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The!Growth!of!the!“Camo!Economy”!and!the!Commercialization!of!the!Post-9/11!Wars!!
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Heidi!Pe ltier
1
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Boston!University!
!
June!30,!2020!
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11
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12
"P8%6,'33$8%2 4"]=16')"M::$&'"hP]Mi;"h.//Xi;"Contractors’'Support'of'U.S.'Operations'in'Iraq-"!;"
7))(eYY999;&+8;68?Y3$)'3Y1':2=4)Y:$4'3Y!!/)7I&8%6,'33I.//GI.//XY,'(8,)3Y/XI!.I$,2>&8%),2& )8,3;(1:;"
13
"Contractors’'Support'of'U.S.'Operations'in'Iraq-"!.;"
14
"Department'of'Defense'Contractor'and'Troop'Levels'i n'Afgh anistan'and'Iraq:'2007-2018.'DoD'presence'
includes'both'contractors'and'troops,'and'therefore,'as'contractors'account'for'more'than'50'percent,'this'means'
that'contractors'outnumber'troops."
15
"P2%&$2%-"V;d;"h./!Ci;"U.S.'Military'Forces'in 'FY'2020:'SOF,'Civilians,'Contractors,'and'Nukes.'P'%)',":8,"
#),2)'6$&"2%1"B%)',%2)$8%24"#)=1$'3; "7))(3eYY&3$3I(,81;3F;2*2A8%293;&8*Y3F:3I
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Ideological'Drivers:'Neoliberalism'and'the'Promise'of'Cost'Savings'Through'Competition'
'
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2%1"378=41"+'"1','6=42)'1"2%1"(,$?2)$A'1"23"*=&7"23"( 833$+4';"P8%3',?2)$?'")7$%@")2%@3-"
3=&7"23")7'"`',$)26'"d8=%12)$8%-"(=37'1")7'"$1'2")72)"(,$?2)'"(,8?$1',3"98=41"%'&'332,$45"
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)72%")7'"68 ?',%*'%)"&8=41"(,81=&'"$)3'4:;"D,$?2)$A2)$8%"8:")7'"(=+4$&"3'&)8,"923")7',':8,'"
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Political'Drivers:'Camouflaging'the'Level'of'Deployment'and'the'Number'of'Deaths'
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16
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W1*$%$3),2)$8%"378=41 "&72%6'")7'"(,8&'1=,'":8,"29 2,1$%6"&8%),2&)3"38")72)")7'"+$23"262$%3)"(,$?2)'":$,*3"$3"
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8=);"]5"98,@$%6")86')7',")8"$*(,8?'")7'"(,8&'33-"3$6% $:$&2%)",'1=&)$8%3"$%"3('%1$%6"&8=41"+'"2&7$'?'1"
9$)78=)",'1=&$%6"3',?$&'3")8")7'"W*',$&2%"('8(4';R"#''"V88,'-"#;"h!CXJi;"Backgrounder:'How'to'Privatize'
Federal'Services'by'“ Contracti ng'Out.”'<7'"`',$)26'"d8=%12)$8%;"
7))(eYY3F;2*2A8%293;&8*Y)7:n*'1$2Y!CXJY(1:Y+6KCK;(1:;"
17
"#$%6',- "KC;"
X"
"
The'use'of'contractor'support'appears'to'obviate'what'has'been'called'the'Abrams’'
Doctrine.'General'Creighton'Abrams'restructured'military'forces'to'closely'integrate'
the'reserve'and'guard'components'with'regular'Army'units.'For'example,'a'combat'
divisi on'could'not'deploy'and'operate'wi thout'a'reserve'transportation'unit'to'move'
their'supplies'and'a'reserve'water'unit'to'produce'and'transport'water.'There'is'
speculation'that'Abrams'intended'this'linkage'to'force'leadership'to'realize 'that'any'
use'of'combat'forces'would'require'broad'support'as'reserve'and'guard'units'were'
mobilized.'Replacing'these'reserve'un its'with'contractors'may'create'a'moral'haz ard'
in'that'a'President'can'now'commit'troops'to'war'without'calling'up'significant'
reserve'and'guard'units.
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,'&86%$A '1"8,"*8=,%'1"(=+4$&45;"Q?'%")78=67-"3$%&'".//!-"0;#;"&8%),2&)8,"&23=24)$'3"72?'"
+''%"7$67',")72%":8,"),88(3;"<7'"P83 )3"8 :"Z2,"D,8 ['&)"723"'3) $*2)'1")72)"2*8%6"0;#;"
&23=24)$'3-"2+8=)"X -/ //"&8%),2&)8,3"72?'"1$'1"$%")7'"(83)ICY!!"92,3-"&8*(2,'1")8"2+8=)"
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18
"#*$)7-"P;V;"h./!.i;"War'for'Profit:'Army'Contracting'vs.'Supporting'the'Troops;"W468,2-"!CC;"
19
"Department'of'Defense'Contractor'and'Troop'Levels'i n'Afgh anistan'and'Iraq:'2007-2018."
