Walter Pincus: U.S. Pays Steep Price for Private Security in Iraq

[babylonsister]

U.S. Pays Steep Price for Private Security in Iraq

By Walter Pincus
Monday, October 1, 2007; Page A17

It costs the U.S. government a lot more to hire contract employees as security guards in Iraq than to use American troops.

It comes down to the simple business equation of every transaction requiring a profit.

The contract that Blackwater Security Consulting signed in March 2004 with Regency Hotel and Hospital of Kuwait for a 34-person security team offers a view into the private-security business world. The contract was made public last week by the House Oversight and Government Reform Committee majority staff as part of its report on Blackwater's actions related to an incident in Fallujah on March 31, 2004, when four members of the company's security team were killed in an ambush.

Understanding the contract's details requires some background: Regency was a subcontractor to another company, ESS Support Services Worldwide, of Cyprus, that was providing food and catering supplies to U.S. armed forces in Fallujah and other cities in Iraq. And ESS was a subcontractor to KBR, a subsidiary of Halliburton, which had the prime contract with the Defense Department.

So, Blackwater was a subcontractor to Regency, which was a subcontractor to ESS, which was a subcontractor to Halliburton's KBR subsidiary, the prime contractor for the Pentagon -- and each company along the way was in business to make a profit.

Under the contract, Regency was to pay Blackwater $11,082,326 for one year, with a second year option, to put together a 34-person team that would provide security services for the "movement of ESS's staff, management and workforce throughout Kuwait and Iraq and across country borders including the borders of Iraq, Kuwait, Turkey and Jordan."

Blackwater's personnel were to do more than just convoy security. They were also to run command centers in Kuwait and Iraq 24 hours a day, seven days a week, that were to control all ESS security operations; prepare risk assessments; develop security procedures; train ESS personnel in security; and even vet other Iraqi security forces hired by Regency.

more...

http://www.washingtonpost.com/wp-dyn/content/article/2007/09/30/AR2007093001352.html

[OneBlueSky]

1. "private security" is a major reason for this war's huge financial costs . . .

BushCo and their corporate partners will swear up and down that privatizing certain military functions saves the taxpayers' money . . . nothing could be farther from the truth . . .

since BushCo doesn't want a draft, they're short on fighting men and women . . . so they outsource everything they can -- from transportation to food service to laundry -- to "security contractors" in order to free up the soldiers who formerly did those jobs . . . just hand a cook a rifle and, voila, instant infantryman! . . .

but they have to pay the contractors four/five/ten times what they pay the soldiers, sailors, airmen and marines . . . just so they can entice civilians into "service" AND generate a massive profit for shareholders and executives . . .

it's called war profiteering . . . and it used to be illegal . . .

matter of fact, I think it still is . . .

[Hangingon]

2. OMB Circular A-76

Basically in place since Ike, calls for contracting out all 'Non-inherently governmental" functions. You should see what this includes. Guards - throughout the Federal government - are at the top of the list. It also saves the DOD billets that can be used as soldiers. Sure it costs more money. So, that is the world we live in. Look at the other governmental contracts - NASA. We went to the moon using contractors. They are everywhere. I recall a museum fabrication firm we used. If they made airline reservations, they just called and got tickets with no concern for cost. They added a 20% administrative surcharge to the bill. That is the world today. You better getbused to it.