By ANNE PLUMMER FLAHERTY
The Associated Press
Tuesday, December 19, 2006; 5:54 PM
WASHINGTON -- The Pentagon is still struggling to get a handle on the unprecedented number of contractors now helping run the nation's wars, losing millions of dollars because it is unable to monitor industry workers stationed in far-flung locations, according to a congressional report.
The investigation by the Government Accountability Office, which released the report Tuesday, found that the Defense Department's inability to manage contractors effectively has hurt military operations and unit morale and cost the Pentagon money.
"With limited visibility over contractors, military commanders and other senior leaders cannot develop a complete picture of the extent to which they rely on contractors as an asset to support their operations," said the GAO, the investigative arm of Congress.
According to the report, some 60,000 contractors are supporting the Army in Southwest Asia, a region that includes Iraq. That figure is compared to the 9,200 contractors used to support the military in the 1991 Persian Gulf War.
This unprecedented number of contractors on the battlefield means loss of visibility, GAO reports.
Commanders are often unsure how many contractors use their bases and require food, housing and protection, according to the report. One Army official said the service estimates losing about $43 million each year on free meals provided to contractors who also receive a food allowance.
The military does not have enough personnel devoted to overseeing the implementation of contracts, GAO found. In one case, a single person was assigned to monitor compliance of a contract at 27 different installations throughout Iraq in just a six-month tour.
In response to the report, the Pentagon said it agreed with the GAO's findings that the military implement a database of contractors and appoint a senior-level office dedicated to improving contractor management.
Contractors are used in battle zones to do nearly everything but fight. They run cafeterias and laundries for troops, transport supplies, run communication systems and fix weapon systems. Outsourcing such tasks has been seen as much more efficient, leaving troops trained in combat to the business of war.
But since the war in Iraq began in spring 2003, battlefield contractors also have become associated with allegations of fraud and abuse. A special inspector general office focused solely on reconstruction spending in Iraq has prompted four criminal convictions.
Democrats say they plan next year to ramp up oversight of the billions of dollars being spent in Iraq, including dollars awarded to contractors.
Rep. Ike Skelton, D-Mo., the incoming chairman of the House Armed Services Committee, said he plans to establish a subcommittee to conduct thorough investigations, including one on contractor abuse.