Defense Contracting in Iraq: Issues and Options for Congress

Abstract

This report examines logistical support contracts for troop support services in Iraq primarily administered through the U.S. Army's Logistics Civil Augmentation Program (LOGCAP). LOGCAP is an initiative designed to manage the use of civilian contractors that perform services during times of war and other military mobilizations. On April 18, 2008, DOD announced the Army's LOGCAP IV contract awards to three companies - DynCorp International LLC, Fort Worth, TX; Fluor Intercontinental, Inc, Greenville, SC; and KBR, Houston, TX, through a full and open competition. The LOGCAP IV contract calls for each company to compete for task orders. Each company may be awarded up to $5 billion annually for troop support services with a maximum annual value of $15 billion. Over the life of LOGCAP IV, the maximum contract value is $150 billion. Congress is concerned about the Federal oversight and management of DOD contracting in Iraq, particularly under LOGCAP. Recent assessments from the Government Accountability Office (GAO), DOD Office of the Inspector General (DOD-IG), and the Special Inspector General for Iraq Reconstruction (SIGIR) reveal a lack of accountability for large sums of money spent for Iraq contracts. Congress is also concerned about contractor insurance premiums through the Defense Base Act (DBA); such premiums comprise significant costs under LOGCAP. The DBA requires that many Federal government contractors and subcontractors provide workers compensation insurance for their employees who work outside of the United States. The U.S. Army's LOGCAP contract covers costs for DBA insurance and includes significant overheard and other costs beyond the costs of the actual insurance claims. In 2007, the U.S. Army audited DBA costs under LOGCAP and uncovered rising program costs and wide fluctuations in insurance rates.

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Document Details

Document Type
Technical Report
Publication Date
Aug 15, 2008
Accession Number
ADA486297

Entities

People

  • Valerie B. Grasso

Organizations

  • Library of Congress

Tags

Communities of Interest

  • Biomedical
  • Counter WMD
  • Human Systems

DTIC Thesaurus Topics

  • Air Force
  • Business Administration
  • Civil Engineering
  • Congress
  • Contingency Operations (Military)
  • Contract Administration
  • Contracts
  • Employment
  • Government Procurement
  • Governments
  • Law
  • Military Acquisition
  • National Governments
  • National Security
  • Personnel Management
  • United States Government
  • Warfare

Readers

  • Government Contracting/Procurement.
  • Military and Counterinsurgency Studies.