Background

Founded more than a century ago in Massachusetts as a civil infrastructure contractor, Perini is known today for its hospitality and gaming industry projects, and for its corrections, health care, sports, entertainment and educational expertise. It is the largest casino and hotel builder in the United States. It also builds hospitals, prisons and public buildings. In addition, Perini is a major player in civil infrastructure construction, working on everything from bridges and highways to subways and airports.

Chairman and CEO Ronald Tutor and billionaire investor Richard Blum, who together own investment groups that hold 75 percent of Perini's voting stock, control the company. Blum is the husband of U.S. Sen. Dianne Feinstein.

In addition to Perini, Tutor and Blum conduct a great deal of business through another company called Tutor-Saliba. Among that company's largest projects is the Los Angeles subway system.

Iraq contracts

In April 2003, the U.S. Army Corps of Engineers' Transatlantic Programs Center awarded a contract to Perini worth as much as $500 million to provide goods and services to the U.S. Central Command. Washington Group International and Fluor Intercontinental were awarded similar contracts. The indefinite delivery/indefinite quantity (IDIQ) contract has a performance period of one year. The IDIQ contract allows the Corps of Engineers to call upon the contracted companies to rapidly execute design and construction services as needed anywhere in CENTCOM's area of operations to support military operations, other U.S. government agencies, or friendly foreign governments under established agreements. The area of operations encompasses 25 nations from the Horn of Africa into central Asia, including Afghanistan and Iraq. No specific work or location for work to be performed has been identified to date.

In late September 2003, the Army Corps of Engineers issued additional task orders totaling $278 million on the three individual contracts and the Corps decided to raise the contract ceiling from $100 million to $500 million.

Perini will repair electrical infrastructure in southern Iraq, while Fluor and Washington Group International will perform similar work in central and northern Iraq.

Afghanistan contracts

In March 2003, Perini was awarded a contract by the U.S. Army Corps of Engineers, Transatlantic Programs Center, for the design and construction of facilities to support the First Brigade of the Afghan National Army, located near Kabul.

Perini is the prime contractor for this $25 million, fast-track project, providing overall program management, design management, construction management and supervision, and quality control. The Perini team includes Tetra Tech, Azad Architects, and POWER Engineers.

The project consists of three phases, with occupancy of some facilities to begin in May 2003 and a final completion date of August 2003. It is unclear if the work has been completed. The facilities consist of barracks, dining facilities, a power plant, a water treatment facility and a wastewater treatment plant. Construction was started on January 19, 2003.

On April 4, 2003, the Army Corps of Engineers' Transatlantic Programs Center announced that it had awarded three contracts "to rapidly execute design and construction services as needed anywhere" in the area of operations for the U.S. military's Central Command (CENTCOM). The one-year contracts, awarded to Fluor Intercontinental, Perini Corporation and Washington Group International, are indefinite delivery/indefinite quantity (ID/IQ) contracts with a guaranteed minimum value of $500,000 and a maximum of $100 million. However, in late September 2003, the Army Corps of Engineers issued additional task orders totaling $278 million on the three contracts and the Corps decided to raise the contract ceiling from $100 million to $500 million.

According to the Pentagon: Perini, alongside Fluor Intercontinental and Washington Group International, will remove and rebuild damaged roads and replace a destroyed bridge in Afghanistan as part of their individual IDIQ contracts to support CENTCOM.

Government ties

Principal shareholder Richard Blum, who co-owns 75 percent of Perini's voting shares, is the husband of U.S. Sen. Dianne Feinstein, a Democrat from California who serves on the Appropriations Committee and the Select Committee on Intelligence.

Legal Action/Investigations

Perini entered into a contract worth roughly $41 million with the City of New York to upgrade and expand the structures and equipment at the Coney Island Water Pollution Plant. During performance of the contract, the city issued several change orders that increased the time required to complete the contract and caused Perini to incur extra costs. Perini notified the city that it had incurred or would incur damages as a result of the change orders. Perini and the city were unable to resolve the issue, so Perini sued. The federal courts ultimately ruled in the city's favor.

Updates

As of May 20, 2004
On March 12, 2004, the Program Management Office awarded Perini a contract with a ceiling of $500,000,000 for "electrical power distribution and transmission" in the southern region of Iraq.

—Bob Williams