oversight

Military Operations: Contractors Provide Vital Services to Deployed Forces but Are Not Adequately Addressed in DOD Plans

Published by the Government Accountability Office on 2003-06-24.

Below is a raw (and likely hideous) rendition of the original report. (PDF)

             United States General Accounting Office

GAO          Report to the Subcommittee on
             Readiness and Management Support,
             Committee on Armed Services, U.S.
             Senate

June 2003
             MILITARY
             OPERATIONS
             Contractors Provide
             Vital Services to
             Deployed Forces but
             Are Not Adequately
             Addressed in DOD
             Plans




GAO-03-695
                                               June 2003


                                               MILITARY OPERATIONS

                                               Contractors Provide Vital Services to
Highlights of GAO-03-695, a report to the
Subcommittee on Readiness and                  Deployed Forces but Are Not Adequately
                                               Addressed in DOD Plans
Management Support, Committee on
Armed Services, U.S. Senate




                                               While DOD and the military services cannot quantify the totality of support
The Department of Defense (DOD)                that contractors provide to deployed forces around the world, DOD relies on
uses contractors to provide a wide             contractors to supply a wide variety of services. These services range from
variety of services for U.S. military
                                               maintaining advanced weapon systems and setting up and operating
forces deployed overseas. We were
                                               communications networks to providing gate and perimeter security,
asked to examine three related
issues: (1) the extent of contractor
                                               interpreting foreign languages, and preparing meals and doing laundry for
support for deployed forces and                the troops. DOD uses contractor services for a number of reasons. In some
why DOD uses contractors; (2) the              areas, such as Bosnia and Kosovo, there are limits on the number of U.S.
extent to which such contractors               military personnel who can be deployed in the region; contract workers pick
are considered in DOD planning,                up the slack in the tasks that remain to be done. Elsewhere, the military does
including whether DOD has backup               not have sufficient personnel with the highly technical or specialized skills
plans to maintain essential services           needed in-place (e.g., technicians to repair sophisticated equipment or
to deployed forces in case                     weapons). Finally, DOD uses contractors to conserve scarce skills, to ensure
contractors can no longer provide              that they will be available for future deployments.
the services; and (3) the adequacy
of DOD’s guidance and oversight                Despite requirements established in DOD guidance (Instruction 3020.37),
mechanisms in managing overseas                DOD and the services have not identified those contractors that provide
contractors efficiently.                       mission essential services and where appropriate developed backup plans to
                                               ensure that essential contractor-provided services will continue if the
                                               contractor for any reason becomes unavailable. Service officials told us that,
                                               in the past, contractors have usually been able to fulfill their contractual
We are making a number of                      obligations and, if they were unable to do so, officials could replace them
recommendations to the Secretary               with other contractor staff or military personnel. However, we found that
of Defense to improve the                      this may not always be the case.
oversight and management of
contractors’ supporting deployed               DOD’s agencywide and servicewide guidance and policies for using and
forces. These include (1)
                                               overseeing contractors that support deployed U.S. forces overseas are
conducting required reviews to
identify mission essential services            inconsistent and sometimes incomplete, as in the following examples:
provided by contractors and
include them in planning; (2)                  •   Of the four services, only the Army has developed substantial guidance
developing and implementing the                    for dealing with contractors.
use of standard language for                   •   DOD’s acquisition regulations do not require any specific contract
contracts; and (3) developing                      clauses or language to cover possible overseas deployments or changes
comprehensive guidance and                         in deployment locations for contract workers. Of 183 contractor
doctrine to help the services                      employees planning to deploy with an Army division to Iraq, for
manage contractors’ supporting                     example, some did not have deployment clauses in their contracts. This
deployed forces. DOD agreed with                   omission can lead to increased contract costs as well as delays in getting
most of our recommendations but
                                                   contractors into the field.
believed a section of one was too
burdensome. We do not agree and                •   At the sites that we visited in Bosnia, Kosovo, and the Persian Gulf, we
have retained the recommendation                   found that general oversight of contractors appeared to be sufficient but
its entirety.                                      that broader oversight issues existed. These include inadequate training
                                                   for staff responsible for overseeing contractors and limited awareness by
www.gao.gov/cgi-bin/getrpt?GAO-03-695.
                                                   many field commanders of all the contractor activities taking place in
To view the full report, including the scope       their area of operations.
and methodology, click on the link above.
For more information, contact Neal Curtin at
(757) 552-8111 or curtinn@gao.gov.
Contents


Letter                                                                                   1
              Results in Brief                                                           2
              Background                                                                 4
              DOD Uses Contractors for a Wide Range of Services Because of
                Force Size Limitations and a Lack of Military Capability and
                Capacity                                                                 6
              DOD and the Services Have Not Identified Essential Services
                Provided by Contracts or Developed Plans for Their
                Continuation Should Contractors Not Be Available                       11
              Guidance and Contract Language and Oversight Vary within DOD
                and the Services                                                       20
              Conclusions                                                              35
              Recommendations for Executive Action                                     36
              Agency Comments and Our Evaluation                                       38

Appendix I    Scope and Methodology                                                    41



Appendix II   Comments from the Department of Defense                                  47



Table
              Table 1: Selected Services Provided by Contractors in Deployed
                       Locations                                                         7


Figures
              Figure 1: Selected Countries Where Contractors Are Supporting
                       Deployed Forces, As of April 2003                                 5
              Figure 2: DOD Instruction 3020.37 Essential Services Planning
                       Procedures                                                      14
              Figure 3: Contracts for Selected Services in Bosnia Are Awarded by
                       Many Different Agencies                                         32




              Page i                                        GAO-03-695 Military Operations
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Page ii                                                  GAO-03-695 Military Operations
United States General Accounting Office
Washington, DC 20548




                                   June 24, 2003

                                   The Honorable John Ensign
                                   Chairman
                                   The Honorable Daniel K. Akaka
                                   Ranking Minority Member
                                   Subcommittee on Readiness and Management Support
                                   Committee on Armed Services
                                   United States Senate

                                   The U.S. military has long used contractors to provide supplies and
                                   services to deployed U.S. forces, and more recently contractors have been
                                   involved in every major military operation since the 1991 Gulf War,
                                   including the recent war in Iraq. Although the Department of Defense
                                   (DOD) considers contractors to be part of the total force, neither DOD nor
                                   the services know the totality of contractor support being provided to
                                   deployed forces.1 However, military officials believe that the use of
                                   contractors for support to these forces has increased significantly since
                                   the 1991 Gulf War. Factors that have contributed to this increase include
                                   reductions in the size of the military, an increase in the numbers of
                                   operations and missions undertaken, and increasingly sophisticated
                                   weapons systems. You asked us to assess (1) the extent of contractor
                                   support to deployed U.S. forces and why DOD uses contractors; (2) the
                                   extent to which such contractors are considered in DOD planning,
                                   including whether DOD has backup plans to maintain essential services to
                                   deployed forces in case contractors can no longer provide them; and
                                   (3) the adequacy of guidance and oversight mechanisms in place to
                                   manage contractors effectively.

                                   As agreed with your staff, we focused our efforts in the Balkans and
                                   Southwest Asia because the contractors in those theaters provide a broad
                                   range of contractor support activities. We examined a wide range of
                                   contracts in order to assess the diversity of contractor support and met
                                   with officials at all levels of command to gain a comprehensive


                                   1
                                    Neither DOD nor the services have a single point that collects information on contracts to
                                   support deployed forces. As a result, DOD could provide us no information on the total
                                   cost of contractor support to deployed forces. However, based on the information and
                                   contracts we obtained during our review, we estimate that the costs of contractor support
                                   to deployed forces will exceed $4.5 billion for the period fiscal years 2000 through 2005.



                                   Page 1                                                   GAO-03-695 Military Operations
                   understanding of the contracting and contract management and oversight
                   processes. We did not, however, compare the cost of contractors versus
                   the cost of military personnel or make policy judgments on whether the
                   use of contractors is desirable. We conducted our review from August
                   2002 through April 2003 in accordance with generally accepted
                   government auditing standards. We discuss our scope and methodology in
                   more detail in appendix I.


                   DOD uses contractors to provide U.S. forces that are deployed overseas
Results in Brief   with a wide variety of services because of force limitations and a lack of
                   needed skills. The types of services contractors provide to deployed forces
                   include communication services, interpreters, base operations services,
                   weapons systems maintenance, gate and perimeter security, intelligence
                   analysis, and oversight over other contractors. The military uses
                   contractors to support deployed forces for several reasons. One reason is
                   that in some deployed areas, such as Bosnia and Kosovo, the Executive
                   Branch has limited the number of U.S. military personnel who can be
                   deployed in those countries at any one time. When these limits, known as
                   force caps, are in place, contractors replace soldiers so that the soldiers
                   will be available to undertake activities with the potential for combat. A
                   second reason that DOD uses contractors is because either the required
                   skills are not available in the military or are only available in limited
                   numbers and need to be available to deploy for other contingencies. For
                   example, when the Air Force deployed the Predator unmanned aerial
                   vehicle, it required contractor support because the vehicle is still in
                   development and the Air Force has not trained service members to
                   maintain the entire vehicle. Finally, DOD uses contractors to conserve
                   scarce skills to ensure that they will be available for future deployments.

                   DOD has not fully included contractor support in its operational and
                   strategic plans. As early as 1988, DOD was aware of the need to identify
                   contractors providing essential services but has done little to do so in the
                   ensuing 15 years. In 1991, DOD instructed its components to identify
                   essential services provided by contractors and develop plans to ensure the
                   continuation of those services should contractors become unavailable.
                   However, we found that DOD components have not conducted the
                   directed reviews to identify those contracts providing essential services.
                   We also found little in the way of backup plans in operational plans or as
                   separate documents, finding only one written backup plan among the
                   locations we visited, which included the Balkans and several Persian Gulf
                   countries. Many service officials told us that contractors have supported
                   contingencies in the past and, in their opinion, it was unlikely that


                   Page 2                                          GAO-03-695 Military Operations
contractors would not be available to provide support to deployed forces.
While most contractors with whom we met in the Persian Gulf stated their
intention to remain in the event of war with Iraq, contractor employees,
could become unavailable due to enemy attack or accidents. Some
commanders noted that although they have not formalized backup plans,
they assumed that should contractor support become unavailable, the
personnel needed to continue the service would be provided either by
other contractors or from military units. However, without firm plans,
there is no assurance that the personnel needed to provide the essential
services would be available when needed. Finally, DOD has done little to
include contractor support in its strategic human capital planning.

While individual contract oversight in deployed locations appeared to be
sufficient, we identified a number of broader issues associated with
managing contractor support. At the sites we visited, contract oversight
personnel for individual contracts were in place, and military members we
spoke to were generally satisfied with contractor performance and service.
However, broader oversight is lacking in key areas, making it difficult for
commanders to manage contractors effectively. For example, visibility of
all contractor support at a specific location is practically nonexistent at
the combatant commands, component commands, and deployed locations
we visited except in Bosnia, where a concerted effort has been undertaken
to identify all contractor support. As a result, commanders at deployed
locations have limited visibility and understanding of all contractor
activity supporting their operations and frequently have no easy way to get
answers to questions about contractor support. This lack of visibility
inhibits the ability of commanders to resolve issues associated with
contractor support such as force protection issues and the provision of
support to the contractor personnel. Guidance at the DOD, combatant-
command, and service levels regarding the use of contractors to support
deployed forces varies widely, and mechanisms for managing these
contractors are inconsistent, creating challenges that may hinder the
efficient use of contractors. Only the Army has developed substantial
guidance and policies to deal with contractor support to deployed forces.
In addition, there is no standardization of necessary contract language for
deployment of contractors. This situation can increase costs to the
government as well as impede the local commander’s ability to provide
force protection and support to contractor personnel.

