Overseas Contracts

By John Liang / March 7, 2013 at 4:38 PM

A new Congressional Research Service report finds that "understanding the costs associated with contractor support of overseas military operations could provide Congress more information upon which to weigh the relative costs and benefits of different military operations -- including contingency operations and maintaining bases around the world."

The March 1, 2013, report -- originally obtained by Secrecy News -- notes that the Defense Department "spends more on federal contracts than all other federal agencies combined." As for total contract obligations, the report states:

From FY1999 to FY2012, DOD contract obligations increased from $170 billion to $360 billion (in FY2012 dollars). However, over the last five fiscal years, adjusted for inflation, contract obligations dropped from a high of $420 billion in FY2008 to $360 billion in FY2012. DOD's contract obligations in FY2012 were equal to 10% of the entire federal budget.

And as for overseas contract obligations:

DOD obligated $44 billion (12% of total contract obligations) for contracts performed overseas in FY2012. Although much of these funds were to support operations in Afghanistan and Iraq, $18 billion (40%) was spent to support operations in other parts of the world.

DOD contract obligations for work performed overseas occurred primarily in the area under the jurisdiction of U.S. Central Command (59% of total), which includes the Iraq and Afghanistan areas of operation. DOD contractors working abroad performed their remaining work in the geographic regions that fall under U.S. European Command (25%), U.S. Pacific Command (11%), U.S. Northern Command (2%), U.S. Southern Command (1%), and U.S. African Command (1%).

Read the full report.

73466