More (And More) Billions In Iraq
This just arrived to my in-box from Laura Peterson, a national security investigator over at Taxpayer's For Common Sense.
"The Congressional Budget Office (CBO) got a lot of jaws dropping this week with a report estimating the U.S. has spent $85 billion on contractors in the Iraq war, 20 percent of the total cost to date. A closer reading of the report, however, indicates that bracing figure is actually much, much higher."
Here's some of what Peterson contends:
First of all, analysts did not include any contracts performed in countries outside the Iraq "theater," meaning they excluded contracts for weapons manufactured and maintained stateside. These contracts, as anyone who follows the industry knows, are very lucrative. Take the Mine Resistant Ambush Protected Vehicles: Congress has given DOD more than $22 billion to build some 15,000 of them, most if not all of which will be constructed in the U.S. Just last month, General Dynamics was awarded a $550 million contract to manufacture nearly 800 MRAPs.
Billions will also go to contractors to rehabilitate equipment worn down on the battlefield, a process known as "reset.' The Army has estimated it will need at least $13 billion per year for reset, most of which will go to the procurement and "operations and maintenance" (O&M) budget accounts where contractors are most often found. A September 2007 report by the Government Accountability Office (GAO) said that the Army received $17 billion in fiscal year 2007 alone for reset, double the amount from the previous year.
"The CBO estimate also neglects contracts in the $50 billion classified intelligence budget, of which contractors claim a significant portion: Estimates of intelligence funds going to contractors range from $42 billion to $35 billion."
The logic seems sound to us, but what do you think? Is this hype or fact?
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Posted by: SL3 | August 25, 2008 11:10 AM
Posted by: Skeeter3 | August 25, 2008 2:45 PM
Posted by: LALA | August 26, 2008 2:11 AM
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