The contract, called the Logistics Civil Augmentation Program (LOGCAP) V, is currently capped at $82 billion and will consist of four to six contracts lasting up to ten years­—a five-year base term followed by five one-year options. Contractors will provide services ranging from supplying food, water, and shelter to performing facilities maintenance and construction.

The previous version of the contract, LOGCAP IV, was awarded to DynCorp International LLC, Fluor Intercontinental, Inc., and Kellogg Brown & Root Services, Inc. (KBR). Two of the companies allegedly committed misconduct while working on it. Employees accused Fluor of retaliating against them after they claimed the company manipulated reports to hide lost government property. Firefighters on military bases accused KBR of denying them pay and benefits, and the company was disqualified from fulfilling part of the contract for refusing to take action after an employee viewed sensitive and proprietary information. KBR is the contractor that originally drew controversy to the LOGCAP contracts in 2001. KBR’s former CEO, Dick Cheney, was Vice President of the United States when LOGCAP III was awarded to the company. The government and employees sued the company numerous times for waste, fraud, and abuse. Most famously, KBR exposed thousands of troops stationed in Iraq to unsafe wastewater that the troops used when showering, washing clothes, brushing their teeth, and occasionally making coffee. Troops may have suffered health problems due to exposure. KBR was awarded LOGCAP IV despite its track record on LOGCAP III.

The other incumbent, DynCorp, has not been charged with misconduct while working on LOGCAP IV, but it too has a history of malpractice on other government contracts. Ecuadorians accused the company of causing extreme physical and mental harm as well as property damage after the contractor sprayed pesticides over Colombia and Ecuador to eradicate cocaine and heroin crops. DynCorp employees also pleaded guilty to overcharging the State Department for rent in Iraq.

LOGCAP IV expired in April 2018, but the Army has repeatedly delayed awarding LOGCAP V. According to LOGCAP V project manager Jerome Jastrab, the decisions will be announced around December 2018. In the meantime, services will continue to be provided by the three incumbents whose contracts were extended for up to two one-year terms. LOGCAP IV ended up costing approximately $22 billion prior to the extension, although the government capped it at $150 billion. The Army has not publicly disclosed the dollar amount of the contract extensions.

In October 2017, the Army hosted Industry Day, an event for companies that were interested in bidding on contracts and learning more about contract expectations. Representatives from LOGCAP IV incumbents Fluor and KBR attended; DynCorp was not present at the event. While the Army only allowed three representatives from most companies to attend the event, Fluor was allowed seven.

There are plenty of other companies also looking to come away with a piece of LOGCAP V. One such company is Pacific Architects and Engineers (PAE), once a subsidiary of Lockheed Martin. PAE has created two separate joint ventures with defense suppliers—one with Parsons Corporation and the other with Vectrus Systems—in hopes of increasing its chances of winning. The joint ventures are headed by Scott Welker, who was a senior official at the Army contracting headquarters three months prior to leading the ventures. All three companies were at Industry Day, with Vectrus being allowed six representatives despite the three-person limit.

The new companies have also had their share of alleged and proven misconduct while working on other government contracts. Most recently, PAE paid the government $5 million for failing to conduct, and falsely billing the government for, personnel background checks. Prior to this, PAE paid $1.15 million for bid-rigging on a services contract in Afghanistan. Vectrus, who is teaming up with PAE, retaliated against employees who were cooperating with an investigation into illegal activities at Bagram Air Base in Afghanistan. The jury awarded the employees $1.7 million in damages. Parsons, the other defense supplier partnering with PAE, failed to complete two thirds of the projects assigned in a construction contract in Iraq, prompting the Army to ask the company to show cause for why it should not be debarred.

The Army is taking steps to improve performance and to safeguard against contractor fraud and misconduct in the next LOGCAP contract. First, the contract will be awarded on a competitive basis in hopes that competition will improve contractor accountability. This was the approach implemented in LOGCAP IV and resulted in far fewer instances of misconduct than the previous, sole-source contract. Second, the Army will require contractors to create crisis action plans to prepare for unforeseen or sudden warfighter needs. These plans will be put to the test during the three planning exercises per year now required at bases in each region. In principle, implementing these measures will help contractors respond more quickly to troop needs.

