Obama to Exclude U.S. Companies from $300 Million Palestinian Project

The Obama Administration today revealed it is embarking upon a $300 million Palestinian construction project; U.S. companies, however, need not apply.

Indeed, the stated goal of this U.S. Agency for International Development (USAID) project is to award program contracts solely to West Bank and Gaza-area vendors, according to presolicitation notice released today. 

The Local Construction Program, or LCP, as it is known, will seek out non-governmental entities to carry out a variety of initiatives involving "local construction or rehabilitation of roads, buildings, water, wastewater, public buildings including health facilities, schools, and other infrastructure."

USAID said it expects to release a formal Request for Proposals around September 3, and will not accept bids until that time. The agency revealed few other details.

As U.S. Trade & Aid Monitor reported earlier this year, USAID began awarding contracts in a separate Palestinian project worth upwards of three-quarters of a billion dollars (see: USAID Contracts Start Flowing in $750 Million Palestinian Infrastructure Project; Monitor, Jan. 14, 2012).

Helping to create a modern Palestinian state is a top priority for the Obama White House, which explicitly has made clear its intentions to accomplish that task -- even if it means taking away business from Israel.

Indeed, as the Monitor has been reporting since last year, the Obama Administration went so far as to launch a project whose aim is to draw tourists away from Israel and re-direct them to Palestinian lands (see:  $58 Million USAID Contract to Help Steer Tourists Out of Israel and into West Bank, Gaza; Monitor, Jan. 7).

Similarly, Obama via USAID wants to ensure that the Palestinians -- and the world -- appreciates U.S. involvement in that region (see: Obama Launching Appeal to Palestinians -- Media Blitz to Promote U.S. Role in 'Building' Future State).

Source document: Solicitation #RFP-294-12-000008.

Comments

[Steve Peacock]

I now see, WarriorBanker, where you are coming from. Not simply as a self-described "recovering conservative" (which is funny, because I happen to regularly describe myself as a "recovering liberal" -- see, we DO have something in common in a twisted way), but as an admitted atheist and apparently a socialist.

I love your blog post in which you say, "Cuba is poor but its people are generally happy because they are relatively well off in the sense that their basic needs are met, at least to some degree, by the state."

I see. Perhaps you should consider moving to Cuba or some other country where the state controls all facets of your existence. Now I see why you -- a Canadian, no less -- think that U.S. taxpayer dollars should be used to save not only ourselves but the rest of the world as well. I'm not sure why you care, anyhow, since as an atheist you see the world as an accidental occurrence without meaning. Doesn't your socialist side conflict -- in a glaringly hypocritical way -- with your atheist worldview?

[Steve Peacock]

I wholeheartedly agree that such a project would benefit the local economy of the Palestinians. That point is not disputed. But you are missing the main point that apparently thousands of other people enraged at this project are now discussing: Considering that the U.S. economy continues to hobble along (and even in the absence of such struggle), at what point do taxpayers draw the line with having their hard-earned money shipped overseas? This is simply the latest in a long line of contracts that our government awards in the name of statecraft -- but which only serve to drain the bank accounts of current and future generations of Americans (with the exception, of course, of those contractors -- often led by former USAID officials -- who usually secure such contracts).

[WarriorBanker]

What a non-story. The whole point of these sorts of contracts is to develop the local economy's capabilities. There would be absolutely no point in having US companies do the work in terms of delivering local long term benefits.