The Army just confirmed what everybody knew

An Army undersecretary testified September 2006 that Blackwater did not provide protective services to Halliburton or KBR. Well, everyone pretty much knew the name Blackwater and their role after four of their guys were massacred in Fallujah in 2004 in an event that possibly changed the personality of the conflict (see Pelton’s Licensed to Kill for an excellent forensic analysis of what happened; Thomas Ricks’ Fiasco sheds additional light on the impact of the response).

Well, now the Army finally figured out that yes indeed Blackwater was subcontracted to provide security.

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Blackwater and Christmas Eve

I recommend reading David Phinney’s blog because I’m betting he’s going to have some juicy stuff appearing in the near future as hearings on PMCs in Iraq kick off later this week.

If you’re interested in the Christmas Eve shooting, I made a brief and quiet mention of it in my commentary on the UCMJ changes January 3rd:

It is folly to say the reason contractors haven’t been prosecuted for things ranging from the so-called ‘Aegis Trophy Video’ to [a] possibly killing an Iraqi Presidential Guard in the International Zone on Christmas Eve is because Iraq is a “contingency operation.”

Just a note on this, my sources gave me some good information before then, which I followed up on, including with a query to CENTCOM via phone and email. At first CENTCOM thought it was non-sense but when I provided some additional detail their public affairs liaison stopped responding to my email. This and others will be interesting test cases indeed.

Posing the question: Is the SysAdmin Constitutional?

Dan of tdaxp reframed a question of legitimacy of the Marines the Volokh Conspiracy posed last week. Volokh suggested that since the Marine Corps “is more like armies” that perhaps it should be treated as the US Constitution treats the US Army and thus not considered an element of the US Navy. Dan extends this to question whether the Tom Barnett’s SysAdmin theory is then unconstitutional. I felt it was necessary to respond with history and facts.

I had originally posted what was surely a brilliant response in Dan’s comments, only to have it lost to cyberspace. Thinking again about this, I decided to post the response here because there are other more important areas that should be probed when discussing the answer to V & D’s questions. Be warned, this is a long post.

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TV: DHS and Contractors

Armchair Generalists commentary on Michael Chertoff recent statement reminded me of a recently rebroadcast episode of Numb3rs. In this episode, a DHS chief is running scripted large counterterrorism drills in Los Angeles but a drill is infiltrated and the drill’s “cast” are gassed (non-lethal) to prove a point. The chief is adamant about continuing, saying similar things as Chertoff. Ultimately, the guys pulling off the attacks (there are other incidents) are former US SF tiger teams with a vendetta against the chief. Why? Because the chief was a contractor in Iraq in charge of base security, which was also penetrated and SF lives were lost as a result.

Nice commentary on both DHS “posturing” and contractors in one episode.

Two GAO Reports of interest released today

Briefly, two interesting reports were issued today by the General Accountability Office (GAO). The first is on rebuilding Iraq (and thus related to counterinsurgency) and the other on DoD outsourcing (and thus privatization of force). I’m going through them now and may comment on them here later.

In assessing acquisition outcomes, we found that DOD often entered into contract arrangements with unclear requirements, which posed additional risks to the government. DOD also lacked the capacity to provide sufficient numbers of contracting, logistics, and other personnel, thereby hindering oversight efforts.

Numerous persistent problems have resulted in reduced efficiencies and effectiveness and have exposed DOD to unnecessary risks when acquiring services. Knowing the defense acquisition landscape helps put the magnitude of these problems in perspective—

• DOD’s obligations on service contracts have jumped from $82.3 billion in fiscal year 1996 to $141.2 billion in fiscal year 2005.

• DOD’s acquisition workforce has been downsized during this time frame without sufficient attention to requisite skills and competencies.

These events have occurred as DOD has become more reliant on contractors to provide services for DOD’s operations and as longstanding problems with contract management continue to adversely impact service acquisition outcomes. The lack of sound business practices—poorly defined requirements, inadequate competition, inadequate monitoring of contractor performance, and inappropriate uses of other agencies’ contracts and contracting services—exposes DOD to unnecessary risk and wastes resources. Moreover, DOD’s current management structure to oversee service acquisition outcomes has tended to be reactive and its processes suffer from the absence of several key elements at both a strategic and transactional level.

To produce desired outcomes, DOD and its contractors need to clearly understand acquisition objectives and how they translate into a contract’s terms and conditions. GAO has found cases in which the absence of well-defined requirements and clearly understood objectives complicates efforts to hold DOD and contractors accountable for poor service acquisition outcomes. Likewise, obtaining reasonable prices depends on the benefits of a competitive environment, but we have continually reported on cases in which DOD sacrificed competition for the sake of expediency. Monitoring contractor performance to ensure DOD receives and pays for required services is another control we have found lacking. Many of these problems show up in DOD’s use of other agencies’ contracts or contracting services, which adds complexity as the number of parties in the contracting process increases.

