These contractors provide security services for a  variety of U.S. government agencies in Iraq; however, they principally are  hired by DOD and the State Department. DOD and the State Department Have Increased Oversight Efforts Regarding PSCs, but Staffing and Training Challenges Remain for DOD

DOD and the State Department have both taken action to increase their  oversight efforts over PSCs in Iraq, however, staffing and training  challenges remain for DOD. However, senior military staff as well  as units may not be aware of their increased responsibilities because DOD  has not incorporated information on the revised guidance and increased  responsibilities in its training program. Further, while DOD has increased  the number of personnel in Iraq devoted to providing contract oversight  and management over private security contracts it is not clear based on  our current and past work whether DOD can sustain the increased number  of contract oversight and management personnel it has sent to Iraq since  late 2007. In addition, the State Department has implemented 11 of the 18  recommendations made by a panel appointed by the Secretary of State to  review the agency’s oversight of PSCs in Iraq. However the Department may be challenged to continue to  provide the increased number of personnel needed to sustain the  additional oversight. To assist in its greater role in Iraq to provide contract award,  administration and oversight, JCC-I/A plans to add additional personnel in  Iraq while DCMA has increased its number of oversight personnel in Iraq  and hopes to add additional personnel. DCMA has approximately doubled  the number of oversight personnel in the CENTCOM area of responsibility  by shifting personnel from other areas. The State  Department has acknowledged that it does not have sufficient numbers of  diplomatic security agents to meet the agency’s security requirements and  as a result relies on and will continue to rely on private security  contractors to provide additional capacity. For example, since the Nisour Square incident in late 2007,  the agencies have increased interagency coordination of their PSC  movements in Iraq through liaison officers and other means. MNF-I’s Armed Contractor Oversight Division has  also been coordinating efforts related to PSC oversight and accountability  among DOD, the State Department, the Government of Iraq, and the PSC  community in Iraq. Interagency Coordination Has Improved between DOD and the Department of State and between the U.S. Government and the Government of Iraq

Prior to the Nisour Square incident, DOD and the State Department did not  maintain regular communication or coordination on the departments’  efforts related to PSCs in Iraq, and neither DOD nor the State Department  coordinated on a regular basis with the Government of Iraq on issues  related to PSCs. An Overview of the Legal Framework for Holding Private Security Contractor Employees Accountable for Their Actions in Iraq

Various laws exist to hold PSC employees accountable for criminal acts  committed in a wartime environment beyond the borders of the United  States. These laws include U.S. criminal laws that may be applied  extraterritorially, the Military Extraterritorial Jurisdiction Act (MEJA),  the Uniform Code of Military Justice (UCMJ), international law, as well  as Iraqi laws. DOD stated that it is actively incorporating  contractors and contract support into the exercise schedules. Additionally, we met with military officials from the Office of the Under  Secretary of Defense, Acquisition, Technology, and Logistics; Office of the  Secretary of Defense, Office of the General Counsel, U.S. Central  Command; and the U.S. Army Corps of Engineers; officials from the State  Department, including the Bureau of Diplomatic Security, Office of  Acquisitions Management, and the Office of the Legal Advisor, and the U.S.  Agency for International Development to discuss oversight, coordination,  and accountability of PSCs in Iraq. Appendix II: Implementation Status of Recommendations from the Secretary of State’s Panel on Personal Protective Services in Iraq

According to State Department officials, the department has also begun to  implement other recommendations made by the panel including the  installation of audio and video recording equipment in security vehicles  and the creation of an eight person unit to investigate any reported and  alleged incidents involving State Department PSCs including those  involving injuries or death. GAO Comments

1. 2.
Why GAO Did This Study

The U.S. government relies extensively on private security contractors (PSC) for a variety of security services. However, incidents involving PSCs have raised concerns about oversight and legal accountability. Under the authority of the Comptroller General and in response to continuing congressional interest, GAO performed this review to examine the extent to which the Department of Defense (DOD) and Department of State have strengthened (1) oversight and (2) coordination of private security contractors in Iraq. GAO is also providing information on the legal framework used to hold private security contractor employees legally accountable for their actions in Iraq. GAO reviewed DOD and State Department policies and guidance, and their memorandum of agreement on PSCs; observed operations in Iraq and met with DOD officials there and in the U.S.; and met with officials from the Departments of Justice and State, and private security contractors.

What GAO Found

Both DOD and the State Department have taken steps to strengthen oversight of private security contractors in Iraq since September 2007. However, staffing and training challenges remain for DOD. DOD has increased the number of personnel in Iraq assigned to provide oversight for DOD's PSCs but has not developed plans or a strategy to sustain this increase. An Army-commissioned report has specifically raised concerns about the lack of personnel available to provide sufficient contracting support to either expeditionary or peacetime missions. In the short term, DOD has increased the number of oversight personnel in Iraq by shifting existing oversight personnel from other locations into Iraq. However, without developing and implementing a strategy for providing and sustaining an increased number of personnel dedicated to oversight of PSCs, it is not clear whether DOD can sustain this increase because of the limited number of oversight personnel in the workforce. Moreover, while DOD has provided some training on PSCs for units deploying, the training has not been updated to reflect the changes made by DOD since September 2007 to increase oversight. As a result, military units may be unaware of their expanded oversight and investigative responsibilities. The State Department has implemented 11 of 18 actions recommended in October 2007 by a panel tasked by the Secretary of State with reviewing that agency's use of private security contractors in Iraq. For example, the State Department has increased the number of diplomatic security personnel stationed in Iraq to provide oversight of contractor activities and has requested and received funding to hire and train 100 additional agents to replace those who were transferred from other State Department programs in the United States to Iraq. According to State Department officials, the additional personnel will help sustain the increased number of agents in Iraq. In addition, as of June 2008, the State Department has equipped 140 of its security vehicles with video recording equipment and plans to equip an additional 93 vehicles. Coordination among DOD, the State Department, and the government of Iraq has significantly improved since September 2007. The State Department coordinates its PSC movements with DOD through liaison officers, and by providing a daily briefing to Multi-National Forces-Iraq (MNF-I) on upcoming PSC activities. MNF-I 's Armed Contractor Oversight Division facilitates coordination for PSC matters among DOD, State Department, the government of Iraq, and the PSC community. Further, DOD and the State Department signed a memorandum of agreement detailing coordination activities to be undertaken. Various laws hold PSC employees accountable for their actions in Iraq, including U.S. criminal laws that may be applied extraterritorially, the Military Extraterritorial Jurisdiction Act, and the Uniform Code of Military Justice. The applicability of these laws depends on the circumstances--e.g., the nature and location of the alleged crime and the nationality of the accused--of any specific incident. The legal framework for holding PSCs accountable also includes Iraqi and international law and contract provisions.