetheless remain. William Reinsch, president of the National Foreign Trade Council in Washington, has aptly noted that ".the idea of simply going to Iraq to do business is a dream whose reality is off in the distant future." In the immediate aftermath of the successful military campaign to oust Saddam Hussein from power, security concerns and the lack of sustainable electric power are proving to be formidable obstacles to getting the country on track. Iraq's infrastructure is in need of repair, workers need to be paid, potable water remains a luxury item, and the "transition" to turning the country back to the Iraqi people, a prerequisite for establishing transactional rules going forward, is still in the early planning stages. United Nations Security Council Resolution 1483, passed on May 22, 2003, recognizes the United States and the United Kingdom as "occupying powers" - known as the Coalition Provisional Authority (CPA or the Authority) - with specific authorities, responsibilities, and obligations under international law. The resolution also provides in pertinent part: [W]ith the exception of prohibitions relating to the sale or supply to Iraq of arms and related materiel other than those arms and related materiel required by the Authority to serve the purposes of this and other related resolutions, all prohibitions related to trade with Iraq and the provision of financial or economic resources to Iraq established by resolution 661 (1990) and subsequent relevant resolutions. shall no longer apply. The United States also lifted the sanctions that it imposed concurrently with the United Nation's sanctions. On May 23, 2003, the Treasury Department 's Office of Foreign Assets Control (OFAC) issued a general license authorizing U.S. persons to engage in commercial activities in Iraq, including investment in that country and the provision of goods and services. OFAC was authorized to promulgate rules and regulations and administer the sanctions imposed against Iraq by Executive Orders 12722 (August 3, 1990) and 12724 (August 13, 1990). The issuance of this general license effectively ends sanctions against Iraq. Resolution 1483 also reaffirms the sovereignty and territorial integrity of Iraq, meaning commercial laws existing prior to the war should remain in effect. Absent adoption of a new constitution and the attendant regulatory changes, existing Iraqi laws prohibit foreign ownership of specific assets, capital-sharing arrangements between Iraqi and foreign companies, and foreign agents from playing a role. Yet, with the goal of forming a new Iraqi government run by Iraqi citizens, the Authority nonetheless controls the country, its laws and their enforcement, and the humanitarian and reconstruction efforts currently being undertaken. Amid this turmoil and uncertainty, the evolving legal structure and the prevailing "make decisions as you go" operations within the CPA, progress is being made. Because the United States is taking the lead not only as an occupying power, but as the largest contributor of reconstruction funding, substantial opportunities to do business in Iraq reside through contracts with the U.S. government. U.S. Government Contracts The reconstruction and humanitarian aid efforts in Iraq are being administered by the U.S. Agency for International Development (USAID) through grants and contracts. USAID chose to limit competition for the first eight reconstruction contracts awarded. This was done so that the agency could be ready to provide rapid response to any necessary assistance and services required in the event of war, without complicating diplomatic efforts to prevent war that were being undertaken during the procurement process. While this process may have initially excluded qualified companies eager to do business in Iraq, the reality is that these large contracts still provide significant subcontracting opportunities for companies wishing to become involved in the reconstruction effort. The eight contracts awarded are as follows: International Resources Group (IRG) of Washington, D.C. was awarded a personnel support contract, initially funded at $7.1 million, to provide technical expertise for reconstruction. Stevedoring Services of America (SSA) of Seattle, Washington was awarded a seaport administration contract, initially funded at $4.8 million, to provide an initial assessment of the Umm Qasr port to facilitate delivery of humanitarian aid and other reconstruction materials and for other port operation services such as cargo handling and coordination of onward transport of shipments from the seaport. Creative Associates International, Inc. of Washington, D.C. was awarded a primary and secondary education contract, initially funded at $1 million for up to $62.6 million over 12 months, to increase enrollment and improve the quality of primary and secondary education. The contract is to ensure that classrooms have sufficient material by the start of the new school year and to facilitate community involvement and other social mobilization to retain students. Research Triangle Institute of North Carolina was awarded a local governance contract, initially funded at $7.9 million for up to $167.9 million over 12 months, to strengthen the management skills and capacity of local administrations and civic institutions to improve the provision of essential municipal services such as water, health, public sanitation, and economic governance. Bechtel of San Francisco was awarded a capital construction contract, initially funded at $34.6 million for up to $680 million over 18 months, to provide emergency repair