U.S. awards $485 million 'security' contract to Aegis

Above: 'Security contractors' at a reconstruction site in Iraq. The contract extended for two years an agreement with Aegis to provide security at reconstruction sites.

The US government quietly gave a $485 mln security contract for Iraq to a private British firm within the week that US contractors were accused of opening fire on and killing Iraqi civilians.

The highly contested deal, the largest security contract awarded in Iraq, was won by Aegis Defence Services, a 5-year-old company run by a former British army officer one of whose previous companies helped put down coups in Africa.

Industry experts say the deal shows just how well positioned British firms are in the battle to make money amid Iraq’s chaos, as US companies, particularly in the wake of last month’s shooting, come under increasing scrutiny.

The deal was not awarded without controversy—Erinys, a rival bidder, has filed a lawsuit to try to block it and another has said it is ‘considering its options’—but Aegis was expected to retain the contract.

Aegis, which employs about 1,200 people, has now attracted nearly $800 mln in US government contracts, making it one of the most financially successful firms operating in Iraq.

Read the rest at Khaleej Times

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