Almost everyone who manages a contract in Iraq complains about security issues. When a contractor wants to buy something related to security, it is very hard to know what is justified and what is excessive. Most of the time, the contract manager errs on the side of caution and approves the security-related request regardless of how expensive it is. As a result, security costs are consuming a large part of the Iraq reconstruction funds. According to Heather Layman, spokeswoman for USAID, security costs account for an average of 22 percent of a project's cost.
The cost of security guards is one of the largest components of any company’s security costs. The U.S. Department of Defense (DoD) estimates there are 60 private security firms with as many as 25,000 employees in Iraq. Some elite personnel with these companies make $33,000 a month. As of December 2004, the agencies and contractors in Iraq
recently reviewed by the Government Accountability Office (GAO) had obligated more than $766 million for private security providers in Iraq. (GAO didn’t look at every contractor, so that total cost is probably much higher.)
According to the GAO, "contractor officials acknowledge that the cost of private security services and security-related equipment, such as armored vehicles, has exceeded what they originally envisioned. In some cases, increased security costs resulted in reducing or canceling the scope of some reconstruction projects."
To help deal with the significant increases in security costs, GAO recommended that the Secretary of Defense, Secretary of State, and the USAID Administrator should help reconstruction contractors obtain reliable security services (rather than wasting their money on
untrustworthy security contractors) and develop a plan to handle security costs in the future. The State Department disagreed with the "recommendation to explore options to assist contractors in obtaining private security services, citing concerns that the government could be held liable for performance failures." Additionally, the State Department did not clearly explain how it intends to "track and account for private security costs, which is essential given that DoD and USAID are the principal agencies responsible for awarding and managing the majority of reconstruction contracts."
Posted by alohafromtim
at 11:43 PM EDT