CBO Report Debunks Common Myths on Cost, Role of Contractors in Iraq

August 12, 2008
A Congressional Budget Office report released today dispels some of the most common myths about the role of contractors supporting the U.S. operations in Iraq. The Professional Services Council welcomes the findings of the report, titled “Contractors’ Support of U.S. Operations in Iraq.”

“This is the first time an objective study has pulled together, into a single source, widely available information on contractors in Iraq,” said PSC Executive Vice President and Counsel Alan Chvotkin. “It also debunks much of the mythology around the cost and role of contractors supporting the current military, reconstruction and economic development efforts in Iraq,” he said.

Specifically, the report outlines the cost, functions, and numbers of personnel in the Iraq theater; compares the past and present use of contractors during military operations; and reviews the legal issues associated with contractor support.

“Iraq is the first time in history the United States has taken on three simultaneous missions in the same geographic location—a military operation, a reconstruction effort and economic development—so we are not surprised by the U.S. government’s policy to use more contractors to support those missions or by the level of contracting given that policy,” Chvotkin said.

In addition, the report dispelled the myth that contractor personnel cost considerably more than military personnel performing the same jobs. The report found that “the cost of a private security contract are comparable with those of a U.S. military unit performing similar functions,” when using CBO’s “better comparison” methods.

“This report adds valuable context for the previous conclusions about the role of contractors and should serve as a foundation for any future action,” Chvotkin said.