We are making a number of recommendations to improve guidance,
training, and contractor visibility at all levels of command.




Page 3                                         GAO-03-695 Military Operations
             In written comments on a draft of this report, DOD agreed with three of
             our recommendations and partially agreed with three others. We modified
             two of our recommendations to address DOD’s concerns. However, DOD
             expressed concern that our recommendation to provide commanders
             more information about the contracts used to support deployed forces
             could be overly burdensome. We continue to believe all the
             recommendations have merit and will not impose an undue burden. A
             detailed discussion of DOD’s comments and our response is contained in
             the body of this report.



             Since the early 1990s, DOD has used contractors to meet many of its
Background   logistical and operational support needs during combat operations,
             peacekeeping missions, and humanitarian assistance missions, ranging
             from Somalia and Haiti to Bosnia, Kosovo, and Afghanistan. Today,
             contractors are used to support deployed forces at a number of locations
             around the world as figure 1 shows.




             Page 4                                        GAO-03-695 Military Operations
Figure 1: Selected Countries Where Contractors Are Supporting Deployed Forces, As of April 2003




                                        A wide array of DOD and non-DOD agencies can award contracts to
                                        support deployed forces. Such contracts have been awarded by the
                                        individual services, DOD agencies, and other federal agencies. These
                                        contracts typically fall into three broad categories—theater support,
                                        external support, and systems support. Theater support contracts are
                                        normally awarded by contracting agencies associated with the regional
                                        combatant command, for example, U.S. Central Command or service
                                        component commands like U.S. Army-Europe or by contracting offices at
                                        deployed locations such as Bosnia and Kosovo. Contracts can be for
                                        recurring services—such as equipment rental or repair, minor
                                        construction, security, and intelligence services—or for the one time
                                        delivery of goods and services at the deployed location. External theater
                                        contracts are awarded by commands external to the combatant command
                                        or component commands, such as the Defense Logistics Agency, the U.S.
                                        Army Corps of Engineers, and the Air Force Civil Engineer Support
                                        Agency. Under external support contracts, contractors are generally




                                        Page 5                                             GAO-03-695 Military Operations
                         expected to provide services at the deployed location. The Army’s
                         Logistics Civil Augmentation Program contract2 is an example of an
                         external theater contact. Finally, system contracts provide logistics
                         support to maintain and operate weapons and other systems. Systems may
                         be new or long-standing ones, and often the contracts are intended to
                         support units at their home stations. These types of contracts are most
                         often awarded by the commands responsible for building and buying the
                         weapons or other systems. Within a service or agency, numerous
                         contracting officers, with varying degrees of knowledge about the needs of
                         contractors and the military in deployed locations, can award contracts
                         that support deployed forces.

                         Depending on the type of service being provided under a contract,
                         contractor employees may be U.S. citizens, host country nationals,3 or
                         third country nationals.4 Contracts to support weapons systems, for
                         example, usually require U.S. citizens, while contractors that provide food
                         and housing services frequently hire local nationals or third country
                         nationals.


                         Contractors provide the military with a wide variety of services from food,
DOD Uses                 laundry, and recreation services to maintenance of the military’s most
Contractors for a        sophisticated weapons systems. DOD uses contractors during
                         deployments because limits are placed on the number of U.S. military
Wide Range of            personnel assigned to a region, required skills may not be available in the
Services Because of      service, or the services want to husband scarce skills to ensure that they
                         are available for other contingencies.
Force Size Limitations
and a Lack of Military
Capability and
Capacity

                         2
                          The Army’s Logistics Civil Augmentation Program contract was established by the Army
                         in 1985 as a means to (1) preplan for the use of contractor support in contingencies or
                         crises and (2) take advantage of existing civilian resources in the United States and
                         overseas to augment active and reserve forces.
                         3
                          A host country national is an employee of a contractor who is a citizen of the country
                         where the work is being preformed.
                         4
                          A third country national is an employee of a contractor who is neither a citizen of the
                         United States nor the host country.




                         Page 6                                                     GAO-03-695 Military Operations
Contractors Provide a Full   Contractors provide a wide range of services at deployed locations. The
Spectrum of Services to      scope of contractor support often depends on the nature of the
DOD’s Deployed Forces        deployment. For example, in a relatively stable environment such as the
                             Balkans, contractors provide base operations support services such as
                             food, laundry, recreational, construction and maintenance, road
                             maintenance, waste management, fire-fighting, power generation, and
                             water production and distribution services. Contractors also provide
                             logistics support such as parts and equipment distribution, ammunition
                             accountability and control, and port support activities as well as support
                             to weapons systems and tactical vehicles. In a less secure environment, as
                             was the case shortly after U.S. forces deployed to Afghanistan, contractors
                             principally provided support to weapons systems such as the Apache
                             helicopter and chemical and biological detection equipment. Table 1
                             illustrates some types of contractor support provided at selected deployed
                             locations. We were completing our work as the 2003 war with Iraq began
                             and so were unable to fully ascertain the extent of contractor support to
                             U.S. forces inside Iraq.

                             Table 1: Selected Services Provided by Contractors in Deployed Locations

                                                                                 Southwest
                              Service                                 Balkans    Asia           Central Asia
                              Weapons systems support                 X          X              X
                              Intelligence analysis                   X          X              X
                              Linguists                               X          X              X
                              Base operations support                 X          X              X
                              Logistics support                       X          X
                              Prepositioned equipment maintenance                X
                              Non-tactical communications             X          X
                              Generator maintenance                   X          X              X
                              Biological/chemical detection systems              X              X
                              Management and control of
                              government property                     X          X              X
                              Command, control, communications,
                              computers, and intelligence             X          X              X
                              Continuing education                    X
                              Fuel and material transport             X          X              X
                              Security guards                         X          X
                              Tactical and non-tactical vehicle
                              maintenance                             X          X
                              Medical service                                    X
                              Mail service                            X
                             Source: GAO.




                             Page 7                                             GAO-03-695 Military Operations
DOD Uses Contractors       Limits on the number of military personnel allowed in an area, called
Because of Limits on       “force caps”, lead DOD to use contractors to provide support to its
Force Size and a Lack of   deployed forces. In some countries or regions the size of the force is
                           limited due to law, executive direction, or agreements with host countries
Military Capability and    or other allies. For example, DOD has limited U.S. troops to 15 percent of
Capacity                   the North Atlantic Treaty Organization force in Kosovo while the
                           Philippine government limited the number of U.S. troops participating in a
                           recent deployment to 660. Since contractors are not included in most force
                           caps, as force levels have been reduced in the Balkans, the Army has
                           substituted contractors for soldiers to meet requirements that were
                           originally met by soldiers. In Bosnia, for example, the Army replaced
                           soldiers at the gate and base perimeter with contracted security guards. In
                           Kosovo, the Army replaced its firefighters with contracted firefighters as
                           the number of troops authorized to be in Kosovo decreased.5 By using
                           contractors the military maximizes its combat forces in an area.

                           In some cases, DOD lacks the internal resources to meet all the
                           requirements necessary to support deployed forces. The military services
                           do not always have the people with specific skill sets to meet the mission.
                           Army National Guard members deployed to Bosnia told us that they used
                           contractors to maintain their Apache and Blackhawk helicopters because
                                                                                    ,
                           the Guard has no intermediate maintenance capability.6 7 In addition,
                           recently fielded systems and systems still under development may have
                           unique technical requirements for which the services have not had time to
                           develop training courses and train service personnel. For example, when
                           the Army’s 4th Infantry Division deployed in support of the recent war in
                           Iraq, about one-third of the 183 contractor employees that deployed with
                           the division deployed to support the high tech digital command and
                           control systems still in development. Similarly, when the Air Force
                           deployed the Predator unmanned aerial vehicle, it required contractor
                           support because the vehicle is still in development and the Air Force has
                           not trained service members to maintain the Predator’s data link system.



                           5
                            As of October 2002, the Army estimated that contractors outnumbered military members
                           2 to 1 in the Balkans.
                           6
                            In the active Army both contactors and soldiers maintain Apache and Blackhawk
                           helicopters.
                           7
                            Intermediate level maintenance is generally responsible for repairs to aircraft components
                           such as engines, avionics, and armaments as well as the helicopter airframe. In addition,
                           intermediate level maintenance may also undertake some of the tasks the helicopter unit is
                           normally responsible for such as major inspections.




                           Page 8                                                   GAO-03-695 Military Operations
                           In addition, some weapons systems, such as the Marine Corp’s new truck,
                           were designed to be at least partially contractor supported from the
                           beginning, or the services made the decision to use contractor support
                           because the limited number of assets made contractor support cost
                           effective in DOD’s judgment. For example, the Army’s Guardrail
                           surveillance aircraft is entirely supported by contractors because,
                           according to Army officials, it was not cost effective to develop an organic
                           maintenance capability for this aircraft.

                           The increasing reliance on the private sector to handle certain functions
                           and capabilities has further reduced or eliminated the military’s ability to
                           meet certain requirements internally. For example, at Air Force bases in
                           the United States contractors now integrate base telephone networks with
                           local telephone systems. Since the Air Force eliminated this internal
                           capability to integrate the base telephone network with the local
                           telephone networks, it no longer has the military personnel qualified to
                           perform this task at deployed locations. Also, the use of commercial off-
                           the-shelf equipment results in an increased use of contractors. For
                           example, the Air Force and the Navy use commercial communications
                           systems at deployed locations in Southwest Asia and support this
                           equipment with contractors. According to one Navy official with whom we
                           spoke, the Navy uses contractors because it does not train its personnel to
                           maintain commercial systems.

                           In other cases, required skills are limited, and there is a need to conserve
                           high-demand, low-density8 units for future operations. Air Force officials
                           in Southwest Asia told us that they use contractors to maintain the
                           generators that provide power to the bases there because the Air Force
                           has a limited number of qualified maintenance personnel, and their
                           frequent deployment was having a negative impact on retention.


Impact of Contractors on   While most commanders believed that replacing service members with
Training                   contractors in deployed locations had no negative impact on the training
                           of military members, some believed that service members who did not
                           deploy with their units were missing valuable training opportunities. We
                           found opinions varied depending on the skill or military occupation that


                           8
                            These are military units that are in high demand since their unique capabilities make them
                           essential for a wide range of military operations. However, there are relatively few of these
                           units. Hence, both their rate and length of deployment tends to be longer than for other
                           military units.




                           Page 9                                                     GAO-03-695 Military Operations
was being replaced. For example, commanders told us that food service
personnel and communications personnel would not benefit from
deploying to Bosnia and Kosovo at this time because these locations no
longer replicate field conditions, rather they more closely resemble bases
in Germany or the United States. Other commanders told us that they
believed that logistics personnel as well as vehicle maintenance personnel
were missing the opportunity to work in high volume situations in a more
intense environment.

At some locations, contractor employees who work with military
personnel are providing training although such training may not be a
requirement of the contract. Contractors are training soldiers on systems
they ordinarily would not be exposed to, such as specially modified high
mobility multipurpose wheeled vehicles (Humvees) in Bosnia and
commercial power generators in Kuwait. They also train soldiers to
operate and maintain the newest technologies, such as computers and
communications systems supporting intelligence operations in Southwest
Asia. Training is comprised of not only hands-on experience but often
structured training classes as well.