DOD has taken some steps to improve its management of services acquisition, and it is developing an integrated assessment of how best to acquire services. DOD leadership will be critical for translating this assessment into policy and, most importantly, effective frontline practices. At this point, however, DOD does not know how well its services acquisition processes are working, which part of its mission can best be met through buying services, and whether it is obtaining the services it needs while protecting DOD’s and the taxpayer’s interests.

Forecasting the private security industry

As Bush, as well as the Pentagon, reverses some of the former SecDef Rumsfeld’s plans for the military, what will happen with what has become routinized outsourcing of shooters? Based on the President’s response to a question on private military companies in April 2006 and declaring changes to the military in his mea culpa last night that completely go against Rumsfeld’s vision (upsizing the force, so-called “nation-building”, and basic understanding and requirement of counterinsurgency), something should change with regards to the ad hoc, loosely monitored, possibly illegal, and maybe nothing more than ghost and rumor:

Tina Ballard, an undersecretary of the Army, testified in September that the Army had never authorized Halliburton or its subcontractors to carry weapons or guard convoys. Ballard testified that Blackwater provided no services for Halliburton or its subcontractors.

Not too surprisingly, President Bush did not mention the contractors in Iraq. It’s too much like a line item issue, politically hot, and unnecessary to bring into the discussion from the Administration’s point of view. However, I suspect that without Rumsfeld, along with a Congress that’s getting its balls back and looks to see to its responsibility of military oversight.

In 1812, both were in short supply when the US went to war against Britain. With a navy outnumbered by almost 10 to 1, Congress granted the President the authority to “issue to private armed vessels of the United States commissions or letters of marquee and general reprisal, in such form as he shall think proper, and under the seal of the United States.” Congress, in granting the President this authority, gave specific instructions on compensation and, more importantly, monitored the privateers as Congress was keenly aware of the impact on public diplomacy and foreign policy these raiders would have. We need to have this participation and awareness today to return to a democratic use of force.

Between the oversight Congress may reclaim, reactions to contract abuse, the further erosion of the “surge” argument, smart counterinsurgency taking root, and other “distasteful”, in the mind of the former SecDef, things, I would be surprised that the next go ’round we have the same heavy reliance on contractors, but I don’t think we’ll see a wholesale cut back in Iraq now. While some contractors have expressed joy with the President’s speech, hopeful for more contracts, I doubt these will materialize. But that will be the test, won’t it?

Flash: Private Security Contractors are now culpable for their actions

From P.W. Singer, writing at DefenseTech:

Amidst all the add-ins, pork spending, and excitement of the budget process, it has now come out that a tiny clause was slipped into the Pentagon’s fiscal year 2007 budget legislation. The one sentence section (number 552 of a total 3510 sections) states that “Paragraph (10) of section 802(a) of title 10, United States Code (article 2(a) of the Uniform Code of Military Justice), is amended by striking `war’ and inserting `declared war or a contingency operation’.” The measure passed without much notice or any debate. And then, as they might sing on School House Rock, that bill became a law (P.L.109-364).

I’m amazed at Singer’s hyping of these five little words. It is folly to say the reason contractors haven’t been prosecuted for things ranging from the so-called ‘Aegis Trophy Video’ to possibly killing an Iraqi Presidential Guard in the International Zone on Christmas Eve is because Iraq is a “contingency operation.” Seriously.

Let’s look at the Aegis video. After the video broke, there was an investigation that resulted in a lengthy document, half of which was an appendices. The Pentagon declared Aegis to be off the hook. FOIA requests for the document went no where because the document belonged to the contractor, a private enterprise, and not the government. Going to Aegis was a dead-end as Aegis claimed it was proprietary knowledge and wasn’t about it share it. Despite claims no one knew who was in the car, the South Africans, who have tough (and constantly revised and updated) anti-mercenary laws, know how to find out who was in the car and arrested one of the two back seaters who was SA (all Aegis personnel have GPS locators… for example of a competitor system, check out Track24).

Ok, so the Pentagon says “there’s nothing wrong” without UCMJ coverage, you think they’ll change their tune when there is? They already have a more powerful coercive mechanism available they could use if they cared: money.

Singer hits the fault of the logic when he cites the incredible (obtuse? ignorant?) testimony of the Under Secretary of the Army who said “contractors? I don’t see no stinking contractors” (or something similar, I may be paraphrasing here).

There is no gap in the law because there will always be a gap in the law. Look at the application of the UCMJ at Abu Gharib. 

Contractors aren’t held to account (neither are military officers for that matter if want to consider effective and intelligence counter-insurgency… and hey let’s consider the complete abdication of common sense in the CPA while we’re at it…) because of political reasons, which is the whole reason they are there to begin with.

Why were 20,000 contractors serving in Iraq when President Bush donned his flight suit? Because upsizing the force to provide necessary person, convoy, and site protection was politically unattractive, so let’s hire handsome guards to protect the Viceroy (yes, they were screened for their looks) & shooters for the truckers.

