WORLD> Middle East
Report: Iraq contracts have cost at least $85B
(Agencies)
Updated: 2008-08-13 15:39

The Justice Department is expected to decide soon whether to bring charges. The company itself is not expected to be prosecuted. Executives from Blackwater, based in Moyock, N.C., said recently that they planned to scale back their security contracting business and focus on other areas, in large part because of the negative attention after the shooting.

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The CBO estimated Tuesday that $6 billion to $10 billion has been spent on security work, and that the prices paid are comparable to a US military unit doing that work. It estimated that about 25,000-30,000 employees of security firms were in Iraq as of early 2008.

The report said the legal status of contractor personnel is uncertain, particularly for those who are armed. It also noted that military commanders have less direct authority over the actions of contractors than they would a subordinate because the contract is managed by a government contracting officer and not a military commander.

That's because that's how the government designed the relationship, said Alan Chvotkin, executive vice president and counsel for the Professional Services Council, which represents government contractors.

"There is accountability through the contract and to the contracting officer," Chvotkin said.

The use of military contractors dates to the American Revolution. During the Vietnam War, US contractors were targeted by protesters who accused the companies of profiting from the war.

Since the end of the Cold War, the military has relied more heavily on contractors as it reduced the size of its force. Also, the government in general has sought to outsource more activities that are not inherently governmental.

In Iraq and surrounding countries, contractors have performed duties that otherwise would have required the deployment of more troops. About 20 percent are US citizens; 40 percent are citizens of the country where they are working; and the rest are from other countries.

The personal cost to many of the employees has been great.