Contractors’ Support of U.S. Operations in Iraq

August 2008




 

Notes 

All dollar amounts are in 2008 dollars.

Unless otherwise indicated, all years referred to in this report are federal fiscal years.

Numbers in the text and tables may not add up to totals because of rounding.

Obligations are a legally binding commitment by the federal government that will result in outlays, immediately or in the future.




Preface

Contractors play a substantial role in supporting the United States’ current military, reconstruction, and diplomatic operations in Iraq. That support has raised questions regarding the costs, quantities, functions, and legal status of contractor personnel working in the Iraq theater.

This Congressional Budget Office (CBO) paper, which was prepared at the request of the Senate Committee on the Budget, examines the use of contractors in the Iraq theater from 2003 through 2007. It provides an overview of the federal government’s costs of employing contractors in Iraq and in nearby countries, the type of products and services they provide, the number of personnel working on those contracts, comparisons of past and present use of contractors during U.S. military operations, and the use of contractors to provide security. CBO also investigated the command-and-control structure between the U.S. government and contract employees and the legal issues surrounding contractor personnel working in Iraq.

This paper was prepared by Daniel Frisk and R. Derek Trunkey of CBO’s National Security Division under the supervision of J. Michael Gilmore and Matthew Goldberg. Adam Talaber contributed to the analysis, and Adebayo Adedeji and Victoria Liu provided additional assistance. Robert Dennis, Theresa Gullo, and Frank Sammartino provided helpful comments. Robert Murphy reviewed the section on legal issues, as did Jennifer Elsea of the Congressional Research Service. Victoria A. Greenfield, a professor at the United States Naval Academy, reviewed the entire study. (The assistance of external reviewers implies no responsibility for the final product, which rests solely with CBO.)

Sherry Snyder edited the study, and Loretta Lettner proofread it. Cindy Cleveland produced drafts of the manuscript. Maureen Costantino prepared the report for publication and designed the cover. Lenny Skutnik printed the initial copies, Linda Schimmel handled the print distribution, and Simone Thomas prepared the electronic version for CBO’s Web site.

Peter R. Orszag
Director

August 2008




Contents

Introduction and Summary

Costs, Functions, and Numbers of Contractor Personnel in the Iraq Theater

The U.S. Government’s Obligations for Contracts Principally Performed in the Iraq Theater

Products and Services Provided by Contractors in the Iraq Theater

Counting and Tracking Contractor Personnel in the Iraq Theater

Comparing Past and Present Use of Contractors During Military Operations

Private Security Contractors

Costs for Private Security Contractors and Subcontractors

Costs for PSC Personnel Compared with a Military Alternative

Number of PSC Personnel in Iraq

PSC Personnel Who Are Armed

Legal Issues Associated with Contractor Personnel Supporting U.S. Operations

Restrictions on the Use and Arming of Contractor Personnel

Military Authority Over Contractor Personnel

Legal Status of Contractor Personnel

Laws Governing the Conduct of Contractor Personnel Supporting Military Operations

References


Tables

1. Number of Contractor Personnel Working in the Iraq Theater, by Department or Agency Awarding the Contract

2. Presence of Contractor Personnel During U.S. Military Operations

 

Figures

1. The U.S. Government’s Obligations for Contracts Performed in the Iraq Theater, 2003 to 2007

2. The Department of Defense’s Obligations for Contracts Performed in the Iraq Theater, by Department or Agency Awarding the Contract, 2003 to 2007

3. U.S. Government Contracts Performed in the Iraq Theater, by Product and Service Code, 2003 to 2007

4. Number of Contractor Personnel Working on Contracts in Iraq Funded by the Department of Defense, by Function and Nationality

5. Number of Contractor Personnel Working on Contracts in Iraq Funded by the Department of State, by Function

 

Boxes

1. The Federal Procurement Data System—Next Generation

2. Costs of a Private Security Contract and a U.S. Military Alternative

 


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