Two reports released Monday question the efficiency of the drawdown of contractors in Iraq.

The Defense Contract Audit Agency, in an audit released today by the Wartime Contracting Commission, found that KBR, the government's chief logistics contractor in Iraq, is drawing down at a slower pace than U.S. troops.

If KBR continues to reduce staff at its current rate, the Defense Department could waste $193 million on services it doesn't need while troops are reduced, according to the audit. At the current rate, KBR staff will drop 34 percent while military levels will be reduced by 60 percent by the time KBR's contract next August, DCAA said. DoD said it plans to reduce troop levels from 130,000 to 50,000 by August.

But Defense contends the overall reduction of contractors in Iraq is proceeding faster than planned. Navy Rear Adm. Thomas Traaen, vice director for logistics with the Joint Chief of Staff, told the commission that total contractor employee levels are down to 115,000 as of Oct. 1, from 149,000 in January. While he could not reveal the target number, he said it is lower than what was planned.

According to commission data, KBR has reduced staff at half the rate of other contractors. Between February and August, KBR staff dropped from 58,600 to 53,300, a decline of about 9 percent. Over the same period, other contractors' staffs declined from 75,500 to 62,000, a drop of nearly 18 percent.

No drawdown plans

DCAA found KBR has no plans, written or otherwise, to lay out how it will draw down between now and the August 2010 deadline.

"If the contractor proactively develops written contingency plans, it will be able to respond more quickly to optimize staff levels," the DCAA audit said. So far, KBR has not taken action, even though troop levels are already down. In fact, DCAA found KBR staffing levels are slightly higher than they were at the height of the surge 20 months ago.

Lee Thompson, executive director of the Army's Logistics Civil Augmentation Program, said KBR cannot submit a plan yet because the military has not determined what troop levels will need to be supported at various points during the withdrawal. Thompson said his office is gathering that information from divisions, and KBR meanwhile is required to maintain services.

In a separate report released Monday, the Government Accountability Office found that Defense's lack of a clear drawdown plan puts the government at risk of an inefficient withdrawal from Iraq.

Without a plan, the government risks spending unnecessarily on services and risks using equipment and other goods inefficiently, said William Solis, GAO's director of defense capabilities and management, said in written testimony to the commission. Adding to the problem is the lack of an accurate inventory of equipment in Iraq and the lack of a plan for disposing of or redeploying it, Solis said.

In addition, DoD has too few trained oversight personnel, called contacting officer representatives, who are needed to ensure the drawdown is keeping pace with Defense needs, Solis said.

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