Commission on Wartime Contracting

COMMISSION ON WARTIME CONTRACTING

The unprecedented level of privatization of U.S. operations in Iraq and Afghanistan left tens of billions of taxpayer dollars exposed to waste, fraud, abuse, and mismanagement. Since taking office in 2007, I have been successful in securing new oversight mechanisms to fix the systemic deficiencies that exist in inter-agency wartime contracting, thus achieving greater accountability.



Comprehensive Contingency Contracting Reform Act of 2012 (S.2139)

On March 1, 2012, Senator Claire McCaskill (Mo.) and I introduced comprehensive reform legislation to address the findings of the U.S. Commission on Wartime Contracting in Iraq and Afghanistan. The bill marks a pivotal moment in a five-year fight to address failures in the management and oversight of federal contracting in Iraq and Afghanistan that allowed waste, fraud, and abuse to flourish. The comprehensive reform legislation builds on the recommendations of the U.S. Commission on Wartime Contracting in Iraq and Afghanistan—an independent, bipartisan panel that was created through legislation we introduced in 2007.

This legislation affirms the important work that has been done by the great majority of our wartime-support contractors. At the same time it recognizes the necessity to improve government management and accountability in the contracting process that resulted in unacceptable costs, excessive waste, and substandard performance in far too many areas. My principle focus in these reforms has been to streamline governmental processes in the Defense Department, State Department and USAID in order to improve the efficiencies of this essential practice.

The Comprehensive Contingency Contracting Reform Act of 2012 (S.2139)—which is available online here—would strengthen contracting practices and improve accountability across the federal government by:
  • Elevating oversight responsibility, improving management structures, expanding planning requirements, and reforming contracting practices during overseas military contingencies;
  • Requiring the government to identify how it will pay for military operations overseas;
  • Improving the contracting process through greater transparency, competition, and professional education;
  • Instituting additional provisions for contractor accountability.

The Comprehensive Contingency Contracting Reform Act of 2012 would also increase the authority, responsibilities and involvement of inspectors general during contingency operations, decrease reliance on no-bid contracts, and strengthen the requirements for suspension and debarment officials in the Defense Department, the military departments, State Department, and USAID. The legislation would require U.S. combatant commanders, in consultation with the secretaries of the Defense Department and State Department, to perform a risk analysis prior to the use of private security contractors.  Other provisions in the bill would require automatic suspension for contractors where there has been an allegation of civil or criminal fraud.

As a member of the Senate Armed Services Committee, I plan to continue gathering input on the proposals and hope to seek a vote on our legislation this year.

Background on the Commission (2008-2011):

In January 2008, Congress and the White House approved a measure that I introduced with Senator McCaskill to establish a bipartisan Commission on Wartime Contracting. Modeled after the Truman Committee of World War II, the Commission examined the impact of the government’s growing reliance on civilian contractors to perform wartime functions. The Commission held hearings and investigated contracting issues involving both the Department of Defense and the Department of State, including the transfer of responsibility for U.S. operations in Iraq.

In August 2011, the Commission completed its efforts and presented its final report (which is available here). The Commission estimated that waste and fraud have amounted to between $31 and $60 billion during operations in Iraq and Afghanistan. The final report also warns that additional waste may occur if host countries do not sustain U.S.-funded projects and programs after the U.S. hands them over or reduces its support.

The Secretary of Defense has already taken steps to address time-sensitive concerns outlined in an interim Commission report in 2009.  The Commission’s final report makes additional recommendations, including:
    • improving federal planning for use of contracts,
    • strengthening contract management and oversight,
    • expanding competition,
    • improving interagency coordination, and
    • modifying or canceling U.S.-funded projects that host nations cannot sustain.

The U.S. Congress will continue to listen to and, when appropriate, act on these recommendations. 

Additionally, the Government Accountability Office (GAO) is reviewing how well federal agencies have responded to address the Commission’s recommendations.  The GAO review will be completed later this year.

This is the way that Congressional commissions should work. It was bipartisan, high energy, and composed of highly qualified people who were brought in for a specific period of time on this sunsetted commission and who will continue to maintain significant roles in the community now that the Commission has done its work.

The Commission significantly increased transparency and accountability and will potentially save taxpayers billions of dollars in addition to savings already achieved by corrective action taken at the Department of Defense and other agencies.
MATERIALS & RESOURCES

Video of Senator Webb's remarks on the reform legislation
Senator Webb Remarks on the Commission's Final Report, August 2011
Final Report of the U.S. Commission on Wartime Contracting in Iraq and Afghanistan
Commission Background Information and Chronology Summary