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Yo, Ledger --

Since Ledger posed me some interesting questions in the comment section a couple of days back (rather than relying on my spotty e-mail reading habits), I figure I’ll answer right out in the open so that
a. anybody (who isn’t / hasn’t been a contractor) who’s also curious about the subject won’t start bugging me in the comments and
b. anybody (who is / has been a contractor) who’s got a completely different set of experiences can start bugging me in the comments.

1. Are contractors really so cost efficient that they replace two divisions (let’s say a division is 15,000 men)?

Well, you wouldn’t *want* to replace an entire division or two (man-for-man) with contractors because
a. it definitely wouldn’t be cost-effective, even in the long run and
b. that infantry gig is too rough on the knees when you’re my age.
What *is* cost-effective is replacing small elements (say, platoon-to-company-sized – and not from the tooth, but from the tail) with an even smaller number of high-speed, low-drag, multitalented, multitasking, Jack-of-All-Trades-and-Masters-of-a-Whole-Bunch contractors, such as, well, *me*. Contractors function most-effectively in a supporting role, freeing up uniformed folks to weight the pointy end. F’rinstance, six of us contractor-type instructor pilots will be replacing about a dozen Air Force ‘structor pilots plus a half-dozen ground instructors and a couple of flight simulator operators on the fixed-wing side. When the rotary-wing portion opens up, I’ll be teaching that group, too, and six more contractor IPs will replace all the Army IPs plus the Army ground instructors *and* augment the two contractor simulator operators. Our one logistics guy will replace four military supply types.
Another thing you get is focused specialization – say, you’ve just been awarded the gate-guard portion of the Force Protection contract for an LSA – the first thing you do is hire vet-MPs and -APs, because they’ve already spent at least one tour being successful at guarding gates. They’ll hit the ground running, rather than spending “unproductive” time training up for the job, and chances are *excellent* that they already know all the sneaky tricks the opposition uses to try to get HE surprises into the base.
Don’t forget, most contracts are short-lived (a year or three), so the contractors “go away” sooner than troops do -- at least, until the next contract award, which may be for something entirely different in an entirely different area. Since the better part of the Defense Budget is obligated for personnel (pay and allowances, etc.), you hire contractors for the short run and spend a boatload of money, but you’re saving it in the long run because you’re not paying for training, base pay, bonuses, family housing for dependents, etc., for the equivalent number of troops over the course of several years (twenty or thirty), nor are you incurring obligations for their retirement pay.

2. Do contractors really make $400 a day or about $140,000 per year? I am sure rotor wing pilots like BillT would be paid a higher amount because of his skills. Is this $400 a day net take-home pay?

The salary depends on the job description, the amount of physical danger involved, the outfit that was awarded the contract and the hiree’s experience, pretty much like any job in New York, Philly, Amsterdam or Oslo. Oh, yeah – the gummint sets terms, too.
I worked with a guy in Pakistan who made an *obscene* amount of money as a helicopter owner-operator in California and was making less on this particular contract than he would have by supporting the average Hollywood mega-production; on the flip side, I have a couple of wheeled-vehicle mechanic buds in Kuwait and a fellow aviator in Kazakhstan who all make twice what they’d make working stateside.
Whether or not your salary is tax exempt depends on whether or not you spend at least 330 days OCONUS; if you do, your earnings up to $84-point-something-grand are tax-free. There are additional stipulations and requirements for increasing your tax freedom from the IRS, but then you incur Host Nation tax obligations.

3. Do contractors die in higher numbers than their military counterparts thus, justify being highly paid?

Depends on the job, your own survival skills and pure luck. Most of the high pay offered is because the companies hiring want to attract the best talent, and the best talent can afford to figure the odds and be picky. And, since the companies are offering the bucks, *they* can afford to be picky when they hire.
Have there been a *lot* of contractors killed? Yes. But if you compare the stats (numbers in-country and numbers of casualties) for both contractors and troops, the percentage for each group is about the same.
However, don’t forget that most contract jobs in nasty areas are pretty mundane – satellite commo systems setup and integration, avionics circuit-board repair, HESCO barrier installation, counter-mortar radar calibration and stuff like that -- the “go-in-harm’s-way” security types probably suffer marginally more casualties, but there are plenty more scuzzballs who prefer to pick on “softer” targets.

4. Do contractors depend on the military when they get into a jam?

Most of us depend on the military for pretty much everything we don’t bring with us – security, housing, cute nurses – and, since most of us work in the tail and not the tooth, we have neither the firepower (have you priced Ma Deuce ammo lately?) nor the industrial-strength toys that only sovereign nations (or John and Murray) can afford. In my particular situation, we’ve worked out a deal with the QRF (Quick Reaction Force) guys to cover us in case we faw-down, go-boom due to hostile fire or mechanical failure.
The contractors who work outside the wire (most teachers, construction workers, truckers, etc.) *usually* travel with armed escorts, either allied troops or local-hire bodyguards. Those who don’t travel in a convoy generally pack sufficient firepower to suppress a small-arms ambush (in Pakistan, we had a ram truck as lead vehicle and eight guys with subguns in a thin-skin SUV as trail). Those who travel solo are sometimes lucky and sometimes not.
As far as the armed security type contractors go (e.g., Blackwater), I know of several instances in which
a. troops charged to contractor rescue,
b. contractors charged to troop rescue and
c. blue-on-blue firefights broke out between troops and contractors because of crappy planning and really, really *sloppy* intel work. Plus atrocious Threat Recognition on both sides. And I’ve talked with participants from both sides of all three types (the last one *after* their tempers cooled – the advantage to being both retired Army and a contractor is I can walk in both worlds without betting beaten up in either).