It’s about politics. If there is one more prosecution in Iraq of a contractor (which according to Viceroy Bremer’s Order 17, yet to be overturned, is a protected class, immune from Iraqi law), that will be, what, a 100% increase over the duration of the 3+ “contingency operation”. Or is 3yrs of “contingency operations” and a only a few months of “war”?

Private Domestic Security Companies

The conference I reviewed last week, Understanding the Privatization of National Security, had little to say on the domestic realm of private security, save Katrina-like responses. However, in the Washington Post today is an article by Amy Goldstein on privatization of municipal police services.

Just as the federal government outsources national security, cities are turning toward the private sector claiming to be short of financial capital to pay for the security. The reality is one of political choice and a failure to address endemic problems.

Questions: Is it right to privatize police services? What will the impact be on “traditional” police and investigative services?

The disdain serving military have for private military is nothing compared to that of law enforcement organizations (LEOs) and “mall cops”. One thing the private military guys have going for them? Envy from the public military, partly due to pay differentials and partly due to flexibility, creates a different sort of relationship. In a war zone when the military is the law, it is easier for blue on blue conflicts to happen, like the Marines taking down Zapata (thinking they were Cochise) (and more here).

Of course all isn’t roses for private military — medical evac problems, insurance, support problems, honors, etc. — but its better than for private police. Doubtful we’ll have a Zapata-like incident in the US because of all the oversight agencies and groups, but without bright lines of jurisdiction, communication, and accountability, is it worth it to use private law enforcement officers that get to skip the police academy and time with their training officer?

With the sleeve patch on his black shirt, the 9mm gun on his hip and the blue light on his patrol car, he looked like an ordinary police officer as he stopped the car on a Friday night last month. Watt works, though, for a business called Capitol Special Police. It is one of dozens of private security companies given police powers by the state of North Carolina — and part of a pattern across the United States in which public safety is shifting into private hands.

Private firms with outright police powers have been proliferating in some places — and trying to expand their terrain. The “company police agencies,” as businesses such as Capitol Special Police are called here, are lobbying the state legislature to broaden their jurisdiction, currently limited to the private property of those who hire them, to adjacent streets. Elsewhere — including wealthy gated communities in South Florida and the Tri-Rail commuter trains between Miami and West Palm Beach — private security patrols without police authority carry weapons, sometimes dress like SWAT teams and make citizen’s arrests.

Private security guards have outnumbered police officers since the 1980s, predating the heightened concern about security brought on by the Sept. 11, 2001, attacks. What is new is that police forces, including the Durham Police Department here in North Carolina’s Research Triangle, are increasingly turning to private companies for help. Moreover, private-sector security is expanding into spheres — complex criminal investigations and patrols of downtown districts and residential neighborhoods — that used to be the province of law enforcement agencies alone.

The more than 1 million contract security officers, and an equal number of guards estimated to work directly for U.S. corporations, dwarf the nearly 700,000 sworn law enforcement officers in the United States. The enormous Wackenhut Corp. guards the Liberty Bell in Philadelphia and screens visitors to the Statue of Liberty.

“You can see the public police becoming like the public health system,” said Thomas M. Seamon, a former deputy police commissioner for Philadelphia who is president of Hallcrest Systems Inc., a leading security consultant. “It’s basically, the government provides a certain base level. If you want more than that, you pay for it yourself.”

The trend is triggering debate over whether the privatization of public safety is wise. Some police and many security officials say communities benefit from the extra eyes and ears. Yet civil libertarians, academics, tenants rights organizations and even a trade group that represents the nation’s large security firms say some private security officers are not adequately trained or regulated. Ten states in the South and West do not regulate them at all.

Some warn, too, that the constitutional safeguards that cover police questioning and searches do not apply in the private sector. In Boston, tenants groups have complained that “special police,” hired by property managers to keep low-income apartment complexes orderly, were overstepping their bounds, arresting young men who lived there for trespassing.

“There is a limit to the amount of law enforcement you can expect taxpayers to support,” said Ron Hodge, Durham’s deputy police chief, who said some of his requests for additional officers have been turned down in recent years. Although, as in most cities, some Durham police work privately while they are off-duty, Hodge said the demand for off-duty police outstrips the supply.

Some of the most sophisticated private security operations have expanded in part because of shrinking local and federal resources. The nation’s largest bank, Bank of America, hired Chris Swecker as its corporate security executive last year when he retired as assistant director of the FBI. Even as identity theft and other fraud schemes have been booming, Swecker said, fewer federal investigators are devoted to solving such crimes, and many U.S. attorney’s offices will not prosecute them unless their value reaches $100,000.

Conference review: “Understanding the Privatization of National Security”

Earlier this year, the McCormick Tribune Foundation sponsored the conference “Understanding the Privatization of National Security.” Held in Illinois, May 11-12, 2006, it was a discussion between “forty distinguished legal scholars, first responders, military personnel and other representatives of the private and government sectors.” I’ve been reading through the hard copy of the conference report (soft copy available here) thought I’d post some of my observations and thoughts.

