Audit suspended, but State Dept. found justification to increase contractors pay to $4 bilion a year

[ProSense]

Use of Contractors by State Dept. Has Soared

By JOHN M. BRODER and DAVID ROHDE
Published: October 24, 2007

WASHINGTON, Oct. 19 — Over the past four years, the amount of money the State Department pays to private security and law enforcement contractors has soared to nearly $4 billion a year from $1 billion, administration officials said Tuesday, but they said that the department had added few new officials to oversee the contracts.

It was the first time that the administration had outlined the ballooning scope of the contracts, and it provided a new indication of how the State Department’s efforts to monitor private companies had not kept pace. Auditors and outside exerts say the results have been vast cost overruns, poor contract performance and, in some cases, violence that has so far gone unpunished.

A vast majority of the money goes to companies like DynCorp International and Blackwater USA to protect diplomats overseas, train foreign police forces and assist in drug eradication programs. There are only 17 contract compliance officers at the State Department’s management bureau overseeing spending of the billions of dollars on these programs, officials said.

Two new reports have delivered harsh judgments about the State Department’s handling of the contracts, including the protective services contract that employs Blackwater guards whose involvement in a Sept. 16 shooting in Baghdad has raised questions about their role in guarding American diplomats in Iraq.

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US suspends Iraq audit of DynCorp

By PAULINE JELINEK, Associated Press Writer
Tue Oct 23, 11:52 AM ET

WASHINGTON - The State Department so badly managed a $1.2 billion contract for Iraqi police training that it can't tell what it got for the money spent, a new report says.

Because of disarray in invoices and records on the project — and because the government is trying to recoup money paid inappropriately to contractor DynCorp International, LLC — auditors have temporarily suspended their effort to review the contract's implementation, said Special Inspector General for Iraq Reconstruction Stuart W. Bowen Jr.

Bowen had been trying to review a February 2004 contract to DynCorp awarded by the State Department's Bureau for International Narcotics and Law Enforcement Affairs (INL). The company was to provide housing, food, security, facilities, training support, law enforcement staff with various specialties as well as weapons and armor for personnel assigned to the program.

"I guess it's a familiar theme," Bowen said Monday, in that problems have previously been documented with both DynCorp and the agency overseeing the contract.

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