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Logistics contracts: tips for maximizing an awesome capability: a commander must know what to expect from the contractors supporting his organization to make the best use of what they have to offer
Army Logistician, July-August, 2007 by Rebecca Freeze, Sari Berman
A good commander can command anything. But how well does he use his contractors? Commanders in Operations Iraqi Freedom and Enduring Freedom are finding the answer to this question because an ever-increasing amount of logistics capabilities and the preponderance of base operations functions lie with contractors.
During Operations Desert Shield and Desert Storm, almost the only contractors found within the corps area of operations ran a few rear dining facilities, some buses, and the ever-reliable "gypsy" trucks. Even when Operation Iraqi Freedom I began in March 2003, the Logistics Civil Augmentation Program (LOGCAP) support contract was only requested to support approximately 50,000 troops for 180 days. Today, with LOGCAP supporting and sustaining a force of more than 200,000 personnel, almost every base in Iraq benefits from the LOGCAP contract. From housing Soldiers, maintaining unit vehicles, and transporting fuel, to manifesting Soldiers for R&R (rest and relaxation), almost every logistics function is performed or augmented by a contractor. Given the extensive presence of contractors on the battlefield, it is imperative that logisticians learn how best to manage the awesome capabilities that contractors bring to the fight.
Identifying the Major Players
To obtain the maximum benefit from LOGCAP or any support contractor, logisticians need to understand the roles, responsibilities, and duties of the parties involved: the Defense Contract Management Agency (DCMA), the Army Materiel Command (AMC), the military unit (the user), and the contractor.
DCMA provides contract administration and oversight. This oversight normally is accomplished on site by an administrative contracting officer (ACO). To assist the ACO in providing oversight, DCMA also will assign a quality assurance representative (QAR) to evaluate the contractor's performance and interact with both the contractor and the end user. The ACO is the only individual authorized to direct the contractor to perform specific work.
AMC is the primary client for the LOGCAP contractor. AMC's main responsibility is to be the honest broker and ensure that the taxpayers' money is spent wisely. All LOGCAP support requirements are vetted and adjudicated by the onsite AMC personnel who are known as the LOGCAP support officers (LSOs). The LSO is the face of LOGCAP and the person whom the commander will deal with most often.
The end user, or customer, is a military unit that is augmented by contractor capability. It is the end user's responsibility to provide day-to-day management of the contractor in a specific area or function.
The last major player on the LOGCAP team is the contractor. Each contractor's job is to perform the funded functions outlined in the performance work statement (PWS) to the standards specified.
Understanding the PWS
Over several Operation Iraqi Freedom rotations, a pattern of friction and frustration has evolved between the contractor and service members, keeping units from experiencing the maximum benefits of the contract. Some of the frustration is due to the service member's failure to understand the PWS and how funding affects it. The PWS outlines the tasks that a contractor is to perform; it is comparable to a unit's modification table of organization and equipment (MTOE) capability. However, just as units often cannot perform some missions because of MTOE shortages, the contractor may not be able to perform a function because the Government never "turned on," or paid for, that part of the contract. So, just as a commander has to understand the real-world capabilities of his units, he also must understand the contractor's PWS and what is funded so that he knows exactly what services to expect the contractor to provide.
A commander's natural tendency to lead people also can cause frustration and friction. Realizing that you, the end user, cannot "direct" contractors as you would another service member reduces tension. Contracts are often "performance based." This means that the Army cannot tell a contractor how to perform the task but merely what the end state of the task needs to be and, more importantly, to what standard. That is how the contractor will be evaluated and held accountable.
If you identify a new task that you would like the contractor to do, unlike a Soldier, you cannot just tell them to do it. If the task is not a part of the PWS, you have to identify exactly what you want the contractor to perform and the standards by which the contractor will be measured. These changes then are sent up the chain of command and LSO channels for additional vetting and funding allocation. Once the PWS is finalized and agreed on by both the Government and the contractor and the funding is approved, the contractor can begin the new work. This is not a quick process, and funding is often very hard to justify.
You also cannot direct the contractor to do something that is not a funded part of the PWS. Funding has to be allocated, and a notice to proceed must be issued by the ACO in order to "turn on" portions of the contract. You can best influence funding by justifying to your chain of command why the Government is getting the best bang for the buck by funding that part of the contract. In the case of either new work or unfunded work, remember that, once approved, the contractor will need time to ramp up capability just as units need time to generate combat power.