I would have liked to be at the conference as I’m sure the report leaves out what I’d consider useful and interesting discussion points. However, the report still gives some insight into some of the thinking on the business of privatizing security.

The focus of the conference was on domestic privatization, but US use beyond the borders was heavily discussed.

In the first chapter of the report, Factors Driving Privatization, a discussion on the changing nature of war brought out the argument of how PMCs (private military contractors, not companies, in this report) are better suited to an environment “where you see crime and war blurred.” I’m interested in hearing their justification on how PMCs are better as I suspect the basis for this statement stems from convoluted and selective take on reality. I’ll get back to this below.

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The inevitable happened: “Security Contractors” break a man out of an Iraqi jail… and a GAO report is released

From the Los Angeles Times today:

A once-prominent Iraqi American, jailed on corruption charges, was sprung from a Green Zone prison this weekend by U.S. security contractors he had hired, several Iraqi officials said.

Ayham Sameraei, a Chicago-area businessman, returned to Iraq after the 2003 U.S.-led invasion and assumed the position of electricity minister during the interim government of former Prime Minister Iyad Allawi….

Neither the security contractors nor their company was named by Iraqi officials Monday….

There have been no suggestions that American officials had a role in Sameraei’s escape Sunday afternoon. But the B-movie scenario of a rich businessman hiring armed muscle to bust himself out of jail from inside the fortress-like, U.S.-protected enclave could further contribute to Iraq’s image of instability and lawlessness. The flamboyant former government minister’s arrest and prosecution were held up by Iraqi and U.S. officials as a rare example of good government prevailing in the new Iraq.

His high-profile escape, splashed across Iraqi television channels Monday night, also could further damage the reputation of the U.S., which is already believed by many Iraqis to have wasted and stolen billions of dollars in Iraqi revenue.

Iraqi officials were enraged by his escape and the suggestion that any Americans had a hand in it.

This should not surprise anyone, even private military companies. It will be interesting to learn if the individuals were working on a behalf of a company contracted by Sameraei or if this was an ad hoc arrangement of freelancing individuals. Even if it was by a company that was under some contract (likely a subcontract off a subcontract… or further removed), the chance of sanctions by the US Government (USG) are slim.

DefenseTech quotes P.W. Singer, author of the default book on private military firms, Corporate Warriors, on the failure of the USG to hold contractors accountable to any standard:

So the Great Private Military Escape joins the lengthy list vying to be made into a bad Hollywood movie (sorry, Blood Diamonds). My other favorites include the Triple Canopy lawsuit which alleges that a company supervisor told his employees that he had “never shot anyone with my handgun before” and then fired his handgun through the windshield of a parked taxi, killing the driver; the Aegis “trophy video,” in which employees posted footage on the web of shooting at Iraqi cars on the web, set to Elvis music; the Donald Vance case, in which a US contractor was held 97 days without charges in a US military prison; the various Blackwater episodes, ranging from the 4 guys sent to Fallujah without maps, intell, or proper equipment, to the plane crash in Afghanistan, in which the plane lacked basic safety equipment and didn’t even follow basic flight safety procedures, flying by guesswork into a box canyon, killing 3 civilians and 3 US Army; and of course don’t forget the wonderfully named Custer Battles charging for all sorts of fraud at Baghdad airport, such as a bomb-sniffing dog that in the words of a US Army colonel turned out to be “a guy with his pet.”

At what point do we accept that this whole situation has gone well beyond the original idea of privatization and start to rein it in? Then again, the Army Under Secretary testified to Congress 2 months back that the Army had never authorized Halliburton or its subcontractors to carry weapons or guard convoys, denying we even had firms handling these jobs. So, I guess its like the end of Dallas, where the whole private military industry in Iraq (estimated by Centcom to be 100,000) was “just a dream.”

Two things. The first is we don’t know if these guys were freelancing or corporate, which will make a difference. Second, this really isn’t earth shattering behavior. It’s new, but not unusual or unexpected. Private military enterprises eventually began to interfere with states, especially their home state, at times becoming antagonistic. One example is the United East India Company. This PMC (private mercantile company) was granted the right to “make war, conclude treaties, acquire territories and build fortresses”. Emboldened by its own success, it sought to sell territory to enemies of its home country, the United Provinces (the Netherlands today). In another example, the British East India Company, using the Crown’s military that was licensed to it along with other private resources actually demanded the land from the Royal Navy.

So far, busting a guy out of jail doesn’t seem so bad. It’s terrible public relations and it is yet another jab in the eye of the Iraqis (i.e. bad public diplomacy), as the LA Times commendably picks up on.

Now if he had been held in a US military jail and not an Iraqi police jail, this wouldn’t have happened. Not because of increased security and bureaucracy but because of respect.