Page 10                                        GAO-03-695 Military Operations
                          Contractors provide DOD with a wide variety of services at deployed
DOD and the Services      locations, and while DOD uses contractors as part of the total force mix
Have Not Identified       and recognizes the need to continue essential contractor services9 during
                          crises, it has not included them in operational and strategic planning. DOD
Essential Services        policy requires its components10 to annually review all contractor services,
Provided by Contracts     including new and existing contracts to determine which services will be
                          essential during crisis situations. Where there is a reasonable doubt about
or Developed Plans        the continuation of essential services during crisis situations by the
for Their                 contractor, the cognizant component commander is required to prepare a
Continuation Should       contingency plan for obtaining the essential service from alternate
                          sources. However, we found that the required contract reviews were not
Contractors Not Be        done, and there was little in the way of backup plans. Many commanders
Available                 assumed that other contractors or military units would be available to
                          provide the essential service if the original contractors were no longer
                          available. However, the commanders had no way of knowing if these
                          assets would actually be available when needed. Additionally, DOD has
                          not integrated its contractor workforce into its human capital strategy.


DOD Has Directed the      As early as 1988, DOD noted the lack of a central policy or an oversight
Identification of         mechanism for the identification and management of essential contractor
Contractor-Provided       services. A DOD Inspector General report,11 issued in November 1988,
                          noted that DOD components could not ensure that the emergency
Essential Services That   essential services performed by contractors would continue during a crisis
Need to Continue During   or hostile situation. The report also stated that there was “no central
Crises                    oversight of contracts for emergency essential services, no legal basis to
                          compel contractors to perform, and no means to enforce contractual
                          terms.” The report recommended that all commands identify
                           (1) “war-stopper” services that should be performed exclusively by
                          military personnel and (2) those services that could be contracted out, if a
                          contingency plan existed, to ensure continued performance if a contractor


                          9
                           According to DOD Instruction 3020.37, contractor services are considered essential when
                          (1) DOD components may not have military or civilian employees to perform these services
                          immediately or (2) the effectiveness of defense systems or operations may be seriously
                          impaired and interruption is unacceptable when those services are not available
                          immediately.
                          10
                             DOD components include the Military departments, the Joint Staff, the Combatant
                          Commands, and the Defense agencies.
                          11
                            Audit Report, Office of the Inspector General, Department of Defense, Retention of
                          Emergency-Essential Civilians Overseas During Hostilities, Report Number 89-026
                          (Washington, D.C.: Nov. 7, 1988).




                          Page 11                                                  GAO-03-695 Military Operations
                              does not perform. DOD concurred with the reports findings and
                              recommendations and drafted a directive to address them. This effort led
                              to the issuance of DOD Instruction 3020.37,12 in November 1990, which
                              addresses the continuation of essential contractor services during crisis
                              situations.

                              In 1991, the Department of Defense Inspector General reported13 on this
                              issue again. The Inspector General reported that generally “contingency
                              plans did not exist to ensure continued performance of essential services
                              if a contractor defaulted during a crisis situation.” The Inspector General’s
                              report also stated that there was no central policy or oversight for the
                              identification and management of essential services until DOD Instruction
                              3020.37 was issued. The Inspector General’s report noted that none of the
                              major or subordinate commands that they visited could provide them with
                              data concerning all contracts vital to combat or crisis operations. The
                              report concluded that although DOD’s instruction provided the needed
                              central policy that promotes the continuation of emergency essential
                              services during crises and hostile situations, the instruction needed
                              revision to provide additional assurances such as the identification of
                              war-stopper services and an annual reporting system identifying the
                              numbers of emergency essential contracts and their attendant personnel.
                              DOD concurred with the report findings but believed that since DOD
                              Instruction 3020.37 had just been issued, the services and agencies should
                              be given time to implement it.

DOD Instruction 3020.37       DOD Instruction 3020.37 assigns responsibilities and prescribes
Requires Component Heads to   procedures to implement DOD policy to assure that components
Take Action                   (1) develop and implement plans and procedures that are intended to
                              provide reasonable assurance of the continuation of essential services
                              during crisis situations and (2) prepare a contingency plan for obtaining
                              the essential service from alternate sources where there is a reasonable
                              doubt about the continuation of that service. Responsibility for ensuring
                              that all contractor services are reviewed annually, to include new and
                              existing contracts, to determine which services will be essential during
                              crisis situations rests with the heads of DOD components. They must also



                              12
                                Department of Defense Instruction 3020.37, Continuation of Essential DOD Contractor
                              Services during Crises, Nov. 6, 1990 (Change 1, Jan. 26, 1996).
                              13
                                Audit Report, Office of the Inspector General, Department of Defense, Civilian
                              Contractor Overseas Support During Hostilities, Report Number 91-105 (Washington,
                              D.C.: June 26, 1991).




                              Page 12                                                GAO-03-695 Military Operations
conduct an annual assessment of the unexpected or early loss of essential
contractor services on the effectiveness of support to mobilizing and
deployed forces. The results of these assessments are to be included in the
affected contingency or operations plans.

Planning procedures for component activities using essential contractor
services are specified in DOD Instruction 3020.37. The component is to
identify services that are mission essential and designate them in the
contract statement of work. Where a reasonable assurance of continuation
of essential contractor services cannot be attained, the component activity
commander is to do one of three things. The first is to obtain military,
DOD civilian, or host nation personnel to perform the services concerned,
and, in consultation with legal and contracting personnel, determine the
proper course of action to transition from the contractor-provided
services. The second is to prepare a contingency plan for obtaining the
essential services from other sources if the contractor does not perform in
a crisis. The third option for the commander is to accept the risk attendant
with a disruption of the service during a crisis situation. Figure 2 shows
the essential planning process required by DOD Instruction 3020.37.




Page 13                                         GAO-03-695 Military Operations
Figure 2: DOD Instruction 3020.37 Essential Services Planning Procedures




                                        DOD has also directed regional combatant commanders to identify
                                        contractors providing mission essential services and develop plans to
                                        mitigate their possible loss. In late 2002, the Joint Staff modified the
                                        logistics supplement to the Joint Strategic Capabilities Plan14 to require the
                                        development of a mitigation plan that details transitioning to other support
                                        should commercial deliveries and/or support become compromised. This


                                        14
                                          The Joint Strategic Capabilities Plan provides guidance to the combatant commanders
                                        and the Joint Chiefs of Staff to accomplish tasks and missions based on current
                                        capabilities.




                                        Page 14                                                GAO-03-695 Military Operations
                         was partly in response to problems with fuel deliveries in Afghanistan
                         during Operation Enduring Freedom. Also, Joint Staff guidance for the
                         development of operational plans by the regional combatant commanders
                         requires that those plans identify mission essential services provided by
                         contractors and identify the existence of any contingency plans to ensure
                         these services continue.


Essential Contractor     As noted earlier, DOD Instruction 3020.37 was issued in response to a 1988
Services Have Not Been   DOD Inspector General report, and in 1991 DOD stated that the
Identified               components should be given time to implement it. However, as of April
                         2003, 12 years later, we found little evidence that the DOD components are
                         implementing the DOD Instruction. The heads of DOD components are
                         required by the instruction to ensure that the instruction’s policies and
                         procedures are implemented by relevant subordinate organizations.
                         However, none of the services are conducting the annual review to
                         identify mission essential services that are being provided by contractors.
                         Service and combatant command officials we spoke with were generally
                         unaware of the requirement to review contracts annually and identify
                         essential services. None of the regional combatant commands, service
                         component commanders, or installations visited during our review had an
                         ongoing process for reviewing contracts as required by DOD Instruction
                         3020.37. Without identifying mission essential contracts, commanders do
                         not know what essential services could be at risk during operations.
                         Furthermore, the commanders cannot determine when backup plans are
                         needed, nor can they assess the risk they would have to accept with the
                         loss of contractor services. One Air Force official indicated that our visit
                         had prompted a review of their contracts to identify those that provided
                         essential services and that he became aware of this requirement only when
                         we asked about their compliance with the instruction.

                         Additionally, DOD has limited knowledge of the extent to which DOD
                         Instruction 3020.37 is being implemented. The instruction states that an
                         office within the Office of the Secretary of Defense will “periodically
                         monitor implementation of this instruction.” However, we found no
                         evidence that the required monitoring had ever taken place. In discussion
                         with the office that has primary responsibility for the instruction (located
                         in the Office of the Under Secretary of Defense for Personnel and
                         Readiness) we were told that the monitoring process is informal and that
                         since DOD components have not advised the office of any significant
                         problems in implementing the instruction (as required by the instruction)
                         it is assumed that it is being implemented.



                         Page 15                                          GAO-03-695 Military Operations
Backup Planning Is Not     We found little in the way of backup plans to replace mission essential
Being Done                 contractor services during crises if necessary. This is not surprising since a
                           prerequisite to developing a backup plan is the identification of those
                           contracts that provide essential services. Many of the people we talked to
                           assumed that the personnel needed to continue essential services would
                           be provided, either by other contractors or organic military capability and
                           did not see a need for a formal backup plan. The only written backup plan
                           that we found was for maintenance of the Air Force’s C21J executive
                           aircraft.15 According to the plan, if contractors are unavailable, Air Force
                           personnel will provide maintenance. However, according to Air Force
                           officials, no one in the Air Force is trained to maintain this aircraft.

                           Our review of unclassified portions of operations plans16 addressing
                           logistics support revealed no backup planning. For example, in our review
                           of the logistics portion of the operations plan for the war in Iraq, which
                           addresses contracting, we found that there were no backup plans should
                           contractors become unavailable to provide essential services. The plan
                           provides guidance on certain aspects of contracting, such as the creation
                           of a joint contracting cell, but there is no language pertaining to backup
                           plans. In addition, our review of operations plans for the Balkans did not
                           identify any reference to plans for the mitigation of the loss of contractor
                           support.


Lack of Backup Plans May   In response to our questions about a lack of backup plans, many DOD
Be Shortsighted            officials noted that contractors have always supported U.S. forces in
                           deployed locations and the officials expect that to continue.17 While most
                           of the contractor personnel we spoke with in the Persian Gulf indicated
                           that they would remain in the event of war with Iraq, they cannot be
                           ordered to remain in a hostile environment or replace other contractors
                           that choose not to deploy. DOD can initiate legal action against a


                           15
                             At the time of our review these aircraft were located at Ramstein Air Base in Germany
                           but could be deployed to the Balkans or Southwest Asia. During the 1991 Gulf War, these
                           aircraft were deployed to Saudi Arabia.
                           16
                             We were able to review sections of a limited number of operations plans. Our review was
                           restricted to those portions that address logistics support, including support by
                           contractors.
                           17
                             It is DOD policy that contractors providing essential services are expected to use all
                           means at their disposal to continue to provide such services, in accordance with the terms
                           and conditions of the contract during periods of crisis, until appropriately released or
                           evacuated by military authority.




                           Page 16                                                  GAO-03-695 Military Operations
contractor for nonperformance, but the mission requirement the
contractor was responsible for remains.

Assuming that existing contractor employees will be available to perform
essential services may not always be realistic. Reasons for the loss of
contractor support can extend beyond contractors refusing to deploy to or
remain in the deployed location. Contractors could be killed (seven
contractor employees were killed in the 1991 Gulf War) or incapacitated
by hostile action, accident, or other unforeseen events. Furthermore, there
is no guarantee that a contractor will be willing to deploy to replace the
original contractor.

Should contractors become unavailable, many of the people we talked to
assumed that the personnel needed to continue essential services would
be provided either by other contractors or organic military capability, or
they would do without the service. However, these assumptions have not
been vetted, and key questions remain.