and rehabilitation to power generation facilities, electrical grids, municipal water and sewage systems, airport facilities; the dredging, repair, and upgrading of the Umm Qasr seaport; and reconstruction of schools, ministry buildings, irrigation structures and transportation links. An inter-agency agreement awarded work for theater logistical support to the Air Force Contract Augmentation Program, initially funded at $4 million for up to $26 million over 12 months, to support and supplement existing U.S. Air Force contracts. Logistical support services to be provided to USAID and its contractors engaged in the reconstruction effort include warehousing, customs clearance, trucking, and providing bottled water. Skylink Air and Logistic Support (USA) Inc. was awarded an airport administration contract to provide assessments for civilian airports and collaboration for their repair, as well as management of civilian airports to expedite receipt and processing of humanitarian assistance, reconstruction materials, and personnel. Abt Associates, Inc. of Cambridge, Massachusetts was awarded a public health contract, initially funded at $10 million for up to $43.8 million over 12 months, to support a reformed Iraqi Ministry of Health at the national, regional, and local levels and to provide health services; medical equipment and supplies; health education information; to train and recruit health staff; and to determine the specific needs of the health sector and vulnerable populations such as women and children. USAID has also awarded grants to international relief organizations, the United Nations Children's Fund, and the World Health Organization for four programs: (1) Community Action Program, (2) Back to School Campaign ($1 million for one year initially, up to $7 million), (3) Health, Water and Sanitation Services ($8 million for one year initially, up to $40 million), and (4) Health System Strengthening ($10 million for one year). As of the date this column was written, USAID has three outstanding requests for proposal/application (RFPs or RFAs). Under the first RFP for economic recovery, reform, and sustained growth in Iraq, competition has been limited to 10 firms. The second RFP is for agriculture reconstruction and development for Iraq and calls for oversight, identification, and implementation of performance-based program activities to expand agricultural productivity and restore the capacity of Iraqi agro-enterprises. The third RFA is for higher education and development and calls for the establishment of partnerships between U.S. and Iraqi colleges and universities to invigorate and modernize Iraqi institutions of higher education. Oil Field Contracts >From the outset of pre-war planning, the Defense Department reserved the right to oversee and control activity related to the Iraqi oil sector. As a consequence, the U.S. Army Corps of Engineers assumed responsibility for awarding the initial contract covering well control and other refurbishment, maintenance, and operations activities designed to restore and enhance oil production in Iraq. In March, Halliburton subsidiary Kellogg Brown & Root (KBR) was awarded a two-year contract to extinguish oil well fires and provide other oil field services with an estimated contract ceiling of $7 billion. Concerns among some that the range of services that could be ordered under the contract was not limited to urgent post-conflict requirements, as well as unproven allegations of favoritism toward the company due to Vice President Cheney's former position as Halliburton's chief executive officer, resulted in Congressional action on this matter. During its consideration of the FY 2004 Defense Authorization Act, the Senate overwhelmingly adopted a Sense of the Senate provision requiring that the post-conflict portions of the KBR contract be competed in compliance with the Competition in Contracting Act. The resolution also requires the Department of Defense to submit a report to Congress detailing justification for the sole source award to KBR if the contract is not opened to competition by August 31, 2003. In an apparent response to that resolution, the Army has issued a pre-solicitation notice seeking a full range of oil field services, with a proposal due date of August 14, 2003. The notice states that the preferred contracting strategy is to award two contracts, to two different contractors, with statements of work unique to the Iraqi government-owned North Oil Company and South Oil Company. Companies from all Coalition countries are eligible for award. The services to be provided will include extinguishing oil fires; environmental assessments; environmental clean-up at oil sites; assessing all elements of the infrastructure; engineering design and construction to restore the infrastructure to safe operating conditions; oil field maintenance, including technical assistance in the performance of reservoir management, production engineering, in-field drilling, facilities engineering, and maintenance; pipeline maintenance; maintenance of refineries; and even technical assistance and consulting services to the Iraqi North and South Oil Companies. The proposed contracts will range from a minimum of $500,000 to a maximum of $500 million. Privatization The Authority's transition to power pursuant to Resolution 1483, while working towards the formation and installation of a new Iraqi government, is an evolving process subject to frequent change, in part reflecting prevailing "facts on the ground." The Office of Reconstruction and Humanitarian Assistance, formed within the Department of Defense