It should be interesting how this plays out. As of the time I’m posting this, there’s nothing but the LAT article on GoogleNews, nothing on CNN, FoxNews, or BBC News.

However, there is something timely: a new GAO report on contractors, titled Military Operations: High-Level DOD Action Needed to Address Long-standing Problems with Management and Oversight of Contractors Supporting Deployed Forces (GAO-07-145). The executive summary is worth posting, with my highlights:

Prior GAO reports have identified problems with the Department of Defense’s (DOD) management and oversight of contractors supporting deployed forces. GAO issued its first comprehensive report examining these problems in June 2003. Because of the broad congressional interest in U.S. military operations in Iraq and DOD’s increasing use of contractors to support U.S. forces in Iraq, GAO initiated this follow-on review under the Comptroller General’s statutory authority. Specifically, GAO’s objective was to determine the extent to which DOD has improved its management and oversight of contractors supporting deployed forces since our 2003 report. GAO reviewed DOD policies and interviewed military and contractor officials both at deployed locations and in the United States. DOD continues to face long-standing problems that hinder its management and oversight of contractors at deployed locations. DOD has taken some steps to improve its guidance on the use of contractors to support deployed forces, addressing some of the problems GAO has raised since the mid-1990s. However, while the Office of the Secretary of Defense is responsible for monitoring and managing the implementation of this guidance, it has not allocated the organizational resources and accountability to focus on issues regarding contractor support to deployed forces. Also, while DOD’s new guidance is a noteworthy step, a number of problems we have previously reported on continue to pose difficulties for military personnel in deployed locations. For example, DOD continues to have limited visibility over contractors because information on the number of contractors at deployed locations or the services they provide is not aggregated by any organization within DOD or its components. As a result, senior leaders and military commanders cannot develop a complete picture of the extent to which they rely on contractors to support their operations. For example, when Multi-National Force-Iraq began to develop a base consolidation plan, officials were unable to determine how many contractors were deployed to bases in Iraq. They therefore ran the risk of over-building or under-building the capacity of the consolidated bases. DOD continues to not have adequate contractor oversight personnel at deployed locations, precluding its ability to obtain reasonable assurance that contractors are meeting contract requirements efficiently and effectively at each location where work is being performed. While a lack of adequate contract oversight personnel is a DOD-wide problem, lacking adequate personnel in more demanding contracting environments in deployed locations presents unique difficulties. Despite facing many of the same difficulties managing and overseeing contractors in Iraq that it faced in previous military operations, we found no organization within DOD or its components responsible for developing procedures to systematically collect and share its institutional knowledge using contractors to support deployed forces. As a result, as new units deploy to Iraq, they run the risk of repeating past mistakes and being unable to build on the efficiencies others have developed during past operations that involved contractor support. Military personnel continue to receive limited or no training on the use of contractors as part of their pre-deployment training or professional military education. The lack of training hinders the ability of military commanders to adequately plan for the use of contractor support and inhibits the ability of contract oversight personnel to manage and oversee contractors in deployed locations. Despite DOD’s concurrence with our previous recommendations to improve such training, we found no standard to ensure information about contractor support is incorporated in pre-deployment training.

Fun stuff.

See other posts on PMCs on MountainRunner here that relate to Singer’s comments, like the lawsuit against Custer Battles.

LOGCAP, Halliburton and working on saving the gov’t money? Not exactly…

David Phinney has an interesting post on a Blanket Insurance Waiver for Iraq reconstruction:

I have a curious memo, “Blanket Insurance Waiver,” which apparently allows Halliburton/KBR to waive insurance requirements — read cut the “costs” — to potential subcontractors working under Halliburton’s sweeping military logistics contract, known as LOGCAP.

It was approved November 26, 2002, by four top-level KRR managers. It apparently grants sweeping discretion to KBR contract officers in the field, i.e., Iraq, to disregard Defense Base Act insurance requirements when subcontractors claim they can’t find a suitable insurance carrier.

One contracting insider believes that KBR’s contracting officers routinely used the waiver to help non-US businesses land multi-million-dollar contracts under the logistics deal.

This insider notes that because insurance coverage for workers is mandatory on Pentagon contracts, the waiver grants great liberties to a contracting officer who waives the requirement.

“In 2004-2005, coverage was running from $27 to $35 per $100 of wages. Essentially, providing a waiver to foreign firms gives them an automatic 27-35% price advantage on Labor Contracts over honest American entities,” the insider says.

A prominent attorney working on Iraq contract fraud tells me that this memorandum may be cause for crying foul on every contract that received the waiver.

“There is a potential False Claims Act claim here. It’s would be a little difficult to pin down the Government’s damages, but clearly, if KBR must require subcontractors to obtain insurance, and it’s not doing so, then every invoice certifying contract compliance is a false claim.” (See qualifying analysis below.)

