Urban Legend v. The Truth

Each day, I read some article, some blog entry, or see some piece on the private security industry and every day I see the same inaccuracies being recycled and restated as if they were the truth. The problem with that is eventually, smart people read it, believe it, then use it in more mainstream stories and, voila! It's fact. Except, when it's not. Below are a few of the more well-known legends with some truthful follow-up.


1. Legend: PSCs are not accountable and Amb. Paul Bremer gave them total immunity.


Truth: CPA Order 17 gave immunity to contractors with regard to the terms and conditions of their contracts. Murder, rape, trafficking, black marketing, etc. are not part of any terms and conditions I have ever seen, therefore they could be charged under Iraqi law, the Military Extraterritorial Jurisdiction Act (MEJA), the War Crimes Act of 1996, and now, apparently the UCMJ.

** Note: In truth there is a robust legal framework, it is the investigation and enforcement phases that need a lot of work.

2. Legend: PSCs suck the military dry of talent.

Truth: A July 2005 GAO report said that there was not empirical evidence to support that claim. Indeed, men and women join and leave the military for various reasons. I am sure some left with the thought of working for a PSC but that is an exception. Additionally, most major corporation in America, like General Electric have a junior officer/senior enlisted recruiting program, to say nothing of the airline industry. I don't hear anyone complaining about their efforts.

3. Legend: There are 25,000 PSC contractors in Iraq

Truth: OK, that number might be close to correct, but only 4,000-5,000 of them are Americans. The rest are third-country nationals, and the overwhelming majority are Iraqis providing security in their own country. Additionally, of the 126,000 or so total contractors in Iraq, only 17% are American.

4. Legend: PSCs pay $1,000/day.

Truth: If anyone was paying that much, they are no longer in business because they clearly didn't understand the cost of labor, the market, and well... everything else. Half of that and less is more like it. There is also debate around pay for contractors versus pay for active-duty Soldiers. Using the DoD's own numbers, the gap, where there is one is negligible at best. The reason? Contractors have to pay for housing, healthcare, insurance, 401k, etc. on the back end and they have no guarantee of future work. I have a spreadsheet that shows how small the gap is but I couldn't get it to post properly. I will work on getting someone smarter than me to help.

5. Legend: PSCs are "mercenaries"

Truth: A term of emotion, the fact is that PSCs do not fit any known definition of mercenary. In this report by the last UN Special Rapporteur on the Use of Mercenaries made a distinction between mercenaries and PSCs. Although there is now a Working Group formed that I am told is not as sympathetic as the former Special Rapporteur (who is a now a member of the working Group). Additionally, "mercenary" means something different to Africans and to Europeans, further clouding the issue. Who best fits the UN definition of the term, "mercenary"? UN peacekeepers themselves in many cases. Many third-world nations actively recruit to fulfill their UN mandates to ensure the money continues to flow. Of course, that money may not go to training and equipping the peacekeepers, but to other more pressing national financial needs.

6. Legend: PSCs gouge the government.

Truth: The U. S. Government through GAO, DCMA, DCAA, SIGIR, and other offices have very sharp pencils. When an investigation does occur, these offices are equipped to identify fraud, waste, and abuse, but they each have staffing challenges at the moment. Additionally, most PSC contracts are "firm fixed price" instead of "cost-plus".

**Note: We will have a Contracting 101 post in the very near future since everyone seems to have a different understanding.

7. Legend: PSCs hire anybody.

Truth: The reputable firms hire retired and former military, law enforcement, intelligence, logistics, and other professionals. Most, if not all, have NCIC checks, physical fitness tests, DD-214 reviews, and clinical psychological evaluations. When necessary, full background checks are conducted by the U. S. government at the SECRET and TOP SECRET levels. Additionally, all prospectives must meet certain training standards, undergo human rights training, peer reviews, and exit interviews.

Does this answer the mail? Of course not, but it is a start in beginning to debunk all of the urban legend surrounding private security companies.

Tomorrow: CONTRACTING!