This paper develops a distributed bit and power allocation algorithm with beamforming in an iterative fashion for multi-cell orthogonal frequency division multiplexing (OFDM) systems on uplink. The model of the multi-cell channel with frequency reuse is considered. The transmit signal from each mobile causes interference to the received signals of other base stations. The scheme aims to minimize the total mobile transmit power while satisfying the required data rate and bit error rate (BER) of each mobile. The proposed scheme offers better performance than the fixed bit allocation and tremendously reduces computational complexity compared to the multi-user greedy method with insignificant performance degradation.