Another prominent government attorney tells me he’s not so sure, but regardless of the blanket legal interpretations, allowing a private contract officer the personal discretion to waive insurance requirements opens the door to some handy favoritism that could potentially be rewarded with generous kickbacks.

That’s one reason why numerous sources tell me the special inspector general charged with investigating Iraq contracting is looking hard at the hidden layers of subcontractors working underneath Halliburton/KBR.

Halliburton/KBR has now billed $16 billion since the war on terror began largely from its business in coordinating camp construction and maintenance, food services and supply convoys in Iraq and Afghanistan. (That’s my rough estimate on the Pentagon’s tab.)

Much of that work has been handed out to subcontractors, while KBR tacks on a percentage surcharge for awarding and coordinating the contracts. (Imagine a pyramid of contractors with Houston-based KBR sitting at the top.)

The four KBR managers who signed the memo are:
— Tod E. Nickels, senior procurement and materials manager
— John Downey, project general manager (LOGCAP) project
— Bob Herndon, vice president, operations maintenance and logistics
— Tom Crum, chief operating officer.

David’s post includes, besides the above, a response from an attorney regarding the waiver that’s worth reading. The plot thickens on the fiasco known as reconstruction that contributed more to the insurgency than most have yet to acknowledge.

Counting the Contractors in Iraq

From the Washington Post comes news that will, or should, dominate the discourse over Iraq for a few days: a CENTCOM census counted “about 100,000” contractors in Iraq. This is up from an estimated 87,000 a few months ago, but this be partially explained by better surveying.

In comparison, there are around 140,000 US troops, and of course very few Coalition troops, save 6,000 +/- UK troops, in Iraq now. Here’s the contractor breakdown WaPo gives:

  • DynCorp International: 1,500 (700 training police)
  • Blackwater USA: 1,000+ (most as security contractors)
  • KBR: 50,000 across Iraq, Afghanistan and Kuwait, although there may be some doublecounting as they won’t give breakdowns.
  • MPRI (part of L-3 Communications, NYSE: LLL) , has about 500 employees
  • Titan, another L-3 division, has 6,500 linguists in the country.

There are four aspects to this story, two of which are briefly mentioned.

The first is this quote from William Nash of the CFR:

“It takes a great deal of vigilance on the part of the military commander to ensure contractor compliance. If you’re trying to win hearts and minds and the contractor is driving 90 miles per hour through the streets and running over kids, that’s not helping the image of the American army. The Iraqis aren’t going to distinguish between a contractor and a soldier.”

The impact of driving techniques was “addressed” months ago in Afghanistan. More importantly, while we consider the contractors to be less than agents of the US (they are contractors, not American military personnel), locals don’t, as Nash states, see a difference, regardless of nationality of the contractor.

The lack of a strategic vision in Iraq is emphasized by this report. Our frequently ad hoc assemblage of “gap” solutions has resulted in a force not just a few times larger than our nearest Coalition partner, but nearly twenty times.

Interviewing Robert Young Pelton, one here’s numbers upward of 140,000 contractors in Iraq: around 70,000 known plus one unknown for each known.

The second point is the next, and last, paragraph in the article:

The census gives military commanders insight into the contractors operating in their region and the type of work they are doing, [Lt. Col. Julie Wittkoff, chief of the contracting branch at Central Command]said. “It helps the combatant commanders have a better idea of . . . food and medical requirements they may need to provide to support the contractors,” she said.

This is a minor point, but points out the reader the 100,000 +/- contractors are far from an absolute number. There are support services provided by the military (at a cost to the military… i.e. the contractors are not self-contained), there are support personnel the contractors bring to the country that are not yet counted, and there little other “insight into the contractors operating” in the military’s operating areas.

There are multiple levels of control and accountability, not just criminal, that this article only hints at and I’m sure other Post and NYT authors will start to catch on to.

The third aspect of this story, completely absent, is who pays for the contractors. With most of the security contractors under subcontract, awareness and control become increasingly unclear. The impact contractors have on our mission ranges from the daily drives to the guys taken down in Fallujah in 2004 that, as Thomas Ricks points out, weren’t aware of changing conditions and tactics.

But who pays for the contractors? Department of State? Department of Defense? Department of the Interior? All of it from budgets controlled by the executive branch, but funded by Congress? The Custer Battles trial showed that some monies were effectively “hidden” through the now defunct Coalition Provisional Authority, to what affect?

One of the arguments in favor of contractors is the bang for the buck. How many bucks for what kind of bang is impossible to measure without transparency.

The fourth issue is the most important and completely ignored in the article: the complete absence of these numbers being represented in either General Pace’s or Jim Baker’s study groups. Besides the expected virtual acknowledgement that we can’t go to our allies for help, our paid friends in the country are ignored.

More importantly, we apparently have 100,000 additional forces (not all are shooters) supplementing our mission in Iraq, but coordination is poor and the fact we are just getting a handle on them indicates an incredible lack of strategic vision. But that’s no surprise. These contractors could be helping us, if it weren’t for reconstruction failures and their held to a larger strategic task beyond getting from Point A to B and protecting each of those points.

