After consultations with Commanders in theater and extensive analysis, the U.S. Army has decided to continue base life support (BLS) services in Iraq under the Logistics Civil Augmentation Program (LOGCAP) III, rather than transitioning these services to LOGCAP IV. As a result, BLS in Iraq, which includes engineering and sustainment services, equipment maintenance, facility operations, food service, cleaning, laundry, water production, sewage and trash services, will continue to be provided by KBR.

This decision is based primarily on the assessment of Commanders that such a transition during the drawdown could have significant adverse operational impacts. Along with the return of U.S. military personnel, the drawdown in Iraq will involve the closure or transfer of 139 active bases and facilities; management of the 95,400 contractors currently in Iraq (of which 49,400 support the LOGCAP program); and the retrograde of over 2.9 million separate items. In addition to ensuring flexible, seamless and efficient support to the ground commanders, this decision was also based on a careful analysis of President Obama's Presidential Directive for Iraq Drawdown, GAO's concerns, an Army Business Case Analysis, Afghanistan Lessons Learned and estimated costs of transitioning.

Moreover, if the Army issued a task order for BLS to new contractors under LOGCAP IV, the transition would not be complete until February 2011 assuming prompt contract award without protest. The current timetable for the completion of the responsible drawdown of U.S. Forces from Iraq is December 2011.

This decision does not change the Army's determination to compete other task orders for contracted support in the CENTCOM AOR under LOGCAP IV and other contracts. Based on Task Orders awarded in the CENTCOM AOR, approximately 76% of all work will be transitioned to the LOGCAP IV contract. Additionally, the Army has taken other steps to improve the efficiency and effectiveness of contract support. Steps include: increased numbers of contracting officers, contracting officer representatives and subject matter experts overseeing contracts; reduced use of cash for local contract payment; command emphasis on contract administration management; stand-up of Joint Contracting Command Iraq/Afghanistan; and management of and accounting for contractors in theater.