In addition, the Army is learning from mistakes from past contracts. They agreed to implement in LOGCAP V all corrective actions suggested by the Department of Defense Inspector General in a LOGCAP IV audit to increase accountability and effective contractor oversight.

While nothing is certain about which companies will win the LOGCAP V contract, it’s good to see the government designing the contract with safeguards, such as requiring contractors to submit crisis action plans, to ensure they do what they’re supposed to and are held accountable when they don’t. Hopefully the extra time that was needed to amend LOGCAP V and to deliberate over who will win the contracts will result in improved decisions when it comes to the contractors the Army chooses and, ultimately, in improved logistical support for our troops.

DoD Contractor Personnel in the USCENTCOM AOR

DoD Contractor Population Trends (FY08 – FY18)

OIR (Iraq) Summary

The distribution of contractors in Iraq by mission category are:

• Base Support 827 (16.8%)
• Construction 499 (10.1%)
• IT/Communications Support 267 (5.4%)
• Logistics/Maintenance 1,480 (30.0 %)
• Management/Administrative 247 (5.0%)
• Medical/Dental/Social Services 14 (0.3%)
• Other 64 (1.3%)
• Security 406 (8.2%)
• Training 37 (0.8%)
• Translator/Interpreter 805 (16.3%)
• Transportation 281 (5.7%)

        Total: 4,927

o Contractor Posture: Of the approximately 9,645 contractors supporting U.S. Government operations in Iraq, approximately 4,927 contractors are directly supporting DoD-funded contracts. This is a 6.5% increase over last quarter, due to an increase in the demand for Construction, Translator/Interpreter, and Logistics/Maintenance contractors.

OFS (Afghanistan) Summary*

The distribution of contractors in Afghanistan by mission category are:

• Base Support 3,511 (13.5%)
• Construction 2,115 (8.1%)
• IT/Communications Support 943 (3.6%)
• Logistics/Maintenance 8,092 (31.1%)
• Management/Administrative 1,810 (7.0%)
• Medical/Dental/Social Services 137 (0.5%)
• Other 1,025 (3.9%)
• Security 3,984** (15.3%)
• Training 918 (3.5%)
• Translator/Interpreter 1,852 (7.1%)
• Transportation 1,656 (6.4%)

          Total: 26,043

*Includes Defense Logistics Agency, Army Materiel Command, Air Force External and Systems Support contracts, Special Operations Command and INSCOM. **1,867 Armed Private Security Contractors

o Contractor Posture: Approximately 26,043 DoD contractors supported operations in Afghanistan during 1st quarter FY18, an increase of 9.2% from 4th quarter FY17. Local Nationals comprise 24.5% of total contractor force; 19,666 US/TCN remain to redeploy. The expected Force Manning Level increase will drive an increase in contracted support requirements thus increasing contractor footprint.

o A total of 1,867 Private Security Contractors (PSCs) were supporting USCENTCOM operations in Afghanistan as of 1st quarter FY18. See table below for a detailed summary:

DoD Private Security Contractor Personnel in Afghanistan

*These numbers include most subcontractors and service contractors hired by prime contractors under DoD contracts.