Last point to reiterate the control and accountability issue. American democracy relies, in part, on a democratic control of force. The Founding Fathers were intimately aware of the power of the military and gave us a Constitution that created a shared control of the armed forces between two masters, the legislative and the executive branches of government. Congress was empowered to “raise and support” the armed forces of the new nation and given the power “To declare War,” and the President was given the power to conduct the war. Further, of the 18 Congressional powers enumerated in the US Constitution 11 relate to security. (for more on this part, see Charlie Stevenson’s book) The contractors in Iraq are generally, if not completely, outside the control and oversight of Congress. This “private army” of the executive branch isn’t held to the same two-master standard as the military. Hence recent GAO and CRS reports on contractors.

There’s more to this issue than the numbers, although they indicate a problem more significant and severe than most are aware.

Book Review: The Abolition of Privateering and the Declaration of Paris

Written in 1897, The Abolition of Privateering and the Declaration of Paris is a superb resource when looking at the use of non-state forces by the state. Put simply, this provides period knowledge and perspective that is not available in later works.

More important is the information on the broad use, impact, and deep understanding of privatization by the nascent American government during the Revolution and the War of 1812, for example. During the Revolution, many towns came to depend on income from their privateers, such as Salem, Massachusetts. Their roving tactics that took them along the European and British coasts produced public diplomacy backlashes as they “came to be liked as little as their brethren of England.”

In 1812, when both political and financial capital were in short supply and with a navy outnumbered by almost 10 to 1, Congress granted the President the authority to “issue to private armed vessels of the United States commissions or letters of marquee and general reprisal, in such form as he shall think proper, and under the seal of the United States.” Congress, in granting the President this authority, gave specific instructions on compensation and, more importantly, monitoring the privateers as they were keenly aware of the impact on public diplomacy and foreign policy these raiders have.

In both cases, Congress made it clear that it would not and did not cede responsibility for war when they authorized the President to hire private vessels, and compensate them as privateers, but placed clear parameters on pay and, more importantly, monitoring.

This book is a hidden gem and is a font information on how privatization then is different than now. Further, it contributes to an understanding of why privatization went by the wayside.

This is on Mountainrunner’s recommended reading list for privatizing war and a worthwhile purchase.

The big assumption: numbers equal effect

As the White House struggles with what to do next, the military maneuvers to cover its ass, and Congress debates on how to proceed, the central element throughout all these discussions is the number of troops in theater. Do we go “big” and throw more troops or do we cut and run? What course we choose is dependent on the number of troops we commit.

There are two fallacies embedded in framing the discussion as a numbers game. The first is assuming quantity is more important than quality. The second is the absence of our supplemental forces already operating in the theater who, if counted as a single entity, would be our largest “partner” in the Coalition. Soon after President Bush landed on an aircraft carrier and declared “Mission Accomplished”, the number of private security contractors in Iraq was pushing 20,000. Two years later, this number would balloon to over 50,000 (this may actually be half of the actual figure) with American and British contractors dropping to less than 10,000 in favor of cheaper “third country nationals” (predominately Latin American and African contractors) and “host country nationals” (Iraqis). When the President’s Coalition of the Willing was at its strongest, there were more than twice as many private security contractors operating in Iraq as the second largest member of the Coalition, leading some to suggest it was really a Coalition of the Billing.

So why don’t we consider the additional tens of thousands contractors that could be brought back over to provide site, transport, and sector security? Because it makes for a messy world of friction, oversight, integration, and accountability. We need to remember the latest incarnation of the Marine Corps’ Countering Irregular Threats intentionally ignored the role of “guns with legs” because it was too complex an issue to deal with.

Going back to the first point, quantity versus quality, includes the contractor question and more. Movies like Gunner Palace, books like Fiasco, Countering Insurgency in Iraq all document a wildly varied appreciation of counter-insurgency and even the need to practice it at all. This blog has raised the negative impacts of Haditha (done by the military) reconstruction failures (done by contractors), all of which are completely ignored in practice. When CENTCOM looks at Thomas Friedman as their COIN expert, we’re in trouble.

John Nagl, David Galula, Mao, Thucydides, and others should be required reading to appreciate the value of SWET. Instead of debating numbers, we should be discussing how the tactics have failed and how this will prevent the Iraq government from fulfilling the mandate we’ve given it.

We can’t win unless the population believes we will deliver a solution. Military forces and contractors, armed and not, must be under a strategic direction to start conducting real counter-insurgency operations and public diplomacy operations to rebuild trust with the populations. It may be too late, afterall we spent the last three plus years creating the environment that’s over there now.

Contractors Rarely Held Responsible for Misdeeds in Iraq

It seems the media is starting to get a handle on the real issues with contracting. Earlier this month, on the heels of the final nails in the coffin of the Special Inspector (although the nails could be removed by a Democrat Congress), comes the Washington Post article with surprising and ‘new’ awareness of limited accountability in Iraq.

