Defense Contracting in Iraq: Issues and Options for Congress

This report will examine logistical support contracts for troop support services also known as service contracts in Iraq, primarily administered through the United States U.S. Armys Logistics Civil Augmentation Program LOGCAP. Four broad areas will be discussed, including 1 contract administration 2 contract costs, the development of contract requirements, and the use of no-bid, sole-source contracts, and costs-reimbursement contracts 3 transparency and 4 the acquisition workforce. The 110th Congress has announced plans to hold hearings on Iraq contracting activities. Congress is concerned over Iraq contracting for several reasons, including 1 logistical support contracts in Iraq are expensive and difficult to manage 2 many public agencies and private organizations cite instances of contract waste, fraud, abuse, and financial mismanagement and, 3 DOD has announced that it will replace the current LOGCAP III contract with new a LOGCAP IV contract, and competitively award the contract to multiple contractors. Many questions have been raised as to whether the sole-source contracts in Iraq were improperly awarded. Some have offered evidence to suggest that efforts may have been made to circumvent the DOD contracting regulations and guidance provided by professionally-trained, senior DOD contracting officials. Others note that the very nature of the types of contracts employed in Iraq, combined with the challenges in contract administration, serve as major factors which make contract administration difficult. Given the size and scope of the contracts in Iraq, and the challenge of managing billions of DOD-appropriated dollars, many have suggested it appropriate to inquire whether these types of contracts can be managed better.