 USCENTCOM Operational Contract Support Integration Cell (OCSIC) Forward (FWD). The USCENTCOM OCSIC FWD made significant progress this quarter in improving Operational Contract Support (OCS) processes. The team successfully published an order that defined and implemented a theater-wide process to vetting vendors in order to identify possible force protection concerns and avoid contracting with the enemy. Following publication of the order, the team increased its training and outreach efforts to ensure smooth implementation. Improved management of contractors in theater continues to be a priority for the OCSIC. Since the last report, Defense Procurement Acquisition Policy (DPAP) published a class deviation directing use of clause 252.225-7995, Contractor Personnel Performing in the USCENTCOM AOR completing a 10 month effort by the OCSIC FWD and Contract Support Division to improve contractor accountability requirements. The deviation requires all contractors to be registered in the Synchronized Pre-Deployment Operational Tracker – Enterprise Suite (SPOTES) and reinforced requirements for companies to comply with the timelines documented in the SPOT-ES business rules. The intent is to improve the timeliness and accuracy of contractor updates. Contractor compliance with host nation laws remained vital to maintaining the cooperation and support from nations hosting U.S. forces. During this quarter, the OCSIC FWD worked with LOGCAP administrators to improve VISA compliance by 76% in Afghanistan and 115% in Iraq. In December, USCENTCOM sponsored a second vendor workshop Oman, in the port city of Salalah. Aided by the significant support provided by the U.S. Embassy and the Defense Logistics Agency (DLA), as well as contracting representatives from the service components, the workshop educated more than fifty Omani vendors on procedures for doing business with the DoD, and increased their ability to competently compete for DoD business.

 OPERATION FREEDOM'S SENTINEL (OFS). A Joint Contingency Acquisition Support Office (JCASO) planner supported USCENTCOM staff at the December OFS Planning Conference at Al Udeid Air Base. Coordination between USCENTCOM OCSIC FWD and the U.S. Forces - Afghanistan (USFOR-A) OCSIC continues as requirements for the Security Force Assistance Brigade and uplift efforts are being finalized.

IMPROVEMENTS TO MANAGEMENT AND OVERSIGHT OF DOD CONTRACTORS

 OCS Functional Capabilities Integration Board (FCIB). The 30th consecutive OCS FCIB Principals meeting was held on November 21, 2017. Highlights include: Joint Staff J4 OCS Division is leading an effort to integrate OCS into the Chairman’s enduring Joint Exercise Program. A detailed proposal will be provided for the Board’s consideration in May 2018. The OUSD (Personnel & Readiness), Defense Civilian Personnel Advisory Service will conduct a functional competency model assessment to identify OCS human capital requirements to improve identification, tracking and training of civilian and military personnel performing OCS activities. Results will be integrated into the DoD Human Capital Operating Plan and work will begin in mid-January 2018. JCASO announced two new initiatives (OCS Tutor Pilot Program and Mobile OCS Staff Training Team) to increase awareness and OCS capacity at Service Component Staffs. Progress reports and performance metrics will be provided to the Board throughout the year. The next FCIB Principals meeting will be held on February 27, 2018. For additional information contact the FCIB Executive Secretary, Ms. Anna Carter at [email protected]

 OCS Joint DOTmLPF-P Change Recommendation (DCR). On December 21, 2017, the Joint Staff J8 released the draft OCS Joint DCR for formal staffing in the Knowledge Management/Decision Support System. ODASD(Program Support) will release the document to the OCS FCIB community of interest and other stakeholders in early January. The purpose of this document is to implement actions required to institutionalize OCS capability across multiple functional areas at all levels and echelons. Once approved by the Joint Requirements Oversight Council (JROC), the Office of the Secretary of Defense, Defense Agencies, Joint Staff, Geographic Combatant Commands and Military Services will work to resolve lingering OCS capability shortfalls. Final JROC review and approval is anticipated by 3rd quarter FY18.

 OCS Common Operating Picture (COP). In November 2017, the Defense Information Systems Agency released the Awarded Procurements widget, the final element of the inaugural set of OCS COP capabilities, in the Global Combat Support System-Joint production environment. The OCS COP enables users to view and map data from three OCS-critical systems together, providing greater visibility of contracted capabilities and supporting integrated decision-making. The Awarded Procurements widget includes data from the Federal Procurement Data System - Next Generation system (via DPAP’s Procurement Business Intelligence System) on contracts worldwide. This capability joins the other previously deployed OCS widgets for Emerging Requirements (data from the Contingency Acquisition Support Module) and Contractor Personnel (data from the Synchronized Predeployment and Operational Tracker). The OCS COP is sponsored by the DASD(Program Support) and the Director for Logistics Joint Staff J-4.

