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Fun Facts on War Contracting

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All right, maybe "fun" is an exaggeration. But the first report of the Commission on Wartime Contracting in Iraq and Afghanistan -- created as a result of legislation sponsored by Senators James Webb (D-VA) and Claire McCaskill (D-MO) -- contains far more than just the usual bureaucratic verbiage that too often characterizes documents of this sort. It includes information that is critical to determining whether it is possible to curb contractor fraud and abuse in theaters of conflict.

For example, did you know that there are now over 240,000 contractor personnel in Iraq and Afghanistan, doing everything from washing dishes and doing laundry to carrying guns? This is the highest figure I have yet seen, and it is more than the roughly 200,000 U.S. troops deployed to the two conflicts. Of the 240,000, the commission report asserts that as few as 21,000 -- less than 10 percent -- are armed private security contractors. That's still a large contingent, but it suggests that regulating -- or eliminating -- them may be possible without in any way "crippling" the U.S. military efforts in either country.

Who keeps an eye on the hired guns? An agency known as the Armed Contractor Oversight Directorate (ACOD). In Afghanistan, its day-to-day operations are handled not by U.S. government personnel, but by a private contractor, the Aegis corporation of the UK. This means that initial rulings on things like "escalation of force" incidents (wounding or killing civilians, for example) are dealt with by an official of a private company.

Back on the reconstruction front, you'll be happy to know that KBR -- the former unit of Halliburton that was spun off a while back -- is still doing the bulk of reconstructioni work in Iraq despite the advent of a new contract that was supposed to split up the work among several companies. The Special Investigator General for Iraq Reconstruction (SIGIR) suggests that at least $3 to $5 billion in U.S. tax dollars (not to mention billions more in Iraqi funds paid to U.S. companies) have been wasted in Iraq. One obvious reason has been lack of oversight. Of the 516 personnel that are supposed to monitor KBR's big contract, only 186 are in place -- just over one-third of the mandated total.

All right, so maybe these aren't the most scintillating statistics you've ever heard. But they do give some sense of why there is so much fraud and abuse in Iraq and Afghanistan (the other obvious one being that it's easier to steal during the "fog of war" than under normal civilian circumstances).

A last point that was underscored in the Wartime Contracting Commission report was the continuing militarization of U.S. foreign aid. The Commander's Emergency Response Program (CERP) has now received nearly $5 billion since 2003, for local projects that can for the most part be undertaken with just the okay of the local military commander. While there is some argument that this allows for flexibility and the ability to show an immediate impact, it is also awfully fast and loose, and it takes a large portion of development assistance out of the hands of civilian agencies, where it rightly belongs. The militarization process is even expressed in the language of the CERP program. Its manual is entitled "Money as a Weapon System." And an officer who spoke to the contracting commission referred to CERP's road building efforts with the phrase "asphalt is ammunition."

This is just the commission's initial report -- a final report with detailed recommendations will come out next year.


6 Comments

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War itself is a huge waste, fraud, and abuse, benefiting only the people who profit from it in various ways. So what's to be gained by making it more efficient -- greater public acceptability of war? Any money "saved" from making war more efficient is really only less money wasted, and probably the warmongers would find new ways to waste any "savings" anyhow.

It's interesting that, according to the report, private security contractors are guarding forward operating bases. They'll be going on patrol next, and then what's left?

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What is to be gained is less accountability, a smokescreen about how many 'troops' are stationed in any theatre, and a shell game to play 'hide the money.'

Sounds like KBR has roughly the same level of oversight that AIG's hedge funds had.

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Ahead of the presidential election in Iran, a Port Louis weapons broker, on behalf of a foreign government, is reported as offering for urgent sale the following WMD

1187 No. Tellar-Ulam 1 megaton thermonuclear fission bombs &

520 No. Jericho III High Impact ballistic missiles c/w nuclear warheads

which are now surplus to requirements.

Best cash offer over US$ 2.5m FOB will be accepted

Bids sought immediately for immediate delivery by FedEX

Successful bidder will be also entitled to receive 1000 complimentary cluster bombs plus 22 type F16 aircraft delivered FOC with main shipment

Note: no pre-qualification necessary

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bluecanary says:

Bids sought immediately for immediate delivery by FedEX

Um, but what FedEx driver would drive the truck?

(humor)

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No sweat! We've got a driver, name of Bush, an older guy from Texas, who's up for it. Says his wife will co-drive the rig. He's been livin on state handouts a while and needs the work. Says he doesn't know a whole lot 'bout nukes but he did used to sell them one time on behalf of the government, so he reckons he's qualified ...

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It has become conventional wisdom that the US GOV'T is soooooo large that we must accept the fact that they can't keep track of contractor's and the waste or cost. Is it just easier to just pay these fraudster's as they are operating thousands of miles away?

Recently, Wackenhut was brought before Congress regarding their excesses...but they whined and essentially got another free pass.

Sadly, this is the same company who hired the security guard who was killed at the Holcaust Museum. He was fatally injured because this same company failed to provide these guards with bullet-proof vests.

Why is there no outrage or at least complaints being lodged against Wackenhut? If the museum staff have the documentation to support their claim that they requested these vests and the company failed to supply them, then the country now has a LOCAL view of how this company is looking at the bottom line, instead of providing safety for the public and it's employees.

To extrapolate their actions in the US as what to expect in foreign countries...that is not a stretch and the US GOV. needs to take a closer look!

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