Today's Article
And they account for
only 20 percent of
the $446 billion
Bush has spent for
his misadventure in
Iraq.
only 20 percent of
the $446 billion
Bush has spent for
his misadventure in
Iraq.
The American Spark
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Iraq Contractors Cost U.S. Taxpayers $85 Billion So Far
By Cliff Montgomery - Aug. 15th, 2008
An August 2008 Congressional Budget Office (CBO) report gives "an overview of the federal costs of
employing contractors in Iraq and in nearby countries," that "covers the period from 2003 through 2007," thus
covering costs from the very start of Bush's fruitless nation-building.
The CBO study records several eye-opening findings. The American Spark provides its readers with the
entire report for their perusal, and offers a few of the most interesting items from the report's introduction below.
"Contractors play a substantial role in supporting the United States’ current military, reconstruction, and
diplomatic operations in Iraq, accounting for a significant portion of the manpower and spending for those
activities.
"The Congressional Budget Office (CBO), at the request of the Senate Committee on the Budget, has studied
the use of contractors in the Iraq theater to support U.S. activities in Iraq. [...]
"The findings of CBO’s study include the following:
"Private security contractors have been a particular focus of attention. CBO finds that:
"From 2003 through 2007, U.S. government agencies obligated a total of $85 billion for contracts principally
performed in the Iraq theater, CBO estimates.
"In-theater support for operations in Iraq occurred in multiple countries, including $63 billion of obligations for
contracts principally performed in Iraq, $14 billion for contracts principally performed in Kuwait, and $8 billion for
contracts principally performed in other nearby countries.
"New obligations for contracts performed in the Iraq theater have totaled about $17 billion to $21 billion
annually since 2004.
"The $85 billion in obligations for contracts performed in the Iraq theater accounts for almost 20 percent of the
$446 billion of U.S. appropriations for activities in Iraq from 2003 through 2007 (CBO 2008, p. 7, converted to
2008 dollars).
"However, the $85 billion estimate does not capture the total share of U.S. spending on Iraq that goes to
contractors.
"CBO’s estimate excludes the costs of contracts supporting operations in Iraq that are performed in countries
outside the Iraq theater, including the United States (such as the manufacture of mine-resistant ambush-
protected vehicles, or MRAPs, and any of the other military equipment used in the Iraq theater)."
Like what you're reading so far? Then why not order a full year (52 issues) of the The American Spark e-
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By Cliff Montgomery - Aug. 15th, 2008
An August 2008 Congressional Budget Office (CBO) report gives "an overview of the federal costs of
employing contractors in Iraq and in nearby countries," that "covers the period from 2003 through 2007," thus
covering costs from the very start of Bush's fruitless nation-building.
The CBO study records several eye-opening findings. The American Spark provides its readers with the
entire report for their perusal, and offers a few of the most interesting items from the report's introduction below.
"Contractors play a substantial role in supporting the United States’ current military, reconstruction, and
diplomatic operations in Iraq, accounting for a significant portion of the manpower and spending for those
activities.
"The Congressional Budget Office (CBO), at the request of the Senate Committee on the Budget, has studied
the use of contractors in the Iraq theater to support U.S. activities in Iraq. [...]
"The findings of CBO’s study include the following:
- From 2003 through 2007, U.S. agencies awarded $85 billion in contracts for work to be principally
performed in the Iraq theater, accounting for almost 20 percent of funding for operations in Iraq. (Dollar
amounts in this paper are in 2008 dollars.) More than 70 percent of those awards were for contracts
performed in Iraq itself.
- The [U.S.] Department of Defense (DoD) awarded contracts totaling $76 billion, of which the Army
(including the Joint Contracting Command—Iraq/Afghanistan) obligated 75 percent. The U.S. Agency for
International Development and the Department of State obligated roughly $5 billion and $4 billion,
respectively, over the same period.
- Contractors provide a wide range of products and services in-theater. Most contract obligations over the
2003–2007 period were for logistics support, construction, petroleum products, or food. [...]
- Although personnel counts are rough approximations, CBO estimates that as of early 2008 at least
190,000 contractor personnel, including sub-contractors, were working on U.S.-funded contracts in the
Iraq theater. Just under 40 percent of them are citizens of the country where the work is being performed
(primarily Iraq); about 20 percent are U.S. citizens.
- The United States has used contractors during previous military operations, although not to the current
extent. [...]
"Private security contractors have been a particular focus of attention. CBO finds that:
- Total spending by the U.S. government and other contractors for security provided by contractors in Iraq
from 2003 through 2007 was between $6 billion and $10 billion, CBO estimates. As of early 2008,
approximately 25,000 to 30,000 employees of private security contractors were operating in Iraq. Those
contractors worked for the U.S. government, the Iraqi government, other contractors, and other
customers. [...]
- "Regarding the legal issues associated with contractor personnel, CBO finds that:
- Military commanders have less direct authority over the actions of contractor personnel than over their
military or civilian government subordinates. Contractors’ duties are set out in their contract, which is
managed by a government contracting officer, not the military commander.
- The legal status of contractor personnel in Iraq is uncertain, particularly for those who are armed.
Contractor personnel are potentially subject to a number of laws and jurisdictions...However, there have
been few tests in courts of how those laws apply to contractors. [...]
"From 2003 through 2007, U.S. government agencies obligated a total of $85 billion for contracts principally
performed in the Iraq theater, CBO estimates.
"In-theater support for operations in Iraq occurred in multiple countries, including $63 billion of obligations for
contracts principally performed in Iraq, $14 billion for contracts principally performed in Kuwait, and $8 billion for
contracts principally performed in other nearby countries.
"New obligations for contracts performed in the Iraq theater have totaled about $17 billion to $21 billion
annually since 2004.
"The $85 billion in obligations for contracts performed in the Iraq theater accounts for almost 20 percent of the
$446 billion of U.S. appropriations for activities in Iraq from 2003 through 2007 (CBO 2008, p. 7, converted to
2008 dollars).
"However, the $85 billion estimate does not capture the total share of U.S. spending on Iraq that goes to
contractors.
"CBO’s estimate excludes the costs of contracts supporting operations in Iraq that are performed in countries
outside the Iraq theater, including the United States (such as the manufacture of mine-resistant ambush-
protected vehicles, or MRAPs, and any of the other military equipment used in the Iraq theater)."
Like what you're reading so far? Then why not order a full year (52 issues) of the The American Spark e-
newsletter for only $15? A major article covering an story not being told in the Corporate Press will be
delivered to your email every Monday morning for a full year, for less than 30 cents an issue. Order Now!