Senator McCaskill, ex-auditor, to shine brighter light on Iraq defense contracts

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http://thehill.com/business--lobby/senator-mccaskill-ex-auditor-to-shine-brighter-light-on-iraq-defense-contracts-2007-07-12.html

Senator McCaskill, ex-auditor, to shine brighter light on Iraq defense contracts
By Roxana Tiron
July 12, 2007

Freshman Sen. Claire McCaskill (D-Mo.), a former prosecutor and Missouri state auditor, is planning to offer several amendments to the defense authorization bill in an effort to curb contracting mismanagement and abuse in Iraq.

The new member of the Senate Armed Services Committee is coming into her own, drawing on her auditor experience to shine light on fraud in defense contracts. Around 180,000 contractors are in Iraq, performing everything from providing security and transportation to feeding the soldiers.

McCaskill is planning to introduce her amendments later in the week. The junior senator has worked closely with Armed Services Chairman Carl Levin (D-Mich.) to make sure “that they are principled measures,” according to a Senate aide.

Concerned about the growth of service contracts, particularly in Iraq, McCaskill is planning to introduce two amendments that would exercise tighter control over such contracts. One of them would require an independent review for service contracts higher than $100 million.

For example, under the Logistics Civilian Augmentation Program (LOGCAP), a multibillion-dollar contract with Kellogg Brown and Root spiraled out of control and there was no backstop, said a congressional source.

Stung by criticism of cost overruns and no-bid contracts, the Pentagon has now injected competition into its troop support arrangements. Three companies — KBR, DynCorp and Fluor Intercontinental — will compete for projects in the Middle East worth up to $150 billion.

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