The ability to replace existing contractor services with a new contractor
can be dependent on the support being provided. Assumptions that
military resources will be available may not recognize that multiple
commands may be relying on the same unit as backup and that these units
therefore may not be available, or organic capability may not exist. As we
noted earlier the lack of organic capability is one reason that DOD uses
contractors. The Air Force’s lack of in-house maintenance capability for its
C21J aircraft mentioned earlier and the Army’s total dependence on
contractor support for all its fixed wing aircraft are examples of the lack
of organic capability. For some contracts, comparably skilled contractor
personnel may not be available from other companies. For example, we
were told at one location that only certain contractors have access to
proprietary technical and backup data from the manufacturers of specific
aircraft or systems. Additionally, the contracted services required for
military operations may also be needed by others. For example, shortages
of qualified linguists to support Operation Enduring Freedom in
Afghanistan delayed interrogations and signals exploitation. Among the
reasons given for the shortage were the competing demands of other
government agencies for the same skills.

If the decision to do without the essential service is made, the risk
associated with this decision must be examined and determined to be
acceptable, particularly in light of the reliance on contractors. Without
contractor support certain missions would be at risk. For example, Task
Force Eagle in Bosnia relies on contracted linguistic and intelligence


Page 17                                         GAO-03-695 Military Operations
                          analyst services. We were told that if the contracted services were lost, it
                          would mean an immediate critical loss would occur for the military
                          because DOD does not have service personnel with these skills. Another
                          example is biological detection equipment used by the Army deployed in
                          Afghanistan in October 2001. The equipment is operated by Army
                          personnel but is entirely dependent upon contractor support for
                          maintenance in the field. The loss of this contractor support would
                          adversely affect the Army’s ability to detect biological threats at deployed
                          locations.


Contractors Are Not       DOD relies on contractors as part of the total force. According to Joint
Included in DOD’s Human   Publication 4-05,18
Capital Strategic Plan    “The total force policy is one fundamental premise upon which our military force structure
                          is built. It was institutionalized in 1973 and … as policy matured, military retirees, DOD
                          personnel, contractor personnel, and host-nation support personnel were brought under its
                          umbrella to reflect the value of their contributions to our military capability.”

                          Furthermore, DOD policy states “the DOD Components shall rely on the
                          most effective mix of the Total Force, cost and other factors considered,
                          including active, reserve, civilian, host-nation, and contract resources
                          necessary to fulfill assigned peacetime and wartime missions.”19

                          While DOD policy may consider contractors as part of the total force, its
                          human capital strategy does not. As we recently reported,20 DOD has not
                          integrated the contractor workforce into its overall human capital
                          strategic plans.21 The civilian plan notes that contractors are part of the
                          unique mix of DOD resources, but the plan does not discuss how DOD will
                          shape its future workforce in a total force context that includes
                          contractors. This situation is in contrast to what studies on human capital
                          planning at DOD have noted. For example, the Defense Science Board’s


                          18
                           The Joint Chiefs of Staff, Joint Doctrine for Mobilization Planning, Joint
                          Publication 4-05 (Washington, D.C.: June 1995).
                          19
                               Department of Defense Instruction 3020.37.
                          20
                            U.S. General Accounting Office, DOD Personnel: DOD Actions Needed to Strengthen
                          Civilian Human Capital Strategic Planning and Integration with Military Personnel
                          and Sourcing Decisions, GAO-03-475 (Washington, D.C.: Mar. 28, 2003).
                          21
                            DOD’s overall human capital strategy consists of three separate plans: one for civilians,
                          one for military personnel, and one for quality of life issues for service members and their
                          families.




                          Page 18                                                    GAO-03-695 Military Operations
2000 report on Human Resources Strategy22 states that DOD needs to
undertake deliberate and integrated force shaping of the civilian and
military forces, address human capital challenges from a total force
perspective, and base decisions to convert functions from military to
civilians or contractors on an integrated human resources plan. In
addition, the National Academy of Public Administration noted that as
more work is privatized and more traditionally military tasks require
support of civilian or contractor personnel, a more unified approach to
force planning and management will be necessary; serious shortfalls in any
one of the force elements (military, civilian, or contractor) will damage
mission accomplishment.23

DOD disagreed with our March 2003 recommendation that it develop a
departmentwide human capital strategic plan that integrates both military
and civilian workforces and takes into account contractor roles.24 In
disagreeing, DOD said that it presently has both a military and civilian
plan; the use of contractors is just another tool to accomplish the mission,
not a separate workforce, with separate needs, to manage. The intent of
our recommendation is that strategic planning for the civilian workforce
be undertaken in the context of the total force—civilian, military, and
contractors—because the three workforces are expected to perform their
responsibilities in a seamless manner to accomplish DOD’s mission. We
continue to believe that strategic planning in a total force context is
especially important because the trend toward greater reliance on
contractors requires a critical mass of civilian and military personnel with
the expertise necessary to protect the government’s interest and ensure
effective oversight of contractors’ work. Integrated planning could also
facilitate achieving a goal in the Quadrennial Defense Review to focus
DOD’s resources (personnel) in those areas that directly contribute to war
fighting and to rely on the private sector for non-core functions.




22
     The Defense Science Board Task Force on Human Resources Strategy, February 2000.
23
  The 2000 National Academy of Public Administration, Civilian Workforce 2020:
Strategies for Modernizing Human Resources Management in the Department of the
Navy (Washington, D.C.: Aug. 18, 2000).
24
  U.S. General Accounting Office, DOD Personnel: DOD Comments on GAO’s Report on
DOD’s Civilian Human Capital Strategic Planning, GAO-03-690R (Washington, D.C.: Apr.
18, 2003).




Page 19                                                 GAO-03-695 Military Operations
                             Guidance at the DOD, combatant-command, and service levels regarding
Guidance and                 the use of contractors to support deployed forces varies widely as do the
Contract Language            mechanisms for managing these contractors, creating challenges that may
                             hinder a commander’s ability to oversee and manage contractors
and Oversight Vary           efficiently. There is no DOD-wide guidance that establishes baseline
within DOD and the           polices to help ensure the efficient use of contractors that support
                             deployed forces. The Joint Staff has developed general guidance for
Services                     regional combatant commanders. At the service level, only the Army has
                             developed comprehensive guidance to help commanders manage deployed
                             contractors effectively. Furthermore, there is little or no visibility of
                             contractors or contracts at the regional combatant or service component
                             command level. As a result, contractors have arrived at deployed locations
                             unbeknownst to the ground commander and without the government
                             support they needed to do their jobs. Moreover, ground commanders have
                             little visibility over the totality of contractors that provide services at their
                             installations, causing concerns regarding safety and security.


Guidance on the Use of       Guidance for issues that impact all the components originates at the DOD
Contractors to Support       level. Typically, DOD will issue a directive—a broad policy document
Deployed Forces Varies       containing what is required to initiate, govern, or regulate actions or
                             conduct by DOD components. This directive establishes a baseline policy
Widely                       that applies across the combatant commands, services, and DOD agencies.
                             DOD may also issue an instruction—which implements the policy, or
                             prescribes the manner or a specific plan or action for carrying out the
                             policy, operating a program or activity, and assigning responsibilities. For
                             example:

                         •   DOD Directive 2000.1225 establishes DOD’s antiterrorism and force
                             protection policy.
                         •   DOD Instruction 2000.1626 establishes specific force protection standards
                             pursuant to the policy established by DOD Directive 2000.12.
                             In the case of contractor support for deployed forces, we found no DOD-
                             wide guidance that establishes any baseline policy regarding the use of
                             contractors to support deployed forces or the government’s obligations to




                             25
                              Department of Defense Directive 2000.12, DOD Antiterrorism/Force Protection Program,
                             Apr. 13, 1999.
                             26
                                  Department of Defense Instruction 2000.16, DOD Antiterrorism Standards, June 14, 2001.




                             Page 20                                                    GAO-03-695 Military Operations
    these contractors.27 However, there are varying degrees of guidance at the
    joint and service level to instruct commanders on the use of contractors.

    The Joint Staff has developed guidance for regional combatant
    commanders. Joint Publication 4-0, Doctrine for Logistic Support of
    Joint Operations, “Chapter V, Contractors in the Theater”28 sets forth
    doctrine on the use of contractors and provides a framework for
    addressing contractor support issues. The Joint Publication describes the
    regional combatant commander’s general responsibilities, including

•   integration of contractors as part of the force as reflected in the
    Time-Phased Force and Deployment Data,29 logistics plans, and operation
    plans;
•   compliance with international, U.S., and host nation laws and
    determination of restrictions imposed by international agreements on the
    status of contractors;
•   establishment of theater-specific requirements and policies for contractors
    and communication of those requirements to the contractors; and
•   establishment of procedures to integrate and monitor contracting
    activities.

    No single document informs the combatant commander of his
    responsibilities with regards to contractors. Rather, there is a variety of
    guidance that applies to contractors and appears in joint or DOD
    publications. For example, in addition to Joint Publication 4-0, the
    following DOD documents address contractors at deployed locations:

•   DOD Directive 2000.12 and DOD Instruction 2000.16, define the
    anti-terrorism and force protection responsibilities of the military. These
    include force protection responsibilities to contractors as well as
    requirements placed on contractors who deploy.




    27
      DOD Instruction 3020.37 does not provide guidance on the use of contractors to support
    deployed forces or the government’s obligations to deployed contractors. Rather, it focuses
    on essential services and how to ensure that these services will be available in a crisis.
    28
       Joint Chiefs of Staff, Doctrine for Logistics Planning of Joint Operations, Joint
    Publication 4-0 (Washington D.C.: June 1995).
    29
      The Time-Phased Force and Deployment Data describes force requirements, how and
    when those forces are to be deployed, and the transportation assets needed to deploy
    them.




    Page 21                                                   GAO-03-695 Military Operations
•   Joint Publication 3-11,30 includes a requirement that mission-essential
    contractors be provided with chemical and biological survival equipment
    and training.
•   DOD Directive 4500.5431 requires all non-DOD personnel traveling under
    DOD sponsorship to obtain country clearance. While the directive does
    not specify contractors, it does apply to them, further complicating the
    ability of a commander to become aware of this responsibility.

    Joint Publication 4-0 only applies to combatant commanders involved in
    joint operations. However, at the regional combatant commands we
    visited, contracting, logistics, and planning officials were not
    implementing the Joint Publication.

    At the service level, only the Army has developed comprehensive guidance
    to help commanders manage contractors effectively. As the primary user
    of contractors while deployed, the Army has taken the lead in formulating
    policies and doctrine addressing the use of contractors in deployed
    locations. Army regulations, field manuals, and pamphlets provide a wide
    array of guidance on the use of contractors. The following are examples:

•   Army Regulation 715-9—Contractors Accompanying the Force32—
    provides policies, procedures, and responsibilities for managing and using
    contracted U.S. citizens who are deployed to support Army requirements.
•   Army Field Manual 3-100.21—Contractors on the Battlefield 33—addresses
    the use of contractors as an added resource for the commander to
    consider when planning support for an operation. Its purpose is to define
    the role of contractors, describe their relationships to the combatant
    commanders and the Army service component commanders, and explain
    their mission of augmenting operations and weapons systems support. It is
    also a guide for Army contracting personnel and contractors in
    implementing planning decisions and understanding how contractors will
    be managed and supported by the military forces they augment.



