Commission Concerned with Contingency Contracting

By Scott Amey

Losses from waste, fraud, and abuse "run into the tens of billions" when it comes to federal contracting for contingency operations in Iraq and Afghanistan, according to a new report by the Commission on Wartime Contracting in Iraq and Afghanistan (CWC). The report, entitled "At what risk? Correcting over-reliance on contractors in contingency operations," is the CWC’s 2^nd interim report and its 5^th report overall.

The report highlights the government’s heavy use of contractors in Iraq and Afghanistan and the resulting problems. The report found, for example, that urgency, uncertainly, and shifting circumstances lead to waste. Specifically, the CWC found that contracts weren’t well planned, administration and oversight were lacking, and the acquisition workforce is understaffed. “When government agencies lack experienced and qualified workers to provide oversight, the potential for waste, fraud, and abuse in contract performance increases exponentially,” the report concluded.

The CWC mainly focuses on three agencies (Defense, State, and USAID mostly) and contractors. Here are a few of the report’s highlights:

• “In some cases, contractors have supplanted government personnel as the resident subject-matter experts.”

• Contracting policies and strategies have hampered competition and increased costs.

• “Contracting out acquisition and security functions introduces especially high risks to a contingency mission.”

• Poor-performing contractors are being relied upon because past performance information in not being effectively utilized and shared.

• Contractor accountability controls, including suspension and debarment, are hampered in war zones, but they should be used more frequently.

• “Investigating and prosecuting procurement-related crimes and other misconduct serve as powerful deterrents,” but the CWC believes that “current enforcement tools are inadequate to protect government interests in contracting”.

While the CWC states that there is no definitive Iraq and Afghanistan contract award total, it offers an estimate of “at least $177 billion." The report contains 32 recommendations, some of which POGO has promoted through the years in regard to non-contingency contracts.

The release of the report coincides with a CWC hearing entitled “Ensuring Contractor Accountability: Past Performance and Suspensions and Debarments” scheduled for February 28, 2011. I will be testifying, drawing on POGO’s experience in creating our Federal Contractor Misconduct Database as well as pointing out long-standing problems with the government’s suspension and debarment system.

Based on the release of this report and a look at the witness list, Monday might be a home run for those supporting good government contracting reforms. 

Scott Amey is POGO's General Counsel.

Image: CWC.