Thursday, July 24, 2008

Contracting Woes

The Center for Public Integrity has published a report on contracting for the wars in Iraq and Afghanistan for the period 2004 - 2006. The important points:
  • Over the three years studied, more than $20 billion in contracts went to foreign companies whose identities—at least so far—are impossible to determine.
  • Nearly a third of the companies and joint ventures on the Top 100 are based outside the United States. These foreign contractors, along with the $20 billion in contracts awarded to the unidentified companies, account for about 45 percent of all funds obligated to the Top 100.
  • U.S. government contracts for work in Iraq and Afghanistan have grown more than 50 percent annually, from $11 billion in 2004 to almost $17 billion in 2005 and more than $25 billion in 2006.

And, according to the head of the GAO, "We have identified about 15 systemic, longstanding acquisition and contracting problems that exist within the Defense Department—which is the single biggest contractor within the U.S. government—that we are still not making enough progress on. I mean, this stuff isn't rocket science."

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