    30
     Joint Chiefs of Staff, Joint Doctrine for Operations in Nuclear, Biological, and
    Chemical (NBC) Environments, Joint Publication 3-11 (Washington, D.C: July 2000).
    31
         DOD Directive 4500.54, Official Temporary Duty Travel Abroad, May 1991.
    32
      Department of the Army Regulation 715.9, Contractors Accompanying the Force, October
    1999.
    33
      Department of the Army Field Manual 3-100.21, Contractors on the Battlefield, November
    2002.




    Page 22                                                   GAO-03-695 Military Operations
•   Army Pamphlet 715-16—Contractor Deployment Guide34—informs
    contractor employees, contracting officers, and field commanders of the
    current policies and procedures that may affect the deployment of
    contractors. The guide focuses on the issues surrounding a U.S. citizen
    contractor employee who is deploying from the United States to a theater
    of operation overseas.

    These documents provide comprehensive and detailed direction to
    commanders, contracting personnel, and contractors on what their roles
    and responsibilities are and how they should meet them. Officials we
    spoke with at various levels of the Army were generally aware of the
    Army’s guidance. For example, in Kosovo we received a briefing from the
    commander of the Area Support Group that included the applicable Army
    guidance on the use of contractors in deployed locations. Additionally, the
    Army Materiel Command has established a Web site35 that contains links to
    primary and secondary documents that provide guidance on the use of
    contractors on the battlefield.

    The other services make less use of contractors to support deployed
    forces. Nevertheless, their contractors provide many of the same services
    as the Army’s contractors, often under similar austere conditions at the
    same locations and therefore have similar force protection and support
    requirements as Army contractors. For example, both Air Force and Army
    contractors work at bases in Kuwait and do not have significant
    differences in terms of their living and working conditions or the types of
    threats they face. Also, it is not uncommon to find Air Force contractors
    deployed in support of the other services, as is the case in Bosnia where
    Air Force contractors maintain the Army’s Apache and Blackhawk
    helicopters.

    However, the other services have not developed the same level of
    guidance as the Army to guide commanders and contracting personnel on
    how to meet those requirements. Like the Army, the Air Force uses
    contractors for base operations support (including security, trash removal,
    and construction services) in deployed locations. Contractors also provide
    many essential services to Air Force units deployed to Bosnia and
    Southwest Asia. In Southwest Asia contractors provide support for base
    communications systems, systems that generate the tactical air picture for


    34
         Department of the Army Pamphlet 715-16, Contractor Deployment Guide, February 1998.
    35
         http://www.amc.army.mil/amc/rda/default.htm.




    Page 23                                                  GAO-03-695 Military Operations
    the Combined Air Operations Center, and maintenance support for both
    the Predator unmanned aerial vehicle and the data links it uses to transmit
    information. In 2001, the Air Force issued a policy memorandum36
    addressing the use of contractors in deployed locations. The purpose of
    the memorandum is to provide consistent and uniform guidance on the
    use of U.S. contractor personnel to augment the support of Air Force
    operations in wartime and contingency operations. For example, the
    memorandum states as follows:

•   Any determination regarding commercial support must consider the
    essential services that must be maintained and the risks associated due to
    contractor non-performance.
•   Contractors may be provided force protection and support services such
    as housing and medical support commensurate to those provided to DOD
    civilians, if the contract requires it.
•   Contractors should not be provided uniforms or weapons.

    However, the Air Force has not developed the guidance to instruct its
    personnel on how to implement this policy. For example, the Air Force
    does not have a comparable document to the Army’s Contractor
    Deployment Guide, to instruct contracting personnel or contractor
    employees on deployment requirements such as training, medical
    screening, and logistical support.

    The Navy and the Marine Corps have also not developed much guidance
    on dealing with contractors in deployed locations. The Marine Corps has
    issued an order37 addressing the use of contractors, which is limited to a
    statement that contractor personnel should not normally be deployed
    forward of the port of debarkation and that contractor logistics support
    requirements be identified and included in all planning scenarios. This
    guidance only addresses contractor support for ground equipment, ground
    weapons systems, munitions, and information systems. As with the Air
    Force memorandum, the Marine Corps does not have the guidance in
    place to instruct personnel on how to implement this order.




    36
      Air Force memorandum, USAF Guidance on Contractors in the Theater (Unpublished:
    Feb. 8, 2001).
    37
     Marine Corps Order 4200.32, Contractor Logistics Support for Ground Equipment,
    Ground Weapons Systems, Munitions, and Information Systems, December 2000.




    Page 24                                               GAO-03-695 Military Operations
                               The Navy does not have any guidance related to contractor support of
                               deployed forces. Navy officials stressed that because most Navy
                               contractors are deployed to ships, many of the issues related to force
                               protection and levels of support do not exist. Nevertheless, some
                               contractors do support the Navy ashore and therefore may operate in an
                               environment similar to contractors supporting the Army. In fact, of the
                               seven contractors killed in the 1991 Persian Gulf War, three were working
                               for the Navy. Furthermore, we learned that there have been issues with the
                               support of contractors deployed on ships. For example, officials at the
                               Navy’s Space and Naval Warfare Systems Command told us they were not
                               sure if the Navy was authorized to provide medical treatment to their
                               contractors deployed on ships.

Some Guidance Is               The differences in the DOD and service guidance can lead to sometimes
Contradictory and Causes       contradictory requirements, complicating the ability of commanders to
Confusion for Military         implement that guidance. For example, guidance related to providing force
Commanders                     protection to contractor personnel varies significantly. Joint guidance
                               states that force protection is the responsibility of the contractor; Army
                               guidance places that responsibility with the commander; and Air Force
                               guidance treats force protection as a contractual matter, specifically, as
                               follows:

                           •   Joint Publication 4-0 “Chapter V,” states “Force protection responsibility
                               for DOD contractor employees is a contractor responsibility, unless valid
                               contract terms place that responsibility with another party.”
                           •   Army Field Manual 3-100.21 states, “Protecting contractors and their
                               employees on the battlefield is the commander’s responsibility. When
                               contractors perform in potentially hostile or hazardous areas, the
                               supported military forces must assure the protection of their operations
                               and employees. The responsibility for assuring that contractors receive
                               adequate force protection starts with the combatant commander, extends
                               downward, and includes the contractor.”
                           •   The Air Force policy memorandum states, “The Air Force may provide or
                               make available, under terms and conditions as specified in the contract,
                               force protection … commensurate with those provided to DOD civilian
                               personnel to the extent authorized by U.S. and host nation law.”

                               As a result, the combatant commander does not have a uniform set of
                               requirements he can incorporate into his planning process but instead has
                               to work with requirements that vary according to the services and the
                               individual contracts. In fact, an official on the Joint Staff told us that the
                               combatant commanders have requested DOD-wide guidance on the use of




                               Page 25                                          GAO-03-695 Military Operations
                           contractors to support deployed forces to establish a baseline that applies
                           to all the services.

                           Many of the issues discussed in the balance of this report, such as the lack
                           of standard contract language related to deploying contractors, the lack of
                           visibility over contractors, and adequate support to deployed contractors
                           stem in part from the varying guidance at the DOD and service levels.
                           According to DOD officials, DOD is in the initial phase of developing a
                           directive that will establish DOD policy with regard to managing
                           contractors in deployed locations as well as a handbook providing greater
                           detail. The officials expect this guidance to be issued by the end of 2003.
                           DOD officials involved stated this guidance would bring together all DOD
                           policies that apply to contractors who support deployed forces and clarify
                           DOD policy on issues such as force protection and training. These officials
                           indicated that the DOD directive and handbook would be based on the
                           Army guidance on the use of contractors to support deployed forces.


Contracts for Support of   There is no standard contract language applicable DOD-wide (such as in
Deployed Forces Often Do   the Defense Federal Acquisition Regulation Supplement) related to the
Not Include the Language   deployment and support of contractors that support deployed forces.
                           Contracting officers therefore may not address potential requirements
to Ensure Efficient        related to deployments or may use whatever deployment language they
Deployments or             believe to be appropriate, which may not address the necessary
Implement Policy           deployment requirements. The Defense Acquisition Deskbook Supplement
                           entitled Contractor Support in the Theater of Operations includes
                           suggested clauses for contracts in support of deployed forces. However,
                           these clauses are not mandatory and did not appear to be widely known by
                           contracting officers. As a result, there is no common baseline of contract
                           language specifically addressing deployment that is required for contracts
                           that may support deployed forces and no assurance that all of these
                           contracts will properly address deployment requirements.

                           The degree to which individual contracts adequately address deployment
                           requirements varies widely. System support contracts are often written
                           before the need to deploy is identified, and the contracting officer may not
                           have considered the possibility of deployment. Also, some weapons
                           systems are being deployed before they are fully developed, and
                           deployment language was not included in the development contracts.
                           Some of the system support contracts we looked at did not include
                           language clearly specifying that contractors may need to deploy to hostile
                           and austere locations to provide support to deployed forces, as in the
                           following examples:


                           Page 26                                         GAO-03-695 Military Operations
•   The contract for an Army communications system needed to be modified
    when the system was relocated from Saudi Arabia to Kuwait (and would
    need to be modified again if the system were brought into Iraq) because
    the contract did not contain provisions for deployment to other locations.
•   The Air Force Predator unmanned aerial vehicle contract did not envision
    deployment since the Predator was developed as an advanced technology
    concept demonstration project.
•   An engineering support contract for the Navy did not contain a specific
    deployment clause but only stated that the contractor must support the
    Navy ashore or afloat.

    The Army’s Combined Arms Support Command found a similar situation
    when it reviewed system support contracts for the 4th Infantry Division.
    The 4th Infantry Division is the Army’s first digitized division and serves as
    the test bed for the latest command and control systems, many of which
    are still under development. The Combined Arms Support Command
    study38 reviewed 89 contracts that supported the division. The command
    determined that 44 of the 89 contracts would likely require that contractor
    personnel be deployed and found that 21 of the 44 either had no
    deployment language or vague deployment language. However, this did
    not impede the division’s deployment for Operation Iraqi Freedom.
    According to Army officials, 183 contractor employees prepared to deploy
    in support of the 4th Infantry Division’s deployment, including some
    whose contracts were noted in the 4th Infantry Division study as having
    had either no deployment language or vague deployment language. To
    ensure that problems do not arise when units deploy, the Army has taken
    steps to address some of the issues identified in the study. Specifically, in
    2002, the Assistant Secretary of the Army for Acquisition, Logistics, and
    Technology issued the following memorandums:

•   A January 2002 memorandum39 stating that development contracts
    providing support contractor personnel shall contain appropriate
    deployment guidance if they have any likelihood of being deployed outside
    of the United States.




    38
       U.S. Army, Combined Arms Support Command, Acquisition Liaison Office, Systems
    Contractor Support of 4th Infantry Division. (Ft. Lee, Va.: Aug. 2001).
    39
      Memorandum from the Assistant Secretary of the Army (Acquisition, Logistics, and
    Technology), Contractor Systems Support During Contingency Operations,
    (Unpublished: Jan. 28, 2002).




    Page 27                                                GAO-03-695 Military Operations
•   A June 2002 memorandum40 stating that Program Executive Officers and
    Program Managers should strive to develop systems that do not require
    contractor support in forward deployed locations.
    Military officials we spoke with told us that the lack of specific
    deployment language in contracts could increase the time it would take to
    get contractor support to deployed forces as well as the cost of that
    support. For example, the contract for support of the Army’s
    prepositioned equipment in Qatar did not include language that provided
    for a potential deployment to Kuwait. As a result, when the need arose to
    move the equipment to Kuwait, the contract needed to be modified. (The
    cost of the modification was $53 million although it is not clear what
    amount, if any, the government could have saved had deployment
    language already been included in the contract.)

