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Summary:
This report examines logistical support contracts for troop support services in Iraq primarily administered through the U.S. Army's Logistics Civil Augmentation Program (LOGCAP). LOGCAP is an initiative designed to manage the use of civilian contractors that perform services during times of war and other military mobilizations. It provides for the awarding of contingency, or bridging contracts, as well as the inclusion of contingency clauses in peacetime contracts. In June 2007 the Army Sustainment Command (ASC) awarded LOGCAP IV contracts to three companies - DynCorp International LLC, Fort Worth, TX; Fluor Intercontinental, Inc, Greenville, SC; and KBR, Houston, TX, through a full and open competition. The losing companies filed protests with the Government Accountability Office (GAO). GAO sustained the protests on October 5, 2007 and as a result the Army reopened the competition. On April 18, 2008, DOD announced that the Army had settled the competition and re-awarded contracts to the original three companies. The LOGCAP IV contract calls for the three companies to compete for task orders; each company may be awarded up to $5 billion for troop support services per year, the Army could award a maximum annual value of $15 billion, and the maximum contract value was $150 billion. The second session of the 110th Congress may examine several bills to ensure proper accountability and oversight in federal contracting. The Fiscal Year (FY) 2008 Defense Authorization Act (P.L. 110-181) contains provisions that address contract waste, fraud, abuse, and mismanagement. Other provisions in the act require the Secretary of Defense to provide a plan for addressing skill shortfalls in the DOD acquisition workforce; provide for a periodic and independent management review of DOD contracts; prohibit the awarding of sole source contracts and noncompetitive grants; and establish a commission on wartime contracting to investigate contracts in Iraq and Afghanistan. Additional legislative initiatives could if enacted impact defense contracting. The House and Senate have proposed several bills, including H.R. 528, Iraq Contracting Fraud Review Act of 2007; H.R. 3033, Contractors and Federal Spending Accountability Act of 2008; H.R. 3695, Freeze Private Contractors in Iraq Act; H.R. 3928, Government Contractor Accountability Act of 2007; H.R. 4102/S. 2398, Stop Outsourcing Security Act; H.R. 4881, Contracting and Tax Accountability Act of 2008; H.R. 5712, Close the Contractor Fraud Loophole Act, and S. 674, Transparency and Accountability in Military and Security Contracting Act of 2007. This report will be updated as warranted.
