Contractors in Iraq
USAID -15 July 2004
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Contractors: Perceived Needs
orne contractors hesitant about continuing to
do business in Iraq
- GE, Siemens, Bechtel, Blackwater, RTI,
Lucent, CAOA
Contractor lack of confidence results from:
- lack of information
- perceived indifference to their needs
- uncertainty during transition from CPA to Iraqi
sovereignty
- lack of clear USG policies, support, rules

Contractors: Realit
• 1 00+ KIA to date
• Blue-on-blue incidents
• System breakdowns (event response)
• Ad-hoc organizational responses and
efforts
• Difficulty in determining appropriate rules

ATTACKS by MONTH
Current as of 26 JUN 04
1800
1600
1400
1200
Ill
~ 1000
t'll
~ 800
600
400
200
0
NOTE: April and May Data Is Not Complete Due to Loss of Data and
Data Not Provided

ATTACKS by TARGET
Current as of 26 JUN 04
700
600
500
(f)
~ 400
(.)
~ 300
(
200
100
0
.~l 4~ i;; ?rl l· l'
rrl cl r,? rl ~ ~~
v ~
,~~
NOTE: Data is for the month of June 2004

ATTACK TIMES
(CONVOY MOVEMENTS)
Current as of 25 JUN 04
100
90
80
70
~ 60
u 501..1------
~
~ 40
30
20
10
0
~~~~~~~~~~~~~~~~~~~~~~~~
~~~~~~~~~~~~~~~~~~~~~~~~

Contractors: Perceived Needs
What Contractors want (based on their email and letters):
1. 2. 3. 4. Definition of legal status and appropriate immunity
Clear military policy on protection and safe haven
The ability to obtain insurance for operations in Iraq
The ability to defend themselves by carrying arms or
hiring private security contractors
5. A sense of an overall USG gameplan for contractors
6. Better communications (internal/external,
tactical/strategic)
7. Air support for medevac, personnel movement, etc
8. More ability to export US equipment & weapons

Contractors: Perceived Needs
In a two-hour meeting with the security directors of 9 (non-PSC) contracting
companies on 29 June, they identified their top 3 desires:
1. Air Support
• Civilian air for medevac, personnel movement, logistics
• Rotary and fixed wing
• Has been encouraged by PMO, but can't get air rights
2. Better Communications
• Ops:Through a contractor security ops center, (as planned).
• Stratcomm: From USG to their corporations, on a strategic level.
• Tactical: Better HF capabilities in-country. More bandwidth, etc.
3. Help with Export License roadblocks
• DOS permissions for export of firearms and PPE
Also expressed confusion/concerns about CPA Order 17 and CPA Memo
17.

Efforts to Date
• CPA Order 17, Memo 17
• Interagency Policy Guidance
• Several DOD Staffing Initiatives
• PCO Ops Center
Details on all to follow in next slides I I I

CPA Order 17 Revised
TATUS OF THE COALITION PROVISIONAL AUTHORITY, MNF ·IRAQ,
CERTAIN MISSIONS AND PERSONNEL IN IRAQ
• Contractor Privileges
- Exemption from Iraqi Laws governing contract terms and conditions
- Exemption for Iraqi licensing, registration or inspection laws governing:
• Vehicles
• Vessels
• Aircraft (Note: All must carry 3rd party insurance)
- Exemption from Iraqi taxes (corporate, income, social security) and visas, licenses and
permits without payment of restriction.
- Freedom of movement throughout Iraq. Free importation without duty, inspection, or
customs fees or taxes of all equipment necessary to perform mission.
- Free usage of all roads, bridges, waterways, and airports without payment of tolls, navigation
or landing fees.
Contractor Immunities
-Immunity from Iraqi legal process and jurisdiction for acts pe~ormed within the scope of their
contracts.
-Immunity from any form of arrest or detention.
(Note: Contractors are subject to the exclusive jurisdiction of their Sending State. Immunity
from Iraqi legal process may be waived by the Sending State)

CPA Memorandum 17
REGISTRATION REQUIREMENTS FOR
PRIVATE SECURITY COMPANIES (PSC)
All PSCs must be registered with the MOT with operations regulated by the MOl.
Licensing
Register with MOT (Business License).
Apply to MOl (PSC Registration and Vetting Office) for Operating Permit (e.g.
background check intended to prevent hostile elements from legitimizing
activities).
Grace period until31 AUG 04.
Bonds/Insurances
Bonds: All PSCs submit $25K bond to MOl. Additional sums may be required
by MOl on a pro-rata scale. Sixty day notice period.
Bonds may be forteited if:
-PSC fails to provide updated information to MOl every six months.
-Employees or companies breach Iraqi law. (Decisions to forfeit bond or
revoke operating License by MOl must be reasonable and proportionate to the
offense. Mitigating factors to be considered).
Insurances: All PSCs must have public liability insurance in an amount to be
published by the MOl. Exemptions may be granted by MOl if securing such
insurance is not practicable.