    Contacts may also lack language to enforce policies pertaining to
    contractors in deployed locations. For example, Army policy requires that
    contractors follow all general orders41 and force protection policies of the
    local commander. However, these requirements were not always written
    into the contract documents and thus may not be enforceable. In such
    situations, commanders may not have the ability to control contractor
    activities in accordance with general orders. For example, judge advocate
    officials in Bosnia expressed their concern that the base commander was
    not authorized to prevent contractor personnel from entering a local
    mosque in a high threat environment. These officials suggested that
    commanders should always be able to control contractor activities where
    matters of force protection are concerned. Several officials indicated that
    many of these issues could be addressed if DOD implemented a policy that
    required all contracts that support deployed forces to include language
    that applies the general orders and force protection policies of the local
    commanders to contractor employees.




    40
      Memorandum from the Assistant Secretary of the Army (Acquisition, Logistics, and
    Technology), Contractor Support Restrictions, (Unpublished: June 11, 2002).
    41
      General Orders are permanent instructions, usually concerned with matters of policy or
    administration and issued in order form, that apply to all members of a command.
    Examples include orders restricting travel to or from a base and prohibitions on the use of
    alcohol.




    Page 28                                                   GAO-03-695 Military Operations
Oversight of Individual     DOD has established specific policies on how contracts, including those
Contracts at the Deployed   that support deployed forces, should be administered and managed.
Locations We Visited        Oversight of contracts ultimately rests with the contracting officer who
                            has the responsibility for ensuring that contractors meet the requirements
Appeared to Be Generally    set forth in the contract. However, most contracting officers are not
Sufficient                  located at the deployed locations. As a result, contracting officers appoint
                            monitors who represent the contracting officer at the deployed location
                            and are responsible for monitoring contractor performance. How
                            contracts and contractors are monitored at a deployed location is largely a
                            function of the size and scope of the contract. Contracting officers for
                            large scale and high value contracts such as the Air Force Contract
                            Augmentation Program, the Army’s Logistics Civil Augmentation Program,
                            and the Balkan Support Contract have opted to have personnel from the
                            Defense Contract Management Agency oversee contractor performance.
                            These onsite teams include administrative contracting officers who direct
                            the contractor to perform work and quality assurance specialists who
                            ensure that the contractors perform work to the standards written in the
                            contracts. For smaller contracts, contracting officers usually appoint
                            contracting officer’s representatives or contracting officer’s technical
                            representatives to monitor contractor performance at deployed locations.
                            These individuals are not normally contracting specialists and serve as
                            contracting officer’s representatives as an additional duty. They cannot
                            direct the contractor by making commitments or changes that affect price,
                            quality, quantity, delivery, or other terms and conditions of the contract.
                            Instead, they act as the eyes and ears of the contracting officer and serve
                            as the liaison between the contractor and the contracting officer.

                            At the locations we visited, we found that oversight personnel were
                            generally in place and procedures had been established to monitor
                            contractor performance, but some issues were identified. The officials we
                            spoke with expressed their satisfaction with contractor performance and
                            with the level of oversight provided for the contracts under their purview.
                            However, officials mentioned several areas where improvements to the
                            oversight process could be made. One area involved training of
                            contracting officer’s representatives. While the contracting officer’s
                            representatives we spoke with appeared to be providing appropriate
                            contract oversight, some stated that training before they assumed these
                            positions would have better prepared them to effectively oversee
                            contractor performance. The Defense Federal Acquisition Regulation
                            Supplement requires that they be qualified by training and experience
                            commensurate with the responsibilities to be delegated to them. However,
                            not all contracting officer’s representatives were receiving this training.
                            For example, most of the contracting officer’s representatives we met with


                            Page 29                                         GAO-03-695 Military Operations
    in Southwest Asia did not receive prior training. As a result, they had to
    learn on the job, taking several weeks before they could efficiently
    execute their responsibilities, which could lead to gaps in contractor
    oversight.

    Another area for improvement involved familiarization of commanders
    with using contractors. Several of the contracting officials we met with in
    the Balkans and Southwest Asia stated there was a lack of training or
    education for commanders and senior personnel on the use of contractors;
    particularly with regards to the directing of contractor activities and the
    roles of the contract monitors such as the Defense Contract Management
    Agency and contracting officer’s representatives, as illustrated in the
    following examples:

•   An Air Force commander sent a contractor from Kuwait to Afghanistan
    without going through the appropriate contracting officer. The contractor
    was ultimately recalled to Kuwait because the contract contained no
    provision for support in Afghanistan.
•   A Special Operations Command official told us commanders were
    unfamiliar with the Defense Contract Management Agency and believed
    that the agency represented the contractor and not the military.
•   An Army official told us that commanders sometimes do not know that
    they are responsible for requesting and nominating a contracting officer’s
    representative for contracts supporting their command.

    Some efforts are being made to address this issue. For example, U.S.
    Army, Europe includes contract familiarization during mission rehearsal
    exercises for Balkan deployments.

    We also found that the frequent rotation of personnel into and out of a
    theater of operation (particularly in Southwest Asia) resulted in a loss of
    continuity in the oversight process as incoming oversight personnel had to
    familiarize themselves with their new responsibilities. We previously
    reported on the impact of frequent rotations in and out of the theater.42 In
    response to a recommendation made in our 2000 report, the Defense
    Contract Management Agency changed its rotation policy. According to



    42
      U.S. General Accounting Office, Contingency Operations: Opportunities to Improve the
    Logistics Civil Augmentation Program, GAO/NSIAD-97-63, (Washington, D.C.: Feb. 11,
    1997) and U.S. General Accounting Office, Contingency Operations: Army Should Do
    More to Control Contract Costs in the Balkans, GAO/NSIAD-00-225 (Washington, D.C.:
    Sept. 29, 2000).




    Page 30                                                GAO-03-695 Military Operations
                                 officials whom we met with in the Balkans and Southwest Asia, the
                                 Defense Contract Management Agency now staggers the rotation of its
                                 contract administration officials at deployed locations such as the Balkans
                                 and Southwest Asia to improve continuity and oversight. However, the
                                 issue of personnel rotation and the impact on contractor oversight
                                 remains for other officials. For example, the program manager of a major
                                 Army contract in Qatar indicated that it would be beneficial if Army
                                 personnel overseeing the contract were deployed for a longer period of
                                 time in order to develop a more durable relationship. In addition, Air
                                 Force officials in Qatar indicated they were planning on increasing the
                                 number of longer-term deployments for key leadership positions, including
                                 contracting positions, to help alleviate some of their continuity issues.

                                 Some commands have established policies and procedures to provide
                                 additional tools to help manage contractors more efficiently, as in the
                                 following example:

                             •   U.S. Army, Europe established a joint acquisition review board during
                                 contingency operations. This board validates requirements for all
                                 proposed expenditures over $2,500. The board also determines if the
                                 requirement is best met using contractor support, host nation support, or
                                 troop labor. The policy stipulates that U.S. Army, Europe headquarters
                                 must review expenditures over $50,000.
                             •   U.S. Army, Europe has established standards for facilities and support to
                                 soldiers in contingency operations. These standards specify the level of
                                 quality of life support (i.e. type of housing, size of chapels, provision of
                                 recreational facilities, and other amenities) based on the number of U.S.
                                 troops at the deployed location. Variations from these standards have to
                                 be approved by the U.S. Army, Europe deputy commanding general.
                                 Officials told us these standards helped to limit the growth of contractor
                                 services.


Lack of Visibility Overall       Limited awareness by service and combatant command officials of all
Contractor Support               contractor activity supporting their operations can hamper their oversight
Hampers Broader                  and management responsibilities with regards to contractors supporting
                                 deployed forces. This limited awareness is due to the fact that the decision
Oversight                        to use contractors to provide support to a deployed location can be made
                                 by any number of requiring activities both within and outside of the area of
                                 operations. As discussed earlier, contracts to support deployed forces can
                                 be awarded by many organizations within DOD or by other federal
                                 agencies. Figure 3 illustrates the broad array of contractor services being
                                 provided in Bosnia and the government agency that awarded each



                                 Page 31                                          GAO-03-695 Military Operations
                                        contract. Bosnia is one of the few places we visited where contract
                                        information is collected centrally, giving the commander visibility over
                                        much of the contracting activity. Commanders at other locations we
                                        visited did not have this information readily available to them.

Figure 3: Contracts for Selected Services in Bosnia Are Awarded by Many Different Agencies




                                        Because the decision to use contractors is not coordinated at the regional
                                        combatant commands or the component commands other than in Bosnia,
                                        no one knows the totality of contractor support being provided to
                                        deployed forces in an area of operation.

                                        Despite the lack of visibility and involvement in decisions to use
                                        contractors, commanders are responsible for all the people in their area of



                                        Page 32                                              GAO-03-695 Military Operations
    responsibility, including contractor personnel. This lack of visibility over
    contractor personnel inhibits their ability to resolve issues associated with
    contractor support. Contractor visibility is needed to ensure that the
    overall contractor presence in a theater is synchronized with the combat
    forces being supported and that adjustments can be made to contractor
    support when necessary. Additionally, in order to provide operational
    support and force protection to participating contractors, DOD needs to
    maintain visibility of all contracts and contractor employees. When
    commanders lack visibility, problems can arise. For example, one
    contractor told us when his employees arrived in Afghanistan, shortly after
    the beginning of Operation Enduring Freedom, the base commander had
    not been informed that they were arriving and could not provide the
    facilities they needed to maintain the biological identification equipment
    that they were contracted to maintain. Also, the lack of visibility may
    inhibit a commander’s understanding of the impact of certain force
    protection decisions. For example, if there is an increased threat at a base
    and security is increased, third country nationals may be barred from
    entering the base. Third country nationals often provide services
    important to the quality of life of deployed soldiers, such as preparing and
    serving food and providing sanitation services. Without visibility over the
    totality of contractor support to his command, the commander may not
    know which support services rely heavily on third country nationals and is
    therefore less able to identify and mitigate the effects of losing that
    support.

    Limited visibility of all contractor activity can create a variety of problems
    for ground commanders. Commanders may not be aware of the total
    number of contractor personnel on their installations at any point in time
    or what they are doing there. In Southwest Asia this situation is further
    complicated by the fact that many of the contractor employees are third
    country nationals, which can increase security concerns. While many
    officials at sites we visited indicated that they maintain accountability for
    their contractors by tightly controlling the process by which contractors
    receive their identification badges, we found problems remained. As
    illustrated in the following examples:

•   In Kosovo, we found that badges were issued at multiple locations and
    provided access to multiple bases. This situation means a contractor
    employee could receive a badge at one site and come onto a different base
    without the base commander knowing who they were or why they were
    there.




    Page 33                                          GAO-03-695 Military Operations
•   Temporary badges (for visits of 30 days or less) at Eagle base in Bosnia
    have no pictures. The lack of photos means that anyone could use the
    badge to gain access to the base.
•   The contracting officer’s representative for a forward base in Kuwait told
    us that contractor personnel have simply shown up without any advance
    notification and that he had to track down other officials to determine why
    the contractors were there.
    Commanders may also be responsible for providing contractor employees
    with certain benefits and entitlements included in their contracts. The
    commanders’ ability to meet these requirements (including providing
    chemical and biological protective gear, military escorts, billeting, and
    medical support) is hindered by their lack of visibility over the totality of
    contractor presence on their base. In addition, commanders may not be
    able to account for all their contractor personnel in the event of an attack
    on a base. Similarly, should issues such as those concerning “Gulf War
    Syndrome”43 arise, DOD may be unable to determine if contractor
    personnel were in a location where they might have been exposed to
    potentially harmful substances. As a result, DOD may have no way to
    verify the claims of contractor personnel of health effects resulting from
    such exposure.

