U.S. DoD Spending Trends FY 2012-2013

FY 2012

In FY2012, (fiscal year starting October 1, 2011) the DoD was projected to spend a total of $645.7 billion dollars (discretionary). Of this amount, $530.6 billion is Base Request and $115.1 billion is for Overseas Contingency Operations (used to be called Global War on Terror).

In the former FY2012 budget proposed a year ago,  the DoD would have received $676.0 billion - thus the budget has been cut by $30.3 billion or 4.5%. Of the $676 billion, $558.2 billion was Base and $117.8 billion for Overseas Contingency Operations.

Union officials say South Korean security guards at U.S. Forces Korea installations are strongly considering a strike if their new employer doesn't give them a raise.

C&S Corp. was awarded a contract earlier this month to provide security at a number of USFK bases, replacing another company, G4S, that failed to hire enough guards to staff entry gates during its first four months on the job.

Guards held protests outside USFK bases for months, claiming G4S had unfairly cut their wages and lengthened their work hours. USFK troops were forced to man gates until G4S reached adequate staffing on March 23.

A former U.S. Army Corps of Engineers (USACE) employee deployed to Tikrit, Iraq, during Operation Iraqi Freedom today admitted taking at least $3.7 million in bribes and kickbacks in connection with more than $50 million in USACE contracts awarded to foreign companies in Gulf Region North, Iraq, New Jersey U.S. Attorney Paul J. Fishman announced.

Egyptian-born U.S. citizen John Alfy Salama Markus, 40, of Nazareth, Pa., pleaded guilty before U.S. District Judge Jose L. Linares in Newark federal court to three counts of a 54-count Indictment returned in July 2011 charging him with wire fraud, conspiracy to commit bribery and to defraud the U.S. government, money laundering, and tax offenses. Two other USACE employees and two foreign contractors also were charged in the July 2011 Indictment.

American special operations forces have suspended the training of new recruits to an Afghan village militia until the entire 16,000-member Afghan police recruits to be re-screened for possible links to the insurgency US officials say.

The move is the latest repercussion from a series of "insider" shootings carried out by members of the Afghan police and army against Western troops. Forty-five NATO service members have been killed in such attacks this year, and the U.S. toll in August alone was 12 dead.

EOD Technology, Inc., of Lenoir, Tennessee, protests the corrective action taken by the Department of the Army under request for proposals (RFP) No. W91B4L-12-R-0189 for security services in Afghanistan. EOD argues that the Army improperly determined that EOD was nonresponsible, and permitted the awardee, Olive Group, of Dubai, United Arab Emirates, to begin performing the contract.

We dismiss the protest.

L-3 Communications announced today that it has successfully completed the previously announced spin-off of its subsidiary, Engility. L-3 shareholders of record as of July 16, 2012 received one share of Engility common stock for every six shares of L-3 common stock held on the record date.

The spin-off has been structured to qualify as a tax-free distribution to L-3 shareholders for U.S. federal tax purposes, except for cash received in lieu of fractional shares. Following the spin-off, L-3 will report Engility financial results as discontinued operations beginning with L-3's 2012 third quarter, along with all prior periods.

Since the January 2010 earthquake in Haiti the demand for private security in Haiti has surged, says a new report from the Centre for International Governance Innovation.The study finds that while many countries rely heavily on private security companies to protect people and property, Haiti stands out for its heavy use of private contractors while providing little effective government oversight.

CONTRACTOR SUPPORT OF U.S. OPERATIONS IN THE USCENTCOM AREA OF RESPONSIBILITY TO INCLUDE IRAQ AND AFGHANISTAN

BACKGROUND:  This update reports DoD contractor personnel numbers in theater and outlines DoD efforts to improve management of contractors accompanying U.S. forces.  It covers DoD contractor personnel deployed in Afghanistan (Operation Enduring Freedom (OEF), Iraq, and the U.S. Central Command (USCENTCOM) area of responsibility (AOR).  

KEY POINTS: In 2nd quarter FY 2012, USCENTCOM reported approximately 153,000 contractor personnel working for the DoD in the USCENTCOM AOR.  This was approximately a .6% increase from the previous quarter.  The number of contractors outside of Afghanistan and Iraq make up about 16% of the total contractor population in the USCENTCOM AOR.  A breakdown of DoD contractor personnel is provided below:

DoD Contractor Personnel in the USCENTCOM AOR

*Includes DoD contractors supporting U.S. Mission Iraq and/or Office of Security Cooperation-Iraq

Afghanistan Summary 

• The distribution of contractors in Afghanistan by contracting activity are:

Theater Support - Afghanistan: 20,226  (17%)

LOGCAP: 32,653  (28%)

U.S. Army Corps of Engineers: 15,222  (13%)

Other:* 49,126  (42%)

Total: 117,227

 CONTRACTOR SUPPORT OF U.S. OPERATIONS IN THE USCENTCOM AREA OF RESPONSIBILITY, IRAQ, AND AFGHANISTAN

BACKGROUND:  This update reports DoD contractor personnel numbers in theater and outlines DoD efforts to improve management of contractors accompanying U.S. forces.  It covers DoD contractor personnel deployed in Afghanistan (Operation Enduring Freedom (OEF)), Iraq, and the U.S. Central Command (USCENTCOM) area of responsibility (AOR). 

KEY POINTS: In 1st quarter FY 2012, USCENTCOM reported approximately 152,000 contractor personnel working for the DoD in the USCENTCOM AOR.  The number of contractors outside of Afghanistan and Iraq make up about 9.6% of the total contractor population in the USCENTCOM AOR.  A breakdown of DoD contractor personnel is provided below:

DoD Contractor Personnel in the USCENTCOM AOR

* These numbers are as of December 9, 2011 and do not reflect the continued contractor drawdown in anticipation of the end of military operations in Iraq.

A U.S. government contractor in Iraq charged the Pentagon a whopping amount of money for inexpensive items, including $900 for a $7 control switch, according to a new report from a U.S. watchdog.

U.S. Special Inspector General for Iraq Reconstruction Stuart W. Bowen Jr. said review found that Anham, LLC, which is based in suburban Washington, allowed its subcontractors in Iraq to also charge $3,000 for a $100 circuit breaker, and $80 for a piece of plumbing equipment worth $1.41.

As a result, Bowen's inspectors are seeking to review all Anham contracts with the U.S. government in Iraq and Afghanistan, which total about $3.9 billion.