CBO eyes contractors in Iraq

WASHINGTON (CNN) - The United States spent $85 billion on contracts in Iraq and surrounding countries in the first four years of the war and is relying on greater numbers of contract employees than in any previous war, according to a government report released Tuesday.

Based on war contract spending patterns since 2004, the United States could top $100 billion in spending for contractor operations in Iraq by the end of 2008, according to the Congressional Budget Office (CBO) report's figures.

The study found that a fifth of the spending on the Iraq war has gone to contractors. Between 2003 and 2007, 70 percent of the $85 billion worth of contracts were for work inside Iraq. The other 30 percent went to contracts in surrounding countries such as Kuwait, Bahrain, Qatar and Saudi Arabia, the report said.

Contractors in and around Iraq have been used for tasks such as serving food, cleaning and security for the U.S. and Iraqi governments, according to the report. Most of the contracts were for logistics support, gas and diesel fuel and food.
–From Pentagon Producer Mike Mount