    We also found that, at some bases, commanders do not have copies of all
    the contracts in effect on their base, as the following examples illustrate:

•   U.S. Army Pacific Command officials told us it took several weeks for
    them to obtain the applicable contract terms to resolve questions
    regarding medical care for contractor employees in the Philippines
    because no one in the command had a copy of the contract.
•   In the Balkans, some contractors and federal agencies refused to provide
    copies of their contracts to the task force officials.

    We first reported this problem in May 2002.44 At that time we
    recommended that the Secretary of Defense direct all components to
    forward to the executive agent for operations in a geographical area, such
    as the Balkans, a copy of all existing and future contracts and contract
    modifications. DOD concurred with this recommendation and agreed to


    43
       “Gulf War Syndrome” is a non-scientific label that has frequently been used to describe
    those veterans who fought in the 1991 Persian Gulf War who later developed unexplained
    illnesses often characterized by fatigue, joint pain, skin rash, memory loss, and/or diarrhea.
    44
     U.S. General Accounting Office, Defense Budget: Need to Strengthen Guidance and
    Oversight of Contingency Operations Costs, GAO-02-450 (Washington, D.C.: May 21, 2002).




    Page 34                                                    GAO-03-695 Military Operations
              modify its Financial Management Regulation to require that a biannual
              report outlining the contracts be provided to the area executive agent.45
              The biannual report was limited, however, to contracts that used
              contingency appropriations for funding and did not include contracts that
              use a service’s base program funds. However, Balkans operations are no
              longer being funded using contingency funds and would therefore not be
              included under the new financial management regulation. As of April 15,
              2003, the change to the Financial Management Regulation had not been
              implemented. In addition, as we reported in May 2002, lack of visibility
              over contracts hinders DOD’s ability to compare contracts and identify
              potential duplication of services or ensure that contractors are only
              receiving those services to which they are entitled.


              Risk is inherent when relying on contractors to support deployed forces.
Conclusions   DOD recognized this risk when it issued DOD Instruction 3020.37, which
              requires the services to determine which contracts provide essential
              services and either develop plans for continued provision of those services
              during crises or assume the risk of not having the essential service.
              However, neither DOD nor the services have taken steps to ensure
              compliance with this instruction. While most contractors would likely
              deploy or remain in a deployed location if needed, there are many other
              reasons contractors may not be available to provide essential services.
              Without a clear understanding of the potential consequences of not having
              the essential service available, the risks associated with the mission
              increase.

              There are no DOD-wide policies on the use of contractors to support
              deployed forces. As a result there is little common understanding among
              the services as to the government’s responsibility to contractors and
              contractor personnel in the event of hostilities. This lack of understanding
              can cause confusion at the deployed location and makes managing
              contractors more difficult because commanders often have contractors
              from several services at their location with different requirements,
              understandings, and obligations.

              No standard contract language exists for inclusion in contracts that may
              involve contractors deploying to support the force. Therefore, we found



              45
                The executive agent is the service designated by the regional combatant commander to
              provide life support to the forces in an area of operation.




              Page 35                                                GAO-03-695 Military Operations
                      that contracts have varying and sometimes inconsistent language
                      addressing deployment requirements. For example, some contracts do not
                      contain any language related to the potential requirement to deploy while
                      others include only vague references to deployment. The lack of specific
                      language can require adjustments to the contract when deployment
                      requirements are identified. The need to negotiate contract adjustments in
                      the face of an immediate deployment can result in increased costs to the
                      government and may delay contractor support.

                      The lack of contract training for commanders, senior personnel, and some
                      contracting officer’s representatives can adversely affect the effectiveness
                      of the use of contractors in deployed locations. Without training, many
                      commanders, senior military personnel, and contracting officer’s
                      representatives are not aware of their roles and responsibilities in dealing
                      with contractors.

                      Most commanders at the locations we visited had only limited visibility
                      and limited understanding of the extent and types of services being
                      provided by contractors. The lack of visibility over the types and numbers
                      of contractors limits the contract oversight that can be provided and
                      hampers the commander’s ability to maintain accountability of
                      contractors. Without this visibility there is no assurance that commanders
                      understand the full extent of their operational support, life support, and
                      force protection responsibilities to contractors, and there is no way to
                      assure that contractors do not receive services they are not entitled to
                      receive. Additionally, without this visibility commanders cannot develop a
                      complete picture of the extent to which they are reliant on contractors to
                      perform their missions and build this reliance into their risk assessments.
                      Moreover, while DOD agreed to provide executive agents with a biannual
                      report outlining the contracts in use in a geographical location, it is not
                      clear that these reports, which are required for contracts funded with
                      contingency funds only, will provide sufficient information regarding the
                      services that contractors are providing to deployed forces and the support
                      and force protection obligations of the government to those contractors to
                      improve commanders’ visibility and understanding of contractor services
                      at their locations.


                      To promote better planning, guidance, and oversight regarding the use of
Recommendations for   contractors to support deployed forces, we recommend that the Secretary
Executive Action      of Defense take the following actions:




                      Page 36                                         GAO-03-695 Military Operations
•   Direct the heads of DOD components to comply with DOD instruction
    3020.37 by completing the first review of contracts to identify those
    providing mission essential services. This review should be completed by
    the end of calendar year 2004.
•   Direct the Undersecretary of Defense for Personnel and Readiness to
    develop procedures to monitor the implementation of DOD Instruction
    3020.37.
•   Develop DOD-wide guidance and doctrine on how to manage contractors
    that support deployed forces. The guidance should (a) establish baseline
    policies for the use of contractors to support deployed forces,
    (b) delineate the roles and responsibilities of commanders regarding the
    management and oversight of contractors that support deployed forces,
    and (c) integrate other guidance and doctrine that may affect DOD
    responsibilities to contractors in deployed locations into a single
    document to assure that commanders are aware of all applicable policies.
    Additionally, we recommend that the Secretary of Defense direct the
    service secretaries to develop procedures to assure implementation of the
    DOD guidance.
•   Develop and require the use of standardized deployment language in
    contracts that support or may support deployed forces. The Defense
    Federal Acquisition Regulation Supplement should be amended to require
    standard clauses in such contracts that are awarded by DOD and to
    address deployment in orders placed by DOD under other agencies’
    contracts. This language should address the need to deploy into and
    around the theater, required training, entitlements, force protection, and
    other deployment related issues.
•   Develop training courses for commanding officers and other senior
    leaders who are deploying to locations with contractor support. Such
    training could provide information on the roles and responsibilities of the
    Defense Contract Management Agency and the contracting officer’s
    representative and the role of the commander in the contracting process
    and the limits of the commanders’ authority. Also, contracting officers
    should ensure that those individuals selected as contracting officer’s
    representatives complete one of the established contracting officer’s
    representative training courses before they assume their duties.
•   To improve the commander’s visibility over, and understanding of, the
    extent and types of services being provided by contractors, the Secretary
    of Defense should direct the Under Secretary of Defense (Comptroller) to
    implement the changes to the department’s Financial Management
    Regulations previously agreed to with these modifications: (a) the
    Financial Management Regulations should specify that the biannual report
    include a synopsis of the services being provided and a list of contractor
    entitlements; (b) the report should include all contracts that directly
    support U.S. contingency operations including those funded by the



    Page 37                                        GAO-03-695 Military Operations
                     services base program accounts; and (c) the changes should be finalized
                     by January 1, 2004.


                     In written comments on a draft of this report, DOD agreed fully with three
Agency Comments      of our recommendations and agreed in part with three others. The
and Our Evaluation   department’s comments are reprinted in appendix II.

                     DOD agreed with our recommendations that it develop (1) procedures to
                     monitor the implementation of DOD Instruction 3020.37, (2) DOD-wide
                     guidance and doctrine on how to manage contractors that support
                     deployed forces, and (3) standardized deployment language for contracts
                     that support or may support deployed forces.

                     Although DOD agreed with our recommendation regarding the need for
                     the heads of DOD components to complete the first review of contracts to
                     identify those providing mission essential services, it expressed concerns
                     that the components might not be able to complete this review by the end
                     of calendar year 2003. We amended out recommendation to incorporate
                     this concern by extending the recommended completion date to the end of
                     calendar year 2004. We believe a completion date is important to provide
                     some sense of urgency. DOD also stated that the effort needed to obtain
                     information on contracts currently in place may outweigh possible
                     benefits and suggested alternative methods for conducting this review,
                     including the possibility of only reviewing new contracts. However, DOD
                     Instruction 3020.37 requires a review of all contracts, and we continue to
                     believe that a review that fails to include all contracts would not
                     adequately address the issues that the instruction was designed to
                     resolve—identifying essential services provided by contractors to
                     deployed forces and ensuring the continuation of those services should
                     contractors not be available.

                     DOD also agreed with our recommendation that appropriate training
                     should be developed for commanding officers and other senior leaders
                     who are deploying to locations with contractor support. However, DOD
                     stated that while Web-based training may be the appropriate medium for
                     such training, in some cases, alternative methods could be more
                     beneficial. We accepted DOD’s suggestion and amended the
                     recommendation accordingly.

                     DOD agreed with our recommendation concerning changes to the
                     department’s Financial Management Regulations. However, DOD
                     questioned the utility of a part of this recommendation that called for the


                     Page 38                                         GAO-03-695 Military Operations
biannual report to include a list of contractor entitlements as well as all
contracts that directly support U.S. contingency operations, including
those funded by the services’ base program accounts. DOD stated that the
costs of making these changes to the system and collecting additional
information could outweigh the perceived benefits. Further, DOD stated
that the lack of collecting this information has not jeopardized the
operation of any DOD mission in recent memory. DOD stated that other,
less burdensome ways to ensure combatant commanders have all the
necessary information for contractors that are supporting them need to be
fully explored before pursuing more burdensome means, such as a costly
centralized database. DOD said it would review this issue with the
military departments to determine if obtaining the recommended
information would be cost effective.

We do not believe this recommendation would be costly or burdensome to
implement. As noted in the report, the Under Secretary of Defense
(Comptroller) has already agreed to amend DOD’s Financial Management
Regulations to require that the components provide a biannual report
outlining the existing and future contracts and contract modifications to
the executive agent for operations in a geographic area, including a
synopsis of services being provided. We believe that since the components
will already be asked to provide the biannual reports, asking them to
provide additional information summarizing contractor entitlements
specified under those contracts would not substantially increase the effort
required to generate these reports. This additional information would
facilitate DOD’s efforts to ensure that contractors receive only the services
from the government to which they are contractually entitled. While DOD
expressed concern about developing a costly centralized database to
generate these reports, our recommendation contained no guidance on
how the reports should be generated and makes no mention of a
centralized database. We agree that DOD should look for the most cost-
effective way to implement the recommendation. We also continue to
believe that the biannual report should include information from contracts
that directly support U.S. contingency operations but are funded from the
services’ base program accounts. As noted in the report, this would
include contracts supporting operations in the Balkans. We do not believe
that these contracts should be excluded from the report. While we did not
find evidence that any DOD missions were jeopardized by not having
information summarizing contractor services and entitlements, our
recommendation was based on concerns raised by field commanders
about oversight of contractors and the appropriate provisioning of support
to contractors. As noted in the report, several commanders in the field told
us their limited visibility of the extent and types of services being provided


Page 39                                          GAO-03-695 Military Operations
by contractors created challenges for them. We continue to believe that
without a more thorough understanding of contractor support,
commanders will continue to face difficulties in identifying potential
duplication of services or ensuring that contractors are only receiving
those services to which they are entitled. Therefore, we still believe the
recommendation in its entirety has merit.

