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Iraq Contractors Face Growing Parallel War
"When you see the number of my people who have been killed, the American public should recognize that every one of them represents an American soldier or Marine or sailor who didn't have to go in harm's way," Holly said in an interview.
According to the logistics directorate, attacks against registered supply convoys rose from 5.4 percent in 2005, to 9.1 percent in 2006, to 14.7 percent through May 10. The directorate has tracked 12,860 convoys, a fraction of the total number of private supply convoys on Iraqi roads.
"The military are very conscious that we're in their battle space," said Cameron Simpson, country operations manager for ArmorGroup International, a British firm that protects 32 percent of all nonmilitary supply convoys in Iraq. "We would never launch into an offensive operation, but when you're co-located, you're all one team, really."
ArmorGroup, which started in Iraq with 20 employees and a handful of SUVs, has grown to a force of 1,200 -- the equivalent of nearly two battalions -- with 240 armored trucks; nearly half of the publicly traded company's $273.5 million in revenue last year came from Iraq. Globally, ArmorGroup employs 9,000 people in 38 countries.
The company, with headquarters at a complex of sandstone villas near Baghdad's Green Zone, is acquiring a fleet of $200,000 tactical armored vehicles equipped with two gun hatches and able to withstand armor-piercing bullets and some of the largest roadside bombs.
The U.S. Labor Department reported that ArmorGroup has lost 26 employees in Iraq, based on insurance claims. Sources close to the company said the figure is nearly 30. Only three countries in the 25-nation coalition -- the United States, Britain and Italy -- have sustained more combat-related deaths.
A Turning Point
In spring 2004, Holly built the logistics network for Iraq's reconstruction from scratch. The network delivered 31,100 vehicles, 451,000 weapons and 410 million rounds of ammunition to the new Iraqi security forces, and items as varied as computers, baby incubators, school desks and mattresses for every Iraqi government ministry. The network came to rival the military's own logistics operation.
Holly also discovered he was at the center of an undeclared war.
He assembled a small private army to protect materiel as it flowed from border crossings and a southern port at Umm Qasr to the 650,000-square-foot warehouse complex at Abu Ghraib and on to its final destination.
"The only way anything gets to you here is if somebody bets their life on its delivery," said Holly, a burly civilian with a trimmed gray beard who strikes a commanding presence even in khakis, multicolored checked shirts and tennis shoes. "That's the fundamental issue: Nothing moves anywhere in Iraq without betting your life."
The most dangerous link in Holly's supply chain is shipping. It requires the slow-moving convoys to navigate Iraq's dangerous roads. Holly erected a ground-traffic control center in a low-slung trailer near his office in Baghdad's Green Zone. The security companies monitor their convoys in air-conditioned silence, which is shattered by a jarring klaxon each time a contractor pushes a dashboard "panic button," signaling a possible attack.
On May 8, 2005, after dropping off a load that included T-shirts, plastic whistles and 250,000 rounds of ammunition for Iraqi police, one of Holly's convoys was attacked. Of 20 security contractors and truck drivers, 13 were killed or listed as missing; five of the seven survivors were wounded. Insurgents booby-trapped four of the bodies. To eliminate the threat, a military recovery team fired a tank round into a pile of corpses, according to an after-action report.