The list of alleged contractor misdeeds in Iraq has grown long in the past 3 1/2 years. Yet when it comes to holding companies accountable, the charges seldom stick.

Critics say that because of legal loopholes, flaws in the contracting process, a lack of interest from Congress and uneven oversight by investigative agencies, errant contractors have faced few sanctions for their work in Iraq.

Doing a fair job of identifying problems, it does drop the ball on the Custer Battles case. The federal judge’s ruling was based on the origin of payments and not on the amount itself. The federal judge ruled that the plaintiffs could only go after the money the US paid Custer Battles and not after monies paid by the CPA, which was ostensibly, if far from reality, an Iraqi or at least non-US entity.

More critical are the examples of incomplete projects.

For example, auditors reviewed 14 projects by one contractor, Parsons Corp., and found that 13 had serious defects. Among the problem contracts was one to build 142 health clinics. Only six have opened.

Yet Parsons will not have to return any of its profit, nor is it likely to face any kind of formal punishment. Its contracts were what are called “cost-plus” deals, widespread in Iraq, in which the government bears much of the risk.

And we wonder how we’re not winning believers that we can make the country a better place.

The article does bring out an interesting point:

Bowen said the government should have been willing to fire contractors when it realized that projects were going awry. “I started pushing for terminations for default, which is how you hold underperforming contractors responsible, in the summer of 2005,” Bowen said.

But his calls were rarely heeded. The reason? “Litigation fear,” he said. “It was viewed as too much trouble.”

Because the contracts are so poorly written and managed, the government is afraid or coerced into not terminating. That may be part of the problem but Griff Witte, the WaPo reporter, gets down to brass tacks and nails one of the problems of endemic outsourcing:

Frederick F. Shaheen, an attorney with the firm Greenberg Traurig LLP who represents contractors, said firing a contractor is difficult because the military is so dependent on them.

If an official were to try to cancel a meal-service contract, for example, “some colonel is going to be on the phone to you ripping your lips off saying, ‘Why aren’t my troops being fed?’ ” Shaheen said.

The threat of canceling a contract “is normally the sharpest quiver in the bag of the contracting officer. But there’s no arrowhead on it any more,” Shaheen said. “So the checks and balances are gone. The system is broken.”

Ah, one of the hidden problems of contracting.

Upcoming conference in Brussels on PSCs

Well, it’s not the quickest they could have acted, but at least the conversation will happen soon. A half-day conference in Brussels next month (7 Dec 06) by the Security & Defence Agenda has two panels on privatization of force:

How Should EU Policymakers see the role of "Private Armies"

The crucial role of private security companies in Iraq looks increasingly like a pointer to the future. Private contractors are offering not only new reserves of skilled manpower but also sophisticated services ranging from intelligence-gathering and infrastructure protection to the provision in Iraq of command-and-control that links reconstruction and counter-insurgency operations. With many of these specialist security companies originating in Europe, how should EU policymakers see their roles developing? As Europe’s defence and security identity takes shape, what should be the inter-relationship between EU member states’ often hard-pressed military and the growing numbers of private sector security operators?

followed by

Are the NGOs and Private Security Companies Allies or Foes?

At first sight, NGOs involved in humanitarian relief or development work are far removed from private security companies. Yet they often pursue the same goals of protecting non-combatants and institution-building. How are private security specialists likely to fit into future EU-led relief and peacekeeping operations, and is there a need for a more clearly defined relationship both with EU battle groups and with the NGOs that administer the Union’s world-leading aid effort?

Both of these 90min sessions ask interesting questions, but the panel titles are intentionally leading. This should not be surprising considering the SDA’s target audience: Brussels-based international press. Still, it should be interesting what is said. I’m not going, but I’ll be interested in their report. The different portrayals of private security contractors by different media is interesting and understudied.

Interesting book: Private Actors and Security Governance

Private Actors and Security Governance looks like an interesting book that may ask the right questions about private forces. Much of the US discourse on non-state actors convienently ignores private security companies and their potential (actual is a better word) to influence foreign policy. The book’s teaser:

"The privatisation of security -understood as both the top-down decision to outsource military and security-related tasks to private firms and the bottom-up activities of armed non-state actors such as rebel opposition groups, insurgents, militias and warlord factions -have profound implications for the state’s monopoly on the legitimate use of force. Both top-down and bottom-up privatisation have significant consequences for effective, democratically accountable security sector governance as well as on opportunities for security sector reform across a range of different reform contexts. This volume situates security privatisation within a broader policy framework, considers several relevant national and regional contexts and analyses different modes of regulation and control relating to a phenomenon with deep historical roots but also strong links to more recent trends of globalisation and transnationalisation."

I haven’t read the book, so I can’t give a review but I’d be interested to hear from anybody who has. I’m curious how the book approaches the topic and what, if any, recommendations it makes.