We are sending copies of this report to the Chairman and the Ranking
Minority Member, Subcommittee on Readiness, House Committee on
Armed Services; other interested congressional committees; the Secretary
of Defense; and the Director, Office of Management and Budget. We will
also make copies available to others on request. In addition, the report will
be available at no charge on the GAO Web site at http://www.gao.gov.

If you or your staff have any questions, please contact me on
(757) 552-8111 or by E-mail at curtinn@gao.gov. Major contributors to this
report were Steven Sternlieb, Carole Coffey, James Reid, James Reynolds,
and Adam Vodraska.




Neal P. Curtin
Director, Defense Capabilities and Management




Page 40                                          GAO-03-695 Military Operations
             Appendix I: Scope and Methodology
Appendix I: Scope and Methodology


             To identify the types of services contractors provide to deployed U.S.
             forces we met with officials at the Department of Defense (DOD) who
             have responsibility for identifying contractor needs, issuing contracts,
             managing contracts once they are executed, and utilizing contractors to
             fulfill their missions. Because there was no consolidated list of contractors
             supporting deployed forces we asked DOD officials at the commands and
             installations we visited to identify their contractor support. These
             commands included the Central, European, and Pacific Commands and
             most of their service components and major installations in Bosnia,
             Kosovo, Kuwait, Qatar, and Bahrain. We focused our efforts in the Balkans
             and Southwest Asia because they provide a broad range of contractor
             support activities. We were completing our work as the 2003 war with Iraq
             began and so were unable to fully ascertain the extent of contractor
             support to U.S. forces inside Iraq. The scope of our review included
             system and theater support contracts. We also met with officials of
             selected contracting commands in the Air Force, Army, and Navy and at
             defense agencies including the Defense Logistics Agency. These officials
             included contracting officers and, where applicable, their representatives
             at deployed locations. We examined a wide range of contracts in order to
             assess the diversity of contractor support. While visiting deployed
             locations we met with representatives of the different DOD components
             and contractors stationed there to determine what contractor services are
             used to accomplish their missions.

             To assess why DOD uses contractors to support deployed forces, we
             reviewed DOD studies and publications and interviewed DOD and
             contractor officials. We met with unit commanders during our visits to
             deployed locations to discuss the effects using contractors had on military
             training. We did not, however, compare the cost of contractors versus
             military personnel; make policy judgments as to whether the use of
             contractors is desirable; or look at issues related to government liability to
             contractors.

             To assess DOD’s efforts to identify those contractors that provide mission
             essential services and to maintain essential services if contractors are
             unable to do so, we reviewed applicable DOD Inspector General reports as
             well as DOD and its components’ policies, regulations, and instructions for
             ensuring the continuation of essential services. In particular, we reviewed
             DOD Instruction 3020.37, which sets forth the policies and procedures for
             identifying mission essential services and the steps necessary to assure the
             continuation of such services. We held discussions with command,
             service, and installation officials on the extent to which the required
             review of contracts to identify mission essential services had been


             Page 41                                          GAO-03-695 Military Operations
    Appendix I: Scope and Methodology




    conducted and on their backup planning should contractors not be able to
    perform such services for any reason. We also met with officials of the
    office responsible for monitoring implementation to ascertain what efforts
    they have undertaken. We reviewed the pertinent unclassified sections,
    related to contractor support, of operations plans for Iraq and the Balkans.
    We also discussed with deployed contractor employees their opinions of
    the extent of their responsibilities to continue to support military forces in
    crisis situations.

    To assess the adequacy of guidance and oversight mechanisms in place to
    effectively manage contractors who support deployed forces we reviewed
    DOD’s and its components’ policies, regulations, and instructions that
    relate to the use of contractors that support deployed forces. We met with
    officials at all levels of command to gain an understanding of contracting
    and the contract management and oversight processes. At the locations we
    visited, we asked officials their opinions of the effectiveness of existing
    policy in helping them manage their contractor force and asked them for
    suggested areas of improvement. We also reviewed and discussed with
    them local policies and procedures for managing their contractors. We met
    with DOD’s contract management officials as well as other military
    members to obtain their opinions of the quality of contractor-provided
    services and the quality of contract oversight. We also met with contractor
    representatives to discuss contract oversight and contract management
    from their perspective. Finally, we reviewed contracts that support
    deployed forces to assess the existence and adequacy of deployment
    language.

    The DOD organizations we visited or contacted in the United States were

    Office of the Secretary of Defense

•   Office of the Under Secretary of Defense for Acquisition, Technology, and
    Logistics, Washington, D.C.
•   Civilian Personnel Management Service, Arlington, Va.

    Chairman, Joint Chiefs of Staff

•   J-4 Logistics, Washington, D.C.

    Department of the Army

•   Headquarters, Washington, D.C.




    Page 42                                          GAO-03-695 Military Operations
    Appendix I: Scope and Methodology




•   Assistant Secretary of the Army (Acquisition, Logistics, and Technology),
    Falls Church, Va.
•   Office of the Judge Advocate General, Rosslyn, Va.
•   Army Contracting Agency, Falls Church, Va.
•   U.S. Army Forces Command, Headquarters, Ft McPherson, Ga.
•   3rd Army Headquarters, Ft McPherson, Ga.
•   4th Infantry Division, Ft. Hood Tex.
•   Corps of Engineers, Headquarters, Washington, D.C.
    • Corps of Engineers, Transatlantic Programs Center, Winchester, Va.
•   Combined Arms Support Command, Ft. Lee, Va.
•   Communications-Electronics Command, Ft. Monmouth, N.J.
•   Training and Doctrine Command, Ft, Monroe, Va.
•   Operations Support Command, Rock Island, Ill.
    • Logistics Civil Augmentation Program, Program Office, Rock Island, Ill.
•   Army Materiel Command, Alexandria, Va.
•   Network Enterprise Technology Command, Ft. Huachuca, Ariz.

    Department of the Navy

•   Headquarters, Washington, D.C.
•   Naval Air Systems Command, Patuxent River, Md.
    • Naval Air Technical Data and Engineering Service Command, San
       Diego, Calif.
•   Naval Sea Systems Command, Washington, D.C.
•   Space and Naval Warfare Systems Command, San Diego, Calif.

    Department of the Air Force

•   Office of the Assistant Secretary of the Air Force for Acquisition, Rosslyn,
    Va.
•   Air Force Materiel Command, Dayton, Ohio
    • F-117 Special Projects Office, Dayton, Ohio
•   Air Force Civil Engineer Support Agency, Tilden Air Force Base, Fla.

    Defense Agencies

•   Defense Logistics Agency, Ft. Belvoir, Va.
    • Defense Energy Support Center, Ft. Belvoir, Va.
•   Defense Contract Management Agency, Alexandria, Va.
•   Defense Contract Audit Agency, Ft. Belvoir, Va.


    The geographic combatant commands and component commands we
    visited or contacted were



    Page 43                                         GAO-03-695 Military Operations
    Appendix I: Scope and Methodology




•   U.S. Central Command,
    • U.S. Army Forces Central Command
    • U.S. Naval Forces Central Command
    • U.S. Central Command Air Forces
    • U.S. Marine Forces Central Command

•   U.S. European Command,
    • U.S. Army, Europe
    • U.S. Air Forces in Europe

•   U.S. Pacific Command
•   U.S. Army Pacific
•   Pacific Air Forces
•   Special Operations Command Pacific
•   U.S. Marine Forces Pacific
•   U.S. Pacific Fleet
    • Naval Surface Forces, U.S. Pacific Fleet
    • Naval Air Forces, U.S. Pacific Fleet
    • Submarine Force, U.S. Pacific Fleet

    The overseas activities and contractors we visited, by country, were

    Bahrain

    •   Naval Support Activity
    •   Naval Regional Contracting Center
    •   USS Cardinal, MHC 60

    Bosnia-Herzegovina

•   Eagle Base, U.S. Army
    • Task Force Eagle, Area Support Group Eagle
    • Defense Contract Management Agency

•   Eagle Base, Contractors
    • Mantech
    • Sprint
    • ITT

    Germany

    •   Defense Contract Audit Agency, Wiesbaden
    •   Defense Contract Management Agency, Stuttgart
    •   Defense Energy Support Center, Wiesbaden


    Page 44                                        GAO-03-695 Military Operations
    Appendix I: Scope and Methodology




    •   Defense Logistics Agency, Wiesbaden
    •   Army Materiel Command Europe, Heidelberg

    Serbia and Montenegro
    Province of Kosovo

•   Camp Bondsteel, U.S. Army
    • Task Force Falcon, Area Support Group Falcon
    • Defense Contract Management Agency
    • Army Materiel Command

•   Camp Bondsteel, Contractors
    • TRW
    • Kellogg, Brown & Root Services
    • Premiere Technology Group
    • Engineering and Professional Services, Incorporated

•   Camp Monteith, U.S. Army
    • 1st Infantry Division

    Kuwait

•   Camp Doha, U.S. Army
    • U.S. Army Kuwait
    • Army Corps of Engineers
    • Army Materiel Command
    • Defense Contract Management Agency
    • Coalition Forces Land Component Command

•   Camp Doha, Contractors
    • KGL
    • Raytheon Aerospace
    • British Link Kuwait
    • CSA

•   Ahmed Al Jaber Air Base, U.S Air Force
    • 332nd Air Expeditionary Wing

•   Ahmed Al Jaber Air Base, Contractors
    • RMS
    • Dyncorp
    • Vinnell
    • ITT
    • Mutual Telecommunications Services



    Page 45                                     GAO-03-695 Military Operations
    Appendix I: Scope and Methodology




•   Ali Al Salem Air Base, U.S. Air Force
    • 386th Air Expeditionary Wing

•   Ali Al Salem Air Base, Contractors
    • Dyncorp
    • L3 Communications
    • TRW
    • General Atomics
    • Litton Integrated Systems
    • Anteon
    • RMS

    Qatar

•   U.S. Embassy, Doha, Qatar

•   Camp As Sayliyah, U.S. Army
    • U.S. Army Forces Central Command-Qatar
    • U.S. Army Materiel Command
    • Defense Contracting Audit Agency

•   Camp As Sayliyah, Contractors
    • ITT
    • Dyncorp
    • Stanley Associates
    • LESCO

•   Al Udeid Air Base, U.S. Air Force
    • 379th Air Expeditionary Wing
    • Air Force Civil Augmentation Program, Program Office

•   Al Udeid Air Base, Contractors
    • Dyncorp

    We conducted our review between August 2002 and April 2003 in
    accordance with generally accepted government auditing standards.




    Page 46                                      GAO-03-695 Military Operations
                Appendix II: Comments from the Department
Appendix II: Comments from the Department
                of Defense



of Defense




Now on p. 26.




                Page 47                                     GAO-03-695 Military Operations
                Appendix II: Comments from the Department
                of Defense




Now on p. 35.




Now on p. 35.




                Page 48                                     GAO-03-695 Military Operations
                    Appendix II: Comments from the Department
                    of Defense




Now on pp. 35-36.




Now on p. 36.




Now on p. 36.




                    Page 49                                     GAO-03-695 Military Operations
                Appendix II: Comments from the Department
                of Defense




Now on p. 36.




(350239)
                Page 50                                     GAO-03-695 Military Operations
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