How Military Contracting Hides Human Costs and Increases …

Jul 9, 2020 · Military contracting was sold to the American people as a way to reduce the cost of military operations, yet the result has been quite the opposite. Recent research of mine has shown that rather than reduce costs, military contracting — or what I call the “Camo Economy” …

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Loopholes For Military Contractors Are Costing You Money

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Currently, of the contracts that require price justification, military contractors only need to explain the prices they’re charging the DOD if the contract exceeds $2 million. This means DOD …

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Corporate Power & Profiteering | Costs Of War

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Key Findings The post-9/11 wars have caused military contracts to increase to their highest levels since World War II. Pentagon spending has totaled over $14 trillion since the start of the war in …

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FAQs about How Military Contracting Hides Human Costs and Increases … Coupon?

How does contracting affect the military?

As military contracting increases, and contracts become more inclusive and longer-lived, the military’s own capabilities and workforce get hollowed out. This puts upward pressure on the federal defense budget, as DoD raises pay to retain its talent; in-house costs rise while concomitantly contract payments increase. ...

Why is military contracting so expensive?

Instead, the paper shows that military contracting is at least as expensive, and often more expensive, than if the military were to perform the same services in-house. This is because contractors lack competitive pressures to reduce the prices they charge to the government. ...

Are military contractors a cost reducer?

Over nearly two decades, government officials, private companies, and conservative think tanks have sold the idea that military contractors are a cost reducer, yet in reality, the growth in military contracting—or what I call the “Camo Economy”—has actually increased the overall cost of this country’s military operations. ...

How will the camo economy affect the military?

As the scale and the profit levels of military contracting decrease, the Camo Economy will generate less of a pull on the labor supply, which should make it easier for the military to attract and retain servicemembers. ...

Should DoD reduce its funding to contractors?

Secondly, DoD should reduce the percentage of its funding that is channeled to contractors, keeping more of its services in-house, particularly those services that are vital to the military’s own capabilities, including servicing weapons and equipment. ...

Will a cost-type contract increase DOD spending?

Every contract that is a cost-type contract has the potential to unnecessarily increase DoD spending because contractors will have no incentive to reduce costs. While the majority of DoD contracts between 2008 and 2019 were fixed-price, the DoD still spent $1.2 trillion on cost-type contracts. ...