Firm Seeks ‘Termination Costs’ for Iraq Contract

WASHINGTON —  Nour USA, a Virginia-based company whose $327-million contract to equip the Iraqi army was canceled because of “irregularities” in the bidding process, formally protested the action in a filing with the U.S.-led Iraq occupation authority.

Nour asked for $20 million to $30 million in “termination costs” and argued that the cancellation and subsequent disclosure of the company’s proposal had “done considerable harm” to it.

Nour also reiterated that it has no business relationship with Ahmad Chalabi, a member of the Iraqi Governing Council, despite his ties with Nour’s chairman, A. Huda Farouki of Washington.

A U.S. Army official cited errors made by contracting officers as well as “ambiguities” in the phrasing of the contract in canceling the deal with Nour and seeking new bids.

The process is expected to further delay the equipping of the Iraqi army.