Use of Contractors by State Dept. Has Soared: But few officials oversee contracts

By JOHN M. BRODER and DAVID ROHDE
Published: October 24, 2007

WASHINGTON, Oct. 19 — Over the past four years, the amount of money the State Department pays to private security and law enforcement contractors has soared to nearly $4 billion a year from $1 billion, administration officials said Tuesday, but they said that the department had added few new officials to oversee the contracts.

It was the first time that the administration had outlined the ballooning scope of the contracts, and it provided a new indication of how the State Department’s efforts to monitor private companies had not kept pace. Auditors and outside exerts say the results have been vast cost overruns, poor contract performance and, in some cases, violence that has so far gone unpunished.

A vast majority of the money goes to companies like DynCorp International and Blackwater USA to protect diplomats overseas, train foreign police forces and assist in drug eradication programs. There are only 17 contract compliance officers at the State Department’s management bureau overseeing spending of the billions of dollars on these programs, officials said.

Two new reports have delivered harsh judgments about the State Department’s handling of the contracts, including the protective services contract that employs Blackwater guards whose involvement in a Sept. 16 shooting in Baghdad has raised questions about their role in guarding American diplomats in Iraq.

In a report made public on Tuesday, a review panel found that there were too few American officials in Iraq to enforce the rules that apply to Blackwater and other security contractors. It also found that the conduct of the contractors had undermined the broader mission of ending the insurgency and establishing a democratic government in Iraq...[Open in new window]