concurrent with the military effort in Iraq, is now in the process of giving way to a new entity designed to support the efforts of the CPA in Baghdad. With predictions that the CPA will likely be involved in Iraq for the next three to five years, decision-makers are now focusing on the formation and role of an interim Iraqi administration and the timing, pace, and structure of privatization efforts to help accelerate capital investment and economic growth. The CPA has appointed a Governing Council composed of 25 Iraqi leaders to serve as the Iraqi people's official representatives to the CPA. While the exact role and scope of responsibilities of that council remain unclear, the appointment nonetheless represents the beginnings of the process to create a functioning Iraqi government. In addition, with the creation of the Governing Council, we also can expect to see the beginning stages of a phased and measured effort to promote privatization of selected state owned enterprises (SOEs), according to Tim Carney, a former senior advisor to the Iraqi Ministry of Industry and Minerals. In public pronouncements, the CPA has repeatedly said it intends for Iraqis to play a major role in the privatization of their economy. According to Carney, the privatization process must be a result of genuine consultation with Iraqis and be "totally transparent." According to Ramiro Lopez de Silva, the United Nations humanitarian coordinator for Iraq, only short- and medium-term initiatives will be used to revive the economy, suggesting that the CPA will leave significant long-term decisions, such as whether the oil industry should be privatized, to an elected Iraqi government. Although no specific details on privatization have been released, CPA officials have offered a tentative description of how they would like to see Iraq transformed into a free market economy. The entire process is currently slated for completion within the next three years. To accomplish this goal, the CPA plans to place SOEs into one of three categories - fast-track, medium-track, and long-track. SOEs that are debt-free and capable of competing with other firms in the region will be classified as fast-track SOEs. Debt-ridden and inefficient state-owned firms will be classified as long-track SOEs. Fast-track SOEs will be sold to Iraqi and foreign investors during the next year. Long- and medium-track SOEs will likely be dissolved, merged, or sold to investors. Conclusion Business opportunities in post-war Iraq are likely to be limited to government contract and joint venture efforts, at least for the near term until a clear process emerges with an identifiable Iraqi entity authorized to enter into longer term arrangements on behalf of the Iraqi people. As the CPA looks to other international partners to help with the reconstruction costs and effort, the role of the UN may also increase. For the immediate future, companies wishing to transact business in Iraq should monitor U.S. government websites and contact USAID contractors and grantees directly for information on subcontracting opportunities. As events continue to unfold, additional opportunities for U.S. government contracts may also be offered. Positive business relationships formed through the performance of these government contracts and subcontracts, however, can lead to long-term commercial connections As is the case not only in Iraq, but worldwide, contracting with the U.S. government is a particularly useful gateway to transacting business overseas. ************** *Michael R. Charness is a Partner and Co-Chair of the Government and International Procurement Group in the Washington, D.C. office of Vinson & Elkins L.L.P. Charmaine A. Howson is an Associate in the Government and International Procurement Group at Vinson & Elkins L.L.P. .Frank A. Verrastro is formerly a Senior Policy Advisor at Vinson & Elkins L.L.P. and current Director of the Energy Program at CSIS. Contributions to this article were made by Will Alexander, a Summer Associate at Vinson & Elkins L.L.P. and law student at the University of Texas. This material is not intended to create, and does not create, an attorney-client relationship between you and Vinson & Elkins L.L.P., and you should not act or rely on any of this information. As legal advice must be tailored to the specific circumstances of each case, nothing provided herein should be used as a substitute for advice of competent counsel. These materials do not constitute legal advice, do not necessarily reflect the opinions of Vinson & Elkins L.L.P. or any of its attorneys or clients, and are not guaranteed to be correct, complete, or up-to-date. Vinson & Elkins L.L.P. assumes no liability for the use or interpretation of information contained herein. This publication is provided "AS IS" WITHOUT WARRANTY OF ANY KIND, EITHER EXPRESSED OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, OR NON-INFRINGEMENT. Unless otherwise indicated, V&E attorneys listed are: not Certified by the Texas Board of Legal Specialization. None of the attorneys listed on this website is certified as an "expert" or "specialist" pursuant to any authority governing the practice of law in New York. Vinson & Elkins is a registered limited liability partnership. Principal office-Houston. _______________________________________________ Sent via the discussion list of the Campaign Against Sanctions on Iraq. To unsubscribe, visit http://lists.casi.org.uk/mailman/listinfo/casi-discuss To contact the list manager, email casi-discuss-admin@lists.casi.org.uk All postings are archived on CASI's website: http://www.casi.org.uk