 Defense Standards for Security Services.

o All DoD contracts for private security services require compliance with American National Standard Institute (ANSI) PSC.1-2012, “Quality Management Standard for Private Security Company Operations.” The standard incorporates all PSC relevant provisions of US law, Defense Directives and Instructions, and promotes consistency with international agreements. A re-issuance of this standard was released by ANSI in October 2017. This new release incorporates recent developments in use of force criteria and clarification of applicable national law.

o The International Organization for Standardization (ISO) version of this standard is ISO 18788-2015. This international standard enables acceptance of the PSC standard described above in countries where the use of an American National Standard is not feasible. PSCs achieving independent certification to the ISO standard may be given concurrent certification to the ANSI PSC standard. DFARS 52.225-7039 recognizes the ISO standard as an acceptable alternative to the ANSI standard.

o A total of 47 PSCs from 13 different countries have achieved independent third party certification to one or both of these standards. Another 22 PSCs from 15 countries are known to have begun the certification process.

 Joint Contingency Acquisition Support Office (JCASO). JCASO continues to provide Combatant Commands a joint enabling capability to integrate, coordinate, and synchronize OCS during peacetime, contingency operations, and post-conflict operations. Recent JCASO engagements include:

o USCENTCOM Support:

 USCENTCOM FWD OCSIC: JCASO Headquarters deployed one planner for a three and a half-month rotation (October 2017 to January 2018) to provide assistance and training to the USCENTCOM OCSIC FWD, other OCSICs in the USCENTCOM AOR, and to units preparing for deployment into the USCENTCOM AOR.

 USFOR-A OCSIC Organization Change: A JCASO OCS planner conducted a staff assistance visit to USFOR-A in support of USCENTCOM FWD OCSIC. Observations provided will continue to support process improvements in the USCENTCOM AOR.

 USARCENT FWD OCSIC: JCASO Headquarters deployed two military Mission Support Team (MST) members from October to December 2017 to provide a temporary OCSIC capability, ensure continuity of operations, and provide relief in place/transfer of authority (RIP/TOA) training to incoming staff.

o Global Support to Combatant Commanders: JCASO continues OCS planning efforts across the regions, domains, and functions to provide additional options for decision makers, including the most challenging scenarios identified in the current National Military Strategy. Simultaneously JCASO is responding to real-world operations (e.g., support to U.S. Northern Command for hurricane relief efforts in Puerto Rico).

o Joint Exercise Support: JCASO participated in USCENTCOM’s joint exercise INTERNAL UNION 2018 (IU18) execution in partnership with coalition forces. During 1st quarter FY18, JCASO provided support to 13 joint exercises in the following capacity: 1) Exercise Execution: U.S. European Command (USEUCOM) Sustainment Wargame, VIKING 18; and 2) Exercise Planning: JUDICIOUS RESPONSE-EPIC GUARDIAN, AUSTERE EDGE, USEUCOM Exercise, AUSTERE CHALLENGE, VIGILANT SHIELD, ARDENT SENTRY, INTEGRATED ADVANCE, PACIFIC SENTRY, KEEN EDGE, KEY RESOLVE, and ULCHI FREEDOM GUARDIAN.

 U.S. Combined Arms Support Command (CASCOM):

o Field Manual (FM) 3-0, Operations: In October, 2017, the Army published FM 3-0, Operations. This publication serves as the cornerstone of Army doctrine, and the latest edition incorporates significant OCS equities. The new field manual is available at: https://armypubs.army.mil/epubs/DR_pubs/DR_a/pdf/web/ARN6687_FM%2030%20C1%20Inc%20FINAL%20WEB.pdf.

o Army’s First Comprehensive Non-acquisition OCS Training Strategy: On December 20, 2017, the Commanding General CASCOM approved the Army’s first comprehensive non-acquisition OCS training strategy. The strategy identifies capabilities and gaps within the Army’s current training and education systems, and identifies and prioritizes solutions designed to improve individual and collective OCS skills. As the Army’s force modernization proponent for non-acquisition OCS, CASCOM develops and integrates DOTMLPF solutions designed to mitigate capability gaps and enhance commanders’ ability to leverage OCS in support of the joint force.