20
"Ibid.
21
"W3"8:"l8?'*+',"./!C"'3)$*2)'3-"G-/!K"0;#;"V$4$)2,5-".."0;#;"aMa"P$?$4$2%-"2%1"G-CU/"0;#;"P8%),2&)8,3"72?'"
1$'1"$%")7'"(83)ICY!!"92,3-"$%&4=1$%6"$%"W:672%$3)2%-"B,2>-"#5,$2-"b'*'%-"D2@$3)2%-"2%1"8)7',",'42)'1"2,'23;"
#''e"P,29:8,1-"l;P;"k"c=)A-"P;"h./!Ci;"Human'Cost'of'Post-9/11'Wars:'Direct'War'Deaths'in'Major'War'Zones,'
Afghanistan'and'Pakistan'(October'2001–October'2019);'Iraq'(March'2003–October'2019);'Syria'(September'
C"
,'&8,1'1-"&8%),2&)8,"1'2)73"%'$)7',",'&'$?'")7'"32*'"),2%3(2,'%&5"%8,"2%"'>=$?24'%)"
(=+4$&"2&@%894'16'*'%);"P8%), 2&)8,"1'2)73"2,'"4'3 3"?$3$+4'")8")7'"W*',$&2%"(=+4$&-"97$&7"
$3"(2,)"8:")7'"(84$)$&24"=3':=4% '33"8 :"*$4$)2,5"&8%),2&)$%6;"
"
d=,)7',*8,'-"*2%5"8:")7'"&8%),2&)8,3"98,@$%6"2%1",$3@$%6")7'$,"4$?'3"$%")7'3'"92,"
A8%'3"2,'"%8) "0;#;"&$)$A'%3-"+=)",2)7',"783)I&8=%),5"2%1"O)7$,1I&8=%),5"%2)$8%243;R"B%"./!G-"
l827"P8+=, %"18&=*'%)'1"789"*2%5"%8%I0;#;"(',38%%'4 "98, @":8,"0;#;"&8%),2&)8,3"2%1")7'"
2+53*24"98, @$%6"&8%1$)$8%3"2%1"7=*2%",$67)3"2+=3'3")7'5":2&'-"$%"211$)$8%")8")7'"4'?'4"8:"
$%[=,5"2%1"1'2)7")8"97$&7")7'5"3=&&=*+;"<7$3-")88-"$3"(2,)"8:")7'"&2*8=:426'"(,8?$1'1"+5"
*$4$ )2,5"&8%),2&)$%6;
..
"""
"
Economic'Factors:'Excess'Supply'Creates'Its'Own'Demand,'Sometimes'with'a'Bit'of'Help'
'
#25S3"c29"$3"8:)'%"$%?8@'1"h&8,,'&)45"8,"%8)i"23")7'"$1'2")72)"O3=((45"&,'2)'3"$)3"89%"
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"
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"
2014–October'2019);'Yemen'(October'2002–October'2019);'and'Other;"<7'"P83)3"8:"Z2,"D,8['&)-"],89%"
0%$?',3$)5"Z2)38%"B%3)$)=)'"2%1"]83)8%"0%$?',3$)5"D2,1''"P'%)',;"
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22
"P8+=,%-"l;"h./!Gi;"The'Guards,'Cooks,'and'Cleaners'of'the'Afghan'War:'Migrant' Contractors'and'the'Cost'of'
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"
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(,8?$1';"""
"
<7'"Oc86$3)$&3"P$?$4"W=6*'%)2)$8%"D,86,2*-R"@%89%"23"cM\PWD-"923":$,3)"
'3)2+4$37'1"+5")7'"0;#;"*$4$)2,5"$%"!CXU"$% "8,1',")8"(42%")7'"2=6*'%)2)$8%"2%1"3=((8,)"8:"
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"
…'tasked'Brown'and'Root'with'planning'and'budgeting'the'theoretical'logistical'
support'for'more'than'a'dozen'different'fictional'scenarios'that'could'require'th e'
deployment'of'twenty'thousand'troops'in'five'base'camps'for'six'months.'The'resulting'
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23
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24
"Contractors’'Support'of'U.S.'Operations'in'Iraq-"KIU;"
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25
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"""
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"
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(=+4$&"3'&)8,-"B"9$44"=3'")7'")',*"O&8**',&$24"*8%8(845R"$%3)'21"8:"(,$?2)'"*8%8(845;""
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8=)38=,&$%6 ")8"7$ 67I&83)-"%8%I&8*(')$)$?'":$,*3"2%1"=4)$*2)'45"923)$%6")'%3"8,"7=%1,'13"8:"
+$44$8%3"8:"18442,3"$%")2g(25',"*8%'5"'2&7"5'2,;""V$4$)2,5"&8%),2&)$%6"$3"$%'::$&$'%)"2%1"%8 %I
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29
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&8*(')$)$8%")8"97$&7")7'5"2,'"3=+['&);"`89")7'"&8%),2&)8,"$3"(2$1"9$44"1')',*$%'"$%"(2,)"
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"
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&8%),2&)8,3"+'2,")7'",$3@"8:"&83)"8?',,=%3"2%1",'2(")7'"+'%':$)3"8:"&8 3)"32?$%63;"B%"&83)I)5('"
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30
By dollar value of contracts, not by number of contracts. Dollar values shown in Figure 5.
