Hailey firm reviving Iraq’s
electricity
Power Engineers bags
restoration contract
By MATT FURBER
Express Staff Writer
Joining the ranks of Halliburton
and Bechtel, Hailey-based Power Engineers is a recipient of U. S.
government contracts for infrastructure improvements in Iraq, following
the second Gulf War.
Power Engineers engineering
consultant Rob Reihl inspects an electrical tower in southern Iraq
pulled down by looters after the Iraq War. It was one of more than 200
towers toppled for the value of the wire by looters using cables and
tractors. Courtesy photo
Power Engineers is serving as a
subcontractor to Perini Corporation, a century old civil infrastructure
contractor. Tapping into the source of work has helped Power Engineers
pull out of the doldrums of the post Sept. 11, 2001, economy, company
officers said.
Awarded by the U.S. Army Corps of
Engineers’ Transatlantic Programs Center, the Perini work is called an
indefinite delivery/indefinite quantity (IDIQ) contract for design and
construction work throughout the U.S. Central Command Area of
Responsibility (CENTCOM-AOR), which includes 25 countries that include
Iraq and Afghanistan.
Power Engineers and Perini are
currently involved in a contract called CENTCOM I that is expected to be
completed in September, said Ed Greco, Perini design coordinator for
Iraq projects.
"We’re providing on–site
engineering support and expertise," said Les Hinzman, a Power Engineers
project engineer. He recently returned from Iraq after spending two
months supporting Perini as the company began to refurbish a 250-mile
long string of electrical towers. "The big government contractors are
not design experts like we are."
Power Engineers project
engineer Les Hinzman poses at the Kuwaiti and Iraqi boarder in
southern Iraq on his way to work designing repairs to 250 miles of
sabotaged electrical towers. Courtesy photo
"Our role has been to provide
engineering support for repairing the existing power system," said Power
Engineering Vice President and Manager of Transmission and Distribution
Bill Eisinger. "There was a lot of damage from the war and subsequent
sabotage. We have thousands of photographs."
Hinzman, who took some of the
pictures, said people were pulling the towers down with cables and
tractors to salvage the wire from the power lines.
"When I got in country, 130 towers
had been torn down," he said. "By the time I left 280 were down."
Many of the towers that once stood
100 to 120 feet high look like the wreckage of a Star Wars or Lord of
the Rings film shot after an epic battle scene.
Power transmission and
distribution design work has been the bread and butter of the
employee-owned company started in 1976. That branch of the business is
about 60 percent of the $100 million company’s gross revenue.
Today, the company has 12 offices
in the United States, with two in Idaho and the latest that has just
opened in Maine. There are two international bases, one in the United
Kingdom and one in Buenos Aires.
Power Engineers has done some work
on electrical systems for U.S. military bases, but the firm is fairly
new to government contracts, said company president Jack Hand. It hired
a Washington, D.C., insider two years ago to facilitate an entrance into
the marketplace of government contracts. Hand said the work is not
necessarily difficult but requires a lot of paperwork.
"It is hard to pin work down,"
Hand said. "Our reputation gets us high on the list. When (our engineers
are) busy we do well."
Over the years Power Engineers
branched out into the telecom and power generation fields. Less diverse
engineering companies weren’t able to withstand recent economic
downturns.
For example, the bankruptcies of
companies like Enron, Worldcom and MCI and the collapse of their
respective industries caused less diverse engineering companies to go
under when work dried up.
Power Engineers has 600 employees,
but has not had to lay off many permanent staff. Hand said as the
economy picks up, the telecom and energy production branches of the
business are taking off again.
"We struggled for two years, but
we are still in business. Our diversity saved us," Hand said. "I tell
people 2003 was our worst year in the last five or six, but it was still
better than the first 20 years."
Power Engineers is the largest
power transmission and distribution design company in the country,
according to Engineering News Record.
The current contract will be
followed by a second IDIQ contract called CENTCOM II that has recently
been approved. It could bring Perini as much as $1.5 billion.
"Under CENTCOM II we don’t know
where were going yet," Greco said. "We still have a lot of work under
CENTCOM I."
Greco expects that most of CENTCOM
II will continue to involve Iraqi reconstruction and Power Engineers
will be included by Perini.
"They are doing an excellent job
for us," he said.
So far, about a dozen Power
Engineers have traveled to Iraq. Meanwhile, support staff at home in
Hailey and several other offices work through the Iraqi night to solve
problems from the previous day.
"The time change gives us a real
advantage back in Hailey," Hinzman said. "We work while they sleep. It
shows the true advantage of the Internet. We can provide drawings and
information electronically."
The CENTCOM work is only about 3
to 4 percent of the company’s current scope of projects. Nevertheless,
it comprises half of the 30 percent quarterly jump in revenue Power
Engineers experienced from the first quarter for fiscal year 2002 to the
first quarter in 2003.
Companies like Power Engineers are
hired to fill niches of expertise, but the organizational muscle of the
U.S. military puts the package together, Hand said.
"U.S. Central Command has thrown
its administrative force at reconstruction," Hand said. "There are
weekly conference calls with (generals in charge of the projects)."
Filled with media images and news
about post war Iraq, Hinzman said the first day in country was the
hardest. But, as he got his feet on the ground and his security was
ensured, the two months he spent providing consulting services went
well.
One of the provisions of the
CENTCOM contracts is that contractors like Perini hire Iraqis.
"The local sheik is like the
employment agency," Hinzman said. "We’re contractors, per se, in Iraq
for the ministry of electricity. If power lines are being built,
(Iraqis) would build them.
"The contractors bring Iraqis out,
give them training, steel toed boots and hard hats," he said. "It was
pretty interesting. Our security group hired a lot of Iraqis. The
British-based firm would hire Iraqi drivers, who would come with their
own car to help us blend into the local population."
Hinzman said he believes one of
the reasons seven Spanish intelligence officers were killed in an ambush
in central Bagdad last year is because they were travelling in new
vehicles mistaken for coalition forces.
Power Engineers staff travels with
a lower profile in Iraq. It is part of their security protocol. They
also have a curfew that gets them in their hotels by nightfall.
"We never went out at night. When
we go out, we never have less than two security vehicles with us," he
said. There is a driver and a lead car with an armed shooter in the
backseat, he said. "They all carried AK47s and pistols."
Part of the security detail
included clearing the way of any unexploded ordnance when the engineers
were travelling to the power lines they were charged with repairing.
"I saw plenty of ordnance laying
around," he said. "There is a lot of stuff that just doesn’t explode
(during combat)."
Some of the shells and
rocket-propelled grenades were left over from the Iran-Iraq war and the
first Gulf war, Hinsman said. "I think these big contractors bring a lot
to the table the way they organize and mobilize quickly. We were working
long hours. It was very professional."
Hinsman did get some good
windshield photographs, including a string of camels that stretched for
over a mile down the highway.
"Some of what I saw was right out
of the Bible," he said.
"It’s an eye opener. There is a
lot of looting. It kind of surprised me when I got there. They just live
so much differently than we do.
"I haven’t complained about
anything since I got home. We have so much control over our lives, our
security. I was actually pretty hopeful for the Iraqi people when I
left. They are industrious and hard working. They’ve got that particular
resource, oil. It seems to me you go back in ten years and its going to
be an unbelievable place."