Commission on Wartime Contracting

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Hearing May 4, 2009

LOGCAP: Support-Contracting Challenges in Iraq and Afghanistan

On May 4, 2009, the Commission on Wartime Contracting in Iraq and Afghanistan held a hearing entitled “LOGCAP: Support-Contracting Challenges in Iraq and Afghanistan.” The Commission received testimony from officials of the Army Contracting Command, the Defense Contract Management Agency, the Defense Contract Audit Agency, and the Army’s Logistics Civil Augmentation Program (LOGCAP) Office.

During the hearing, Commissioners considered issues including contracting and property-management challenges relating to the draw-down of forces in Iraq, the transition from the LOGCAP III contract to the more competitive LOGCAP IV, contractor performance and the adequacy of contract oversight, as well as the structure and administration of LOGCAP.

Mr. Jeffery P. Parsons, the U.S. Army Contracting Command Executive Director, discussed the contracting aspects of LOGCAP, while Mr. Lee Thompson, the LOGCAP Program Manager, focused on the programmatic aspects. Mr. Charlie Williams, the Director of the Defense Contract Management Agency, addressed LOGCAP oversight, and Ms. April Stephenson, Director of the Defense Contract Audit Agency, addressed cost and pricing related issues.

LOGCAP comprises two concurrent contracts: LOGCAP III and LOGCAP IV. LOGCAP III was competitively awarded in December 2001. All task orders under the contract were assigned to KBR with no further competition. The majority of logistics work performed in theater occurs on this contract. LOGCAP IV was awarded in April 2008. The goal is for work to be transitioned from LOGCAP III to IV, as LOGCAP IV requires the three vendors, DynCorp International LLC, Fluor Intercontinental Inc., and KBR, to compete for individual task orders under the overall contract, thereby “creating a competitive environment meant to control costs and enhance quality,” according to the April 2008 award statement issued by the Department of the Army



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