 The Joint Staff (JS), J4, Operational Contract Support Division (OCSD):

o OCS Reporting: During the past quarter, Combatant Commands, Military Services, and Defense Agencies reported on OCS legislative mandates to inform the annual Chairman’s Risk Assessment and the JS quarterly assessment of OCS readiness, risk, and shortfalls. Additionally, the OCS Reporting Working Group modified the criteria for quarterly reporting to incorporate mission outcomes. JS obtained visibility of external support contract data—a first ever—to inform strategic quarterly assessment and reporting. The quarterly Chairman’s assessment regarding risk of dependence on contractors was completed and included as an appendix to the Quarterly Readiness Report to Congress in accordance with law.

o OCS Education: Served as OCS Learning Area evaluator for the U.S. Marine Corps War College (MCWAR) Process for Accreditation of Joint Education (PAJE) assessment from October 30, 2017 to November 2, 2017. MCWAR met their Learning Outcome related to OCS. This overall assessment is a credit to MCWAR’s proactive and significant efforts underway in academic year (AY) 2018 to dramatically increase the very limited past AY17 OCS coverage documented in the PAJE Self Study Report of October 2017. MCWAR is using the Joint OCS Curriculum Development Guide to integrate OCS—a two-hour OCS lesson (Lesson 8824 – OCS) in the Joint Warfare Course and OCS content in Joint Warfare lessons (Lesson 8822—The Joint Planning Process and Lesson 8413— Non-Governmental Actors in the Operational Environment).

o Exercises: JS J4 OCSD participated in two planning events and an Academics Workshop for OCS Joint Exercise (OCSJX) 2018, which will be closely tied to the Army’s Warfighter Exercise. Service exercise experiences help to mature the JS multi-pronged approach to refine and institutionalize consistent performance of OCS tasks.

o Individual Training: Delivered two (October and December) Joint OCS Planning and Execution Courses to 56 students. The students at the December course received an updated version of half of the blocks of instruction (BOI). OCSD is updating the remaining half, planning BOIs for delivery in February 2018. A total of 302 students were trained in FY17 and 1,099 have been trained since the course’s founding in 2013. Also during 1st quarter FY18, 134 personnel completed the Joint OCS Essentials for Commanders and Staff Phase 1 and 57 completed the Phase 2 online course. [In August 2017, the course was divided into two separate courses (J40 P-US380A and J40 P- US380B) to better support student and instructor needs]. As of November 28, 2017, 9,607 personnel completed an OCS introductory online course.

o Collective Training: Participated in US European Command’s (USEUCOM’s) Logistics Sustainment War Game on November 13 to 17, 2017 with USEUCOM logistics, intelligence, planning and operations staff; U.S. Transportation Command, DLA, and Service components including special operations forces (SOF). The war game, designed by Johns Hopkins University, created a forum for the participants to analyze in detail each organization’s concept of logistics support to identify and document shortfalls and other problem areas in two simultaneous scenarios—disaster relief on the US Pacific Coast, and a military and humanitarian assistance operation in East Asia.

o Exercise and Training Strategy: On November 20, 2017 RADM Polowczyk, Vice Director for Logistics, led a GO/FO/SES level group discussion to reach consensus on a comprehensive OCS exercise and training strategy for DoD. The community’s previous focus on OCSJX, while valid and useful for its time, has served its purpose and the strategy must evolve to reach the full acquisition and non-acquisition training audiences. The group, with representatives from each Service and DLA, agreed to a framework, which the OCS FCIB reviewed and accepted on November 21, 2017. J4 will work with stakeholders to complete the framework for OCS FCIB review in May 2018.