Today the office of the Special Inspector General for Iraq Reconstruction (SIGIR) has released its latest quarterly report. Here is what happening with private contractors in Iraq.
As of April 3, 2012, the Department of State (DoS) reported that 12,755 personnel supported the U.S. Mission in Iraq, down about 8 percent from the previous quarter. Current staffing comprises 1,369 civilian government employees and 11,386 (U.S., local national, and third country national) contractors. (89 percent of the total).
Of these contractors, DoS estimated that about 2,950 provided security-related services for DoS sites, down more than 22 percent from last quarter (3,800).
In February, Deputy Secretary of State Thomas Nides said that DoS will continue to reduce the number of contractors over the coming months in an attempt to "right size" Embassy operations.
The Office of Security Cooperation-Iraq (OSC-I) manages U.S. security assistance to the Government of Iraq. OSC-I is staffed by 145 U.S. military personnel, nine Department of Defense (DoD) civilians, and 4,912 contractors.
But according to SIGIR, DoS tends to undercount the number of contractors working in Iraq. It found that:
In early April, DoS asserted that only 6 U.S. government employees and 48 contractors work on what it considers reconstruction programs. This total does not include any of the several hundred personnel working under the auspices of the PDP, [Police Development Program] which remains the single-most expensive ongoing initiative financed by DoS for the benefit of Iraq. Nor does it include any of the hundreds of employees and contractors supporting the missions of OSC-I and the U.S. Agency for International Development (USAID), though both agencies oversee projects paid for with U.S. reconstruction funds.
According to the Defense Department, if you include the OSC-I contractors, the total for private security contractors rises to 3,577.
The takeaway is that after all these years the U.S. government still has problems tracking the number of contractors working in Iraq. The SIGIR report found that:
While SPOT [Synchronized Predeployment and Operational Tracker database, administered by DoD] data provides SIGIR with a comprehensive view of contractor and grantee personnel in Iraq, significant apparent differences exist between agency-reported contractor numbers and SPOT data. For example, DoS reported to SIGIR that there were almost 11,400 contractors supporting Mission Iraq as of April 3, 2012, while SPOT data shows 5,172 working for DoS.276 In addition, USAID reported that 1,854 contractors are currently working on USAID projects in Iraq.277 However, SPOT data shows only 110 USAID contractor and grantee personnel in Iraq as of April 1, 2012. SIGIR intends to investigate these discrepancies and provide an update in the July 2012 Quarterly Report.
With regard to security contractors the Government of Iraq (GOI) announced in February that 124 private security firms were registered to work for foreign government entities and private firms engaged in activities in Iraq, but the GOI has taken steps to minimize the presence and scope of these firms. According to the GOI, the Security and Defense Committee of the Council of Representatives has drafted legislation to reduce the number of PSC firms working in Iraq from 124 to 63. Of the remaining firms, 15 to 20 would be foreign firms and the rest would be Iraqi.
On the fraud front, some of SIGIR's noteworthy investigations were:
Three former officers of a U.S. defense contractor, the wife of one of the officers, and four foreign nationals were indicted for their alleged roles in a fraud and moneylaundering scheme involving contracts for reconstruction projects in Iraq. The defendants were also are charged with an aggregate of 74 wire-fraud offenses.
A British citizen and his company were charged with conspiracy to defraud the United States and pay kickbacks in exchange for receiving more than $23 million in DoD subcontracts from April 2006 to August 2008. The British contractor allegedly paid more than $947,500 in unlawful kickbacks to two employees of a prime contractor to the U.S. government in order to obtain these subcontracts for work performed in support of the Coalition Munitions Clearance Program (CMCP).
David Welch, a former U.S. civilian contract employee, pled guilty to conspiring to steal 38 U.S. military generators and sell them on the Iraqi black market.
As of April 10, SIGIR is continuing to work on 110 open investigations.
There are a number of PSC firms working on the Police Development Program; especially in providing security at the Baghdad Police College Annex (BPAX). At BPAX, Triple Canopy, Inc., contractors provide protective details and escort PDP convoys. Torres Advanced Enterprise Solutions, LLC, provides perimeter security, with Iraqi Security Forces guarding the outer perimeter. EOD Technology, Inc., operates the counter-mortar and counterrocket system, and three U.S. military personnel are attached to the RSO explosive ordnance disposal unit. Another U.S. contractor provides a computer technician who manages the classified email system used by PDP personnel.