GAO: Defense needs backup plans for contractors in crisis

The military lacks contingency plans for replacing contractors who provide essential services to troops when they can't perform their jobs, according to a new report from the General Accounting Office.

Defense guidance, first published in November 1990, requires each branch of the military to identify contractors who provide critical services to deployed units and to develop strategies for ensuring that these services continue during emergencies. But according to a new GAO report, the military has done little to comply with this directive.

During a series of visits to deployed troops in the Balkans and Persian Gulf, GAO researchers found few lists of essential services provided by contractors, and "little in the way of backup plans." The government watchdog agency found only one contingency plan, the report (GAO-03-695) said.

In interviews conducted from August 2002 to April, military officials told GAO that they trusted contractors to remain alongside troops, even in the event of war. The officials were confident they could find replacements, should contract workers became incapacitated in an attack or accident. Replacements could come from either the contracting company itself, or from nearby units, the officials said.

But military officials should not make such assumptions, GAO warned. Multiple units might end up calling the same unit asking to borrow contractors for backup. In addition, replacements for contractors with certain specializations, such as language skills or weapons repair expertise, might not be readily available. "Without firm plans, there is no assurance that the personnel needed to provide the essential services would be available when needed," the report cautioned.

Contractors have been an integral part of every military operation since the 1991 Persian Gulf and have provided services ranging from communications and weapons system maintenance, to laundry. The Pentagon has relied on them increasingly to fill gaps in skills and allow service members to concentrate on fighting, GAO said. They also help the military get around caps on the number of troops allowed in certain regions, including the Balkans. GAO has estimated that the Defense Department will spend more than $4.5 billion on contracted services from fiscal 2000 through fiscal 2005.

This increasingly heavy reliance on contractors can be risky without adequate backup and oversight, the report noted. For instance, Army units in Afghanistan counted on contractors to maintain equipment that detects biological threats, GAO pointed out. "The loss of this contractor support would adversely affect the Army's ability to detect biological threats at deployed locations."

The military generally does a good job overseeing the contractors that assist deployed troops, GAO added. But Defense needs to come up with agencywide guidance for oversight to ensure consistency. Each branch of the military also needs such guidance, the report said. So far, the Army is the only one that has it.

Military officials should make comprehensive lists of all contractors services used at any given location, GAO said. Without these lists, it is hard for commanders to figure out where to go for help if they have questions regarding contractor support. A lack of information on total contractor support also makes it difficult to estimate total costs associated with these services.

Also, the Pentagon should standardize contract language, GAO recommended. Otherwise, mistakes can disrupt operations. For example, the Army left deployment clauses out of some contracts for work in Iraq. This omission resulted in "increased contract costs as well as delays in getting contractors into the field."

The Defense Department agreed with most of GAO's recommendations, but noted that it is ultimately up to military units to identify essential services to be provided by contractors and to create emergency plans. In a June 16 response to the report, Deidre Lee, director of procurement and acquisition policy at Defense, said that the definition of "essential" is "ephemeral" and can change quickly, making it burdensome for officials to keep an up-to-date list of these services.