For contractors in war zones, business will keep growing.

• Author: Erwin, Sandra I.
• Position: DEFENSE WATCH

The constant sniping in Washington about military contractors--particularly those doing" business in Iraq--ignores the inescapable conclusion that the privatization of government functions not only is here to stay, but is going to get bigger.

By the government's own estimates, of the Pentagon's $300 billion annual procurement outlays, half is for private-sector service contracts.

The reasons why the Defense Department is highly dependent on the private sector have been well documented. A dramatic rise in the privatization of military functions started nearly two decades ago as the Defense Department began to downsize. The Pentagon reversed course after the 9/11 attacks and has since added more civilians and military personnel to its payroll. But that did not in any way slow down the hiring of contractors, which surged noticeably after the invasion of Iraq.

During the past year, a string of government and independent investigations have raised serious questions about the Defense Department's ability to supervise contractors, and have sparked calls for the Pentagon to exercise more oversight.

Of most concern is the shortage of contracting officers in the field. A commission led by former Pentagon acquisition chief Jacques Gansler confirmed what had been suspected for a long time: lax government administration of war zone contracts created a climate of corruption, resulting in fraud, waste and abuse.

The Defense Department should fix this sooner than later, because the demand for contractors is not going away, at least as long as U.S. troops are expected to fight wars. In Iraq, there is one contractor for every 1.5 soldiers. While the media spotlight has focused on private security, logistics contractors--currently about 50,000--comprise the largest population of private sector workers deployed in Iraq. Another 20,000 provide support and maintenance services for weapon systems.

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The Industrial College of the Armed Forces recently completed a comprehensive study of "privatized military operations" and concludes that, even after the United States leaves Iraq, contractors will remain a constant presence any place where U.S. forces might go.

The study was the product of extensive research by a group of military and civilian students at ICAF.

Contracted services in support of military operations is "likely to be an enduring reality of modern U.S. warfare," said the ICAF report. For that reason, "the Defense Department must...