	Background

The Department of Defense (DOD) has often relied upon contractors to support military operations. Managing Contractors During Contingency Operations

Lack of sufficient contract management can prevent troops from receiving needed support and lead to wasteful spending. In addition, some analysts believe that lax contractor oversight may lead to contractor abuses, which can undermine U.S. counter-insurgency efforts. DOD is implementing the Synchronized Predeployment and Operational Tracker (SPOT), which is designed to track and monitor contractor personnel within a contingency operation. A number of analysts have raised questions about the reliability of the data gathered by DOD. DOD officials have acknowledged data shortcomings and have stated that they are working to improve the reliability and the type of data gathered. Despite this policy, DOD has trended away from using local nationals as contractor personnel in Afghanistan and Iraq. DOD Contract Obligations

According to the Federal Procurement Data System – Next Generation (FPDS), DOD obligated approximately $27.2 billion on contracts in the Afghanistan and Iraq theaters of operations in FY2010, representing 17% of DOD's total war obligations in the Afghanistan and Iraq theaters of operations. Contractors in Afghanistan

			Number of Contractors

As reflected in Table 1 , according to DOD, as of March 2011, there were 90,339 DOD contractor personnel in Afghanistan, compared to approximately 99,800 uniformed personnel. Contractors made up 48% of DOD's workforce in Afghanistan (see Figure 4 ). This compares to December 2008, when contractors represented 69% of DOD's workforce in Afghanistan. DOD Contract Obligations

According to FPDS, DOD obligated approximately $11.8 billion on contracts in the Afghanistan theater of operations in FY2010, representing 15% of total obligations in the Afghanistan in the area. From FY2005-FY2010, DOD obligated approximately $33.9 billion on contracts primarily in the Afghanistan theater, representing 16% of total DOD obligations for operations in that area (see Figure 6 . Contractors in Iraq

			Number of Contractors

As reflected in Table 1 (above), according to DOD, as of March 2011, there were approximately 64,000 DOD contractor personnel in Iraq compared to 46,000 uniformed personnel in-country. Contractors made up approximately 58% of DOD's workforce in Iraq. Both contractor and troop levels have decreased every quarter for more than two years (see Figure 7 ). From FY2005 to FY2010, DOD obligated approximately $112.8 billion on contracts primarily in the Iraq theater of operations, representing 19% of total obligations for operations in Iraq. In light of DOD's experiences in Afghanistan and Iraq, and in response to legislation and the findings of numerous studies (including the Gansler Report, GAO reports, and Special Inspector General for Iraq Reconstruction reports), DOD has taken a number of steps to try to improve how it manages contractors in Afghanistan and Iraq. These efforts have included organizational changes such as setting up the Joint Contracting Command to provide a more centralized contracting support and management system; implementing regulatory and policy changes aimed at improving management; improving training for uniformed personnel on how to manage contractors; and increasing the size of the acquisition workforce in theater. A number of these initiatives have been reflected in or were the result of legislation.
The critical role contractors play in supporting military operations in Afghanistan and Iraq necessitates that the Department of Defense (DOD) effectively manage contractors during contingency operations. Lack of sufficient contract management can delay or even prevent troops from receiving needed support and can also result in wasteful spending. Some analysts believe that poor contract management has played a role in permitting abuses and crimes committed by certain contractors against local nationals, which may have undermined U.S. counterinsurgency efforts in Afghanistan and Iraq.
DOD relies extensively upon contractors to support overseas contingency operations. As of March 2011, DOD had more contractor personnel in Afghanistan and Iraq (155,000) than uniformed personnel (145,000). Contractors made up 52% of DOD's workforce in Afghanistan and Iraq. Since December 2009, the number of DOD contractors in Afghanistan has exceeded the number in Iraq.
According to DOD, in Afghanistan, as of March 2011, there were 90,339 DOD contractor personnel, compared to approximately 99,800 uniformed personnel. Contractors made up 48% of DOD's workforce in Afghanistan at that time. This compares to December 2008, when contractors represented 69% of DOD's workforce in Afghanistan. According to DOD data, the recent surge of uniformed personnel in Afghanistan and the increase in contract obligations did not result in a corresponding increase in contractor personnel.
DOD obligated approximately $11.8 billion on contracts performed primarily in the Afghanistan theater of operations (including surrounding countries) in FY2010, representing 15% of total DOD obligations for the area. From FY2005-FY2010, DOD obligated approximately $33.9 billion on contracts for the Afghanistan theater, representing 16% of total DOD obligations for the area.
According to DOD, in Iraq, as of March 2011, there were 64,253 DOD contractor personnel in Iraq compared to 45,660 uniformed personnel in-country. Contractors made up 58% of DOD's workforce in Iraq. Contractor and troop levels have decreased every quarter for the last nine quarters. DOD obligated approximately $15.4 billion on contracts in the Iraq theater in FY2010, representing 20% of total DOD obligations for the area. From FY2005-FY2010, DOD obligated approximately $112.1 billion on contracts for the Iraq theater of operations, representing 19% of total DOD obligations for the area.
A number of analysts have questioned the reliability of DOD's contractor data. DOD officials have acknowledged data shortcomings and have stated that they are working to improve the reliability and the type of data gathered. DOD is implementing a database to track and monitor contractor personnel during a contingency operation. DOD has also taken a number of steps to try to improve how it manages contractors in Afghanistan and Iraq, including efforts to centralize contracting support and management; implement regulatory and policy changes, train uniformed personnel on how to manage contractors; and increase the size of the acquisition workforce in theater. A number of these initiatives have been reflected in or were the result of legislation.
This report provides a detailed analysis of contractor personnel trends and contracting dollars obligated in U.S. Central Command (CENTCOM), Afghanistan, and Iraq.