31
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“Sole'Source”'and'“Captains'of'In du stry”'Contracts'
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*2$%)'%2%&'":8,"2"353)'*"*=3)"+'"3=((4$'1"+5")7'"8,$6$%24"'>=$(*'%)"*2%=:2&)=,',"
hMQVi;"W"&8* (')$)$?'"&8%),2&)":8,"68813")7'%"+'&8*'3"2"*8%8(845"8%"42)',"3',?$&'3;"W"a8a"
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'
The'competitive'percentages'are'lower'in'organizations'that'buy'major'systems'
(including'weapons,'automated'informa tion'systems'and'Foreign'Mili tary'Sales),'
specialized'equipment,'spares'and'upgrades'that'may'need'to'be'purchased'from'the'
original'equipment'manufac turer'(OEM)'or'supplier.'These'programs'may'require'sole'
source'extensions'of'contracts'that'were'originally'competed'because'the'programs'
have'moved'past'the'stage'in'their'lifecycle'where'competition'is'economically'viable.
32
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'%1"12)';"V$4$)2,5"(',38%%'4"3',?$&'1")7'$,"9'2(8%3-"?'7$&4'3-"2%1"8)7 ',"'>=$(*'%)N)7$3"
923"&8%3$1','1"2"&,$)$&24":=%&) $8%-"2%"O$%7','%)45"68?',%*'%)24"2&)$?$)5-R")72)"378=41"%8)"+'"
8=)38=,&'1;"l89-"789'?',-")7$3"$3"2",'6=42,"8&&=,,'%&';"<7$3"8=)38=,&$%6"8:"3',?$&'3"4$@'"
9'2(8%3"*2$%)'%2%&'"%8)"8%45"723"%'62)$?'"3'&=,$)5"$*(4$&2)$8%3"h23")7'"*$4$)2,5"+'&8*'3"
32
"0;#;"a'(2,)*'%)"8:"a':'%3'"ha8ai;"h./!Ui;"Competition'Report'for'Fiscal'Year'2014;"
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This'phenomenon'of'commanders’'unwillingness'to'change'support'contractors'was'a'
powerful'constraint'on'inducing'competition'into'the'LOGCAP'program.'Change'can'be'
disruptive,'and'commanders'naturally'avoi d'it.'The'contractor'also'becomes'adept'at'
integrating'his'staff'into'the'commander’s'staff.'The 'contractor'becomes'the'staff'
expert'on'service'support.'As'office rs'rotate'through'the'operation'the'contractor'
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personnel'often'become'the'most'experienc ed'members'of'the'staff.'In'2010,'the'Army'
made'a'significant'decision'to'retain'KBR'as'the'life'support'LOGCAP'contrac tor'in'
Iraq,'even'though'savings'from'competition'were'available.
34
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Profitability'Raises'Costs'and'Leads'to'Fraud,'Abuse,'and'Other'Distortions'Caused'by'Political'
Power'of'Contractors'
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+=$41"$% "425',3"8:"(,8:$)3;"d$%2445-"68?',%*'%)"8?',3$67)"$3"$%3=::$&$'%)"8,"42&@$%6"+'&2=3 '"8 :"
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"
The'scale'of'the'corruption'was'the'unintended'result'of'swamping'the'war'zone'with'
far'more'aid'and'defense'contracts'than'impoverishe d'Afghanistan'could'absorb.'
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There'was'so'much'excess,'financed'by'American'taxpayers,'that'opportunities'for'
bribery'and'fraud'became'almost'limitless,'according'to'the'interviews.
36
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=%1',3)2)'*'%)i")72)"2"3$6%$:$&2%)"(8 ,)$8%"8:"(83)ICY!!"92,)$*'"&8%),2&)"18442,3"72?'"
'%1'1"=("$%")7'"72%13"8:")7'"$%3=,6'%)3")72)")7'"0;#;"*$4$)2,5"$3":$67)$%6;"d8,"$%3)2%&'e"
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Gert'Berthold,'a'f orensi c'accountant'who'served'on'a'military'task'force'in'
Afghanistan'during'the'height'of'the'war,'from'2010'to'2012,'said'he'helped'analyze'
3,000'Defense'Department'contracts'worth'$106'billion'to'see'who'was'benefiting.''
The'conclusion:'About'40'percent'of'the'mone y'ended'up'in'the 'pockets'of'insurgents,'
criminal'syndicates'or'corrupt'Afghan'officials.”
39
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