Difficulties Continue for U.S. Contractor in Iraq

On June 19, the U.S. Army Corps of Engineers (Corps) announced that it cancelled a $99.1-million contract for Parsons to build a prison north of Baghdad, saying the firm was more than two years behind schedule and over budget. This announcement came just weeks after the Corps cancelled another Parsons contract, which was valued at $300 million to construct hospitals and clinics.

Further, the Corps now says that it will conduct a thorough review of all Parsons contracts in Iraq, which are worth approximately $4 billion.

Parsons released a brief statement regarding the cancellation, saying only that it performed its work in compliance with the contracts and under direction of the Corps.