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LAZARUS AT LARGE
Taking the war private

David Lazarus
Wednesday, January 21, 2004 San Francisco Chronicle
Chronicle Sections

You may have noticed that Halliburton, Vice President Dick Cheney's former company, received another $1.2 billion contract the other day to help rebuild Iraq's oil industry. The firm's commitments in Iraq are now valued at more than $5 billion.

Less well known is the role private contractors are playing on the security front, participating alongside troops in combat and peacekeeping duties.

An investigation last month by the British newspaper the Guardian revealed that private companies are now the second-biggest U.S. coalition partner in Iraq. There are now at least 10,000 private military contractors on the ground, compared with about 9,900 British troops.

We are, it turns out, outsourcing the war.

"It's a sea change," said Peter Singer, a national-security analyst at the Brookings Institution and author of "Corporate Warriors," which charts the rise of the private sector in modern warfare.

"The war in Iraq has taken an existing trend to stunning new levels," he said. "We now have an industry that, in less than a decade, is making more than $100 billion in revenues a year."

Roughly a third of the $87 billion to be spent by the United States this year in Iraq and Afghanistan has been earmarked for private companies. Much of that cash will go toward rebuilding infrastructure and providing logistical support for troops.

But a significant portion -- solid figures are hard to come by -- will fund training of Iraqi soldiers and police by private contractors, and security operations at strategic sites by private guns-for-hire.

Corporate forces are routinely placed in harm's way in Iraq and have exchanged fire with Iraqi combatants. They kill when necessary. And they get killed.

On Sunday, one private contractor, Vinnell, a subsidiary of defense giant Northrop Grumman, anticipated calls from anxious relatives after a suicide bomber in Baghdad killed at least 20 people outside a facility where many security companies have their offices.

"All employees are accounted for and are OK," Vinnell said in a recorded message. The company received a $48 million contract in 2002 to help train a new-and-improved Iraqi military.

U.S. officials say there have been hundreds of attacks on private contractors in Iraq since the country was invaded last March. Of this number, several dozen contractors have been killed or injured. A more detailed breakdown of casualties is not available.

"They're not being counted against the ledger," Singer noted. "Contractors aren't factored in when figures are given for troops killed or injured in Iraq. There's no official accounting of this. Almost everything we know about them comes from the few stories that get told and a lot of rumors."

Firefights have been reported between private military contractors and Iraqi rebels. The Washington Times quoted an unnamed former special forces member, now working as a gun-for-hire in Baghdad, as saying that contractors have shot and killed Iraqis trying to loot government buildings.

"It's Iraq," the contractor was quoted as saying. "You're accountable to nobody."

By and large, the for-profit armies operating on the periphery of the Iraqi occupation are comprised of former soldiers and military officers who have chosen to take their unique skills to the private sector. Employees of Halliburton's Kellogg, Brown & Root subsidiary are protected night and day by a contingent of fierce Nepalese Gurkhas.

One leading contractor, DynCorp., says on its Web site that it's now also seeking former law-enforcement officers "to participate in an international effort to re-establish police, justice and prison functions in post-conflict Iraq."

DynCorp. received a $50 million contract last year for law-enforcement support in occupied Iraq. Other prominent contracts include the hiring of Virginia's Custer Battles for $16 million to provide security at Baghdad Airport and Britain's Erinys for $39 million to help protect Iraq's oil fields.

"How do you carry out command and control when you have so many entities on the ground?" asked Brookings' Singer. "I even get military officers asking me how they're supposed to operate in such conditions."

Like a Silicon Valley tech firm with too much programming to handle, the U.S. military has been forced to outsource work because it doesn't have enough in-house personnel to meet demand. In 1990, the United States boasted a standing army of 2.1 million troops. It's now about 1.4 million.

For this reason, according to Singer, there is presently 1 contractor in Iraq for every 10 foreign soldiers -- 10 times the number seen during the first Gulf War.

And the outsourcing of global conflicts will likely grow in magnitude.

"The U.S. military is stretched thin right now," Singer said. "Do we expect a world in which there will be fewer demands on it? No.

"What we're seeing private companies doing isn't just logistics like serving food," he added. "It's incredibly important things like the supply chain. It's military recruiting and training. It's actual weapons operation."

President Dwight Eisenhower warned in 1961 of the "unwarranted influence" of the so-called military-industrial complex. "The potential for the disastrous rise of misplaced power exists and will persist," he observed.

"Eisenhower is probably rolling over in his grave these days," Singer said.

David Lazarus' column appears Wednesdays, Fridays and Sundays. He also can be seen regularly on KTVU's "Mornings on 2." Send tips or feedback to dlazarus@sfchronicle.com.

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