The US seems to have decided that the countries that didn't help with the war effort, shouldn't profit from the reconstruction. 'Why should our taxpayers help German, French or Russian companies.' It sounds logical, but it only means those taxpayers will end up paying more then necesary.
Why? Simple. It might be true that French, German or Russian companies have the better/cheaper solutions. Making American taxpayers pay for inferior or more expensive solutions is bad for the American taxpayers, anyway you turn it. It was the same with the new cell phone system Iraq was going to get. Anybody knew the GSM was the way to go: it is well tested and the hardware is cheap. But it is not American, so some said, let's buy American. That would have been more expensive.
If you really want to reconstruct Iraq in the best way possible, use the best solutions money can buy, not the best solutions money can buy from a selected set of providers.