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Correcting over-reliance on contractors in contingency operations

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Commission on Wartime Contracting in Iraq and Afghanistan – At what risk? Correcting over-reliance on contractors in contingency operations, Second Interim Report to Congress, Recommendations for Legislative and Policy Changes Commission, February 24, 2011

  • “Federal reliance on contractors to support defense, diplomatic, and development missions during contingency operations stands at unprecedented levels. Over the course of the past nine years, contractors have at times exceeded the number of military personnel in Iraq and Afghanistan. Total spending through contracts is correspondingly large. While there is no central federal source for definitive data on contracts and grants regarding contingency operations, the Commission’s conservative estimate is that since October 2001, at least $177 billion has been obligated on contracts and grants to support U.S. operations in Iraq and Afghanistan. Given the magnitude of mission and money at risk, losses from waste, fraud, and abuse represent a significant cost. While the impact on mission cannot be readily quantified, misspent dollars run into the tens of billions.
    • The Special Inspector General for Afghanistan Reconstruction (SIGAR) warned at the Commission’s January 2011 hearing that the entire $11.4 billion for contracts to build nearly 900 facilities for the Afghan National Security Forces is at risk due to inadequate planning. This estimate does not include the waste that has resulted from the host country’s inability to sustain projects.
    • The Association of Certified Fraud Examiners has reported a survey-based estimate that 7 percent of revenue is lost to fraud. Applying this metric to the $177 billion in contingency contracts and grants suggests the cost of federal failure to control the acquisition process could be as high as $12 billion for fraud, not including contract waste.
    • New and expanded, often time-critical missions combined with
      ceilings on civilian and military personnel have led senior officials and commanders to rely on contractors as the default option.”
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