The Army must do a better job managing an unprecedented $2.2 billion service contract that supports troops in the Balkans, according to a new General Accounting Office report.
Since 1995, the Army has contracted with Brown and Root Services of Houston, Texas, to provide logistical support-ranging from mail delivery to base construction-for thousands of troops stationed in the Balkans. With the downsizing of the armed forces, the Army and the other services are increasingly relying on contractors for support work so troops can be free for battle.
The Army's contract was the first and largest deal signed with a contractor for support in contingency operations. Brown and Root is a subsidiary of Halliburton Co. of Houston, which was headed by Republican Vice Presidential candidate Richard Cheney from 1995 until this summer.
In a Sept. 29 GAO report, titled "Army Should Do More to Control Contract Cost in the Balkans" (NSIAD-00-225), auditors found the Army must do a better job of evaluating the costs of services provided by Brown and Root and set specific performance goals for the contractor. Also, GAO said, the Army must improve job training for employees who oversee the contract.
"We found a widespread view among the Army and other Defense Department agencies' officials in the Balkans that they had little control over the contractor's actions once it was authorized to perform tasks," the report says.
The Army is already taking steps to cut contract costs-including requiring quarterly reviews of all services to determine if they are still needed and developing specific standards for each of the services. The Army expects to cut contract costs by $40 million in fiscal 2001.
Brown and Root meanwhile, told GAO it has saved the Army about $76 million over the last five years.
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