So much for personal observations. Anybody else care to expound (or expand) on the subject?

Hold the e-mails – I’m still working my way through December…

9 Comments

BillT, Please forgive a real old fart's question. The question I have is this, Under the "Articles of War" or the UCMJ, presently as it is called, "How are contractors viewed in the actual 'Battle Space'?" This is a question which should be seriously considered. These people are NOT in uniform.
 
you hire contractors for the short run and spend a boatload of money, but you’re saving it in the long run because you’re not paying for training, base pay, bonuses, family housing for dependents, etc., for the equivalent number of troops over the course of several years (twenty or thirty), nor are you incurring obligations for their retirement pay. Hola, Bill... I have no comment from experience, but things are not nearly as clear cut, even, as you've shown. I knew an Navy E7 SEAL in 2005 who was paid about $70K to re-up because he could have earned a lot more than that working for Blackwater (this fellow was WAY, WAY qualified for a number of things), but THEN the Navy asked him if he wanted to be a Warrant, which he thought would be cool so he applied, but THEN the Navy came back and offered him a Limited Duty Officer assignment, which he liked even more, so off he went to be an Ensign or whatever the first rank is for Navy Ossifers, and he got paid a sizeable bonus for that, AND he got a nice raise (if not a demotion from Chief). I am not complaining, I think he was worth it, but contractors have to come from somewhere (your point about MPs, etc.), and that training is being paid for by the Government anyway. Also, though retirement and long term med costs are a real issue, it costs a lot more to train up new folks than it does to keep good ones unless the good ones can make more money as contractors, and Vets can get VA care anyway if they need it. I'm sure my buddy would not have been paid the re-up bonus he got if there hadn't be amarket for his skills created by the Government hiring contractors. I know there is more to it, even, than that, but I personally think Rumsfeld and crew sold Congress a set of new invisible clothes with all that smaller, lighter, faster, junk. You know I haven't looked in a while, but I have to wonder how the reality has stacked up against the predicted manpower needs Rumsfeld got so upset about when the war started. Wanna bet we're over? Just a thought or two.
 
"How are contractors viewed in the actual 'Battle Space'?" Mostly as background noise. But some of us *are* under the UCMJ as stipulated, by name, on our official DoD orders. Those who fall under DoS are a different ball of wax. ...contractors have to come from somewhere (your point about MPs, etc.), and that training is being paid for by the Government anyway. Hiya, Sanger -- where've you been hiding? The costs of troop training and contractor trainup come from different bags of money (and re-up bonuses come from yet another bag), but troop training, which is continual (we can both testify to *that*) is a recurring expense which mounts up pretty fast when the training involves multiple CALFEXs and NTC/JRTC rotations. ...how the reality has stacked up against the predicted manpower needs Rumsfeld got so upset about when the war started. Wanna bet we're over? No. Bet. And my personal opinion is that we're not only still short of what reality requires, but we're focused in a couple of wrong directions (particularly in the Both Colors of Blue area).
 
Heh. Sanger said he was going to "ease back in"... wonder what this portends once he's *comfortable*? 8^ ) Welcome back, dude.
 
Hiya, Sanger -- where've you been hiding? Been avoiding, mostly. And not to beat my own drum so much as to avoid boring folks here with stuff they might not care about, but the long answer to that question is posted at The Grand Retort under Finding My Voice. I hope it makes sense.... Also, I've another site now too, here. It has a photo/image gallery too. Hopefully I won't be overwhelmed by keeping two of them going... We'll see. BTW, John, nice double-tap.... :-)
 
Heinlein made a point of the issue in Starship Troopers that every member of the Mobile Infantry was a fighter. Anything they needed done that wasn't combat was contracted out. Sure, the troopers did a lot of things for themselves but they didn't have anybody assigned as 'cook' or 'laundry'. If you were in the field you did it yourself. If you were someplace safe enough to have non-combatants around then it was handled by the hired help. A lot easier to train someone to be a cook than to be a cook / troop. No 'extra' cost for troops to guard the cooks either since the cooks are only in places the troops are already guarding.
 
No 'extra' cost for troops to guard the cooks either since the cooks are only in places the troops are already guarding. Sure thing, if the cooks are just cooking for the troops. But how 'bout teachers and interpreters operating under the DoS aegis? No. Troops. Engineers dredging the channels into a country's only seaport? No. Troops. Pipefitters, electricians, firemen, sheetmetal cutters and welders working in the oil megafields? No. Troops. In the Long War theaters, no troops + armed security requirement = hired hands toting smokepoles OR dead teachers, interpreters, electricians, et cetera...
 
Ah, but Bill - the security details can also be hired help. Helps with the little problem that soldier != police
 
Ummm -- we appear to be in violent agreement on that point...
 
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