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Global Reach And Power

File image of a DHL plane under missile attack.
by Merrick Carey
UPI Outside View Commentator
Washington (UPI) Jul 18, 2007
With an award expected this summer for U.S. Transportation Command's major new procurement, DTCI, it is a good time to look at the progress the American military has made outsourcing and privatizing key functions of government. From Iraq and Afghanistan to U.S. Army and U.S. Air Force maintenance depots, major logistics and technical services projects are being handled by the private sector. These reforms are taking long-term financial pressure off the taxpayer and are improving the delivery of government services.

They have been initiated by military and government leaders like the U.S. Army's Paul Kern and Nathan Hill, and U.S. Air Force reformers like Don Wetekam and Grover Dunn. In some cases the U.S. government has even been willing to both compete and team with private companies on important products and services, and would have taken even more liberalizing steps had the Congress not blocked them.

DTCI, which stands for Defense Transportation Coordination Initiative, will turn over the management of major military transport activities to the private sector. Leading teams organized around Northrop Grumman and UPS are competing for this contract. It will start inside the continental United States, and eventually expand to global operations.

The pieces are already in place to make Defense Transportation Coordination Initiative a success. DHL and FedEx are making daily deliveries to U.S. bases in Iraq. Maersk Line, the largest private operator of vessels for the U.S. government, runs 30 ships for the military, including preposition and ammunition ships. That company will be the major private sector player if and when we depart Iraq. APL, another global shipper, pioneered the overland route to Afghanistan, while DHL all but ran the Baghdad airport in the early months of the war. It should be remembered that a DHL plane had its wing hit by a rebel surface-to-air missile in late 2003.

Having a robust contractor presence on the battlefield is a new and dangerous dimension to modern warfare. KBR (formerly known as Kellogg Brown and Root) has lost 105 dead and 300 wounded in the conflicts in Iraq and Afghanistan. Contractors are often used now for difficult convoy missions because they are better able to work security issues with local tribes. Some 51 percent of contractors in Iraq are Iraqis. And embedded repair teams from companies like General Dynamics and BAE Systems keep armored vehicles in fighting condition for this brutal war.

None of this comes without problems. The government probably turned over too much acquisition power to the private sector after the Cold War, so the U.S. Coast Guard and U.S. Navy are rebuilding their ability to organically evaluate and execute difficult modernization programs. And there are gripes in the field when better paid contractors are embedded with the deployed U.S. military armed forces. However, it is doubtful that military personnel have run the numbers on the full value of their pension, housing and healthcare benefits, which likely dwarf anything a private contractor is collecting.

The reach of American global military power is only matched since the dawn of time by the legions of the Roman Empire and the British Empire. And now U.S. private sector productivity and technical expertise in the age of globalization are adding to this already remarkable war fighting capability of the U.S. armed forces.

(Merrick Carey is the chief executive officer of the Lexington Institute, a think tank based in Arlington, Va. that covers defense issues.)

(United Press International's "Outside View" commentaries are written by outside contributors who specialize in a variety of important issues. The views expressed do not necessarily reflect those of United Press International. In the interests of creating an open forum, original submissions are invited.)

Source: United Press International

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India Ready To Offer 7 Billion Dollar Jet Fighter Contract
New Delhi (RIA Novosti) Jun 29, 2007
India has completed the preparation for its largest-ever international defense tender to acquire 126 multi-role combat aircraft, estimated at $7 billion, the Defense Ministry said Friday. A meeting of the Defense Acquisition Committee (DAC), headed by Defense Minister A.K Antony, passed Friday the criteria for the selection of the best proposal submitted by foreign bidders.







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