CPA Memorandum 17
REGISTRATION REQUIREMENTS FOR
PRIVATE SECURITY COMPANIES (PSC)
Weapons
ALL PSC employees must obtain and carry an MOl-issued weapons card
PSCs must obtain weapons import certificate from MOl when importing weapons (Type, serial numbers)
MOl must receive proof of Sending State registration, certification of weapons training, serial numbers and
type of weapons, names of employees, details of intended mission, and copies of contracts.
PSCs must:
Update MOl on weapons inventory and serial numbers every six months or risk license fo~eiture
Store weapons in secure facilities
Ensure employees only use authorized weapons (CPA Order 3) (no private weapons)
Ensure employees carry weapons cards.
Ensure no law enforcement activity (criminal investigations)
Audits
PSCs are liable to periodic audits by the MOl to be carried out by an independent auditing firm to ensure
compliance. Financial audits may be instituted by MOT.
Revocation or Suspension of Operating License
If a PSC or employee breaches Iraqi law, the MOl may suspend or revoke the operating license. The bond
may also be fo~eited. (Reasonableness-proportionality and mitigation standards apply).
Oversight Committee
the Memo 17.
MOl will establish this committee vested with general inspection and auditing responsibilities required by
Compliance
All PSCs must ensure employees comply with (ROF-AnnexA), and Code of Conduct (Annex B)

Current Staffin Efforts
1. Congressional testimony, inquiries
2. Interagency Policy Guidance memo
3. CENTCOM-originated weapons policy
4. DOD Directive and Instruction on Contractors
5. DOD policy letter (never issued)
6. Chief of Mission Weapons Policy
7. J-3 WARNORD to CENTCOM
8. USAID memo to OMB about insurance waivers
9. PMO and MNFI procedures for contractor ops

• Developed from revisions to v 2.0 (23 Jun 04)
Purpose:
• Provide immediate guidance to contractors working in Iraq
• An Iraq-centric blueprint for contractor coordination and security
Features:
Cerlification and Tracking:
Certification Requirements (CSO, PCO development with ESG)
Tracking Process (registration with CSO, database)
Weapons Policy Overview:
Weapons Standards (safety rules, ROF)
Weapons Control and Training:
Compliance with certification Requirements (CPA 17, CPA Memo 15)
Distinct standards for those not assigned to the COM (DHS, DOJ)
Individual Armed Contractors (lACs) (COM-CENTCOM process, MOl permit)
Identification Cards ( COM-CENTCOM policy for access to servies, facilities)

• Developed from revisions to v 2.0 (23 Jun 04) and v 3.1 (2 Jul 04)
Security Operations Coordination Procedures:
Coordination (de-confliction, blue-on-blue)
PCO Security Operations Center (objectives, functions)
Non-PCO Contractor Participation (encouragement to participate, costs)
Military Support Services to Contractors:
Legal (privileges and Immunities under CPA 17)
Administrative (CSO for IRRF contractors)
Emergency Security Services (responsibility for own protection unless
enumerated in contract. QRF may be available through SOC and regional
CMOCs)
Industry Assistance for Security (OSAC functions):
Safe Haven (access only allowed per rules of area commanders)
MILAIR (per JTR rules)
Medical (lAW MOA between DOS-DOD)
Medevac (CENTCOM)
Mortuary (CENTCOM and COM (Consular Affairs Section
Organizational Chart for Contractor Tracking and Security Coordination

Contractor Tracking and Security Coordination
CENTCOM ············
···················· COM
MNFI
IRMO PCO
RSO
CSR
Nat'l COM
CMOC MOC/
(fwd) BOG
Nat' I CMOC
(main)
Project and Contracting
Operations Center
(security, movement, construction)
Contract
Support
Office
MNCIMSC
Contractors, including PSCs
Regional CMOCs

PMO Construction Program
•
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Movement Control Center
• Command and Control
• 24/7 Operations
• Communications link/reach back
• Movement control and tracking
• Coordination
• Information resources
• Integrator of security, resolves conflicts
• Continuous visibility of PMO related movements

PMO OPERATIONS CENTER
SENIOR WATCH OFFICER
CONSTRUCTION
OPERATIONS
CENTER
(COG)
LOGISTICS ··
MOVEMENT/·.·.
1
·· CONTROL··
SECURITY ..
0PERATIONS
CENTER.·.·
.. CENTER ..
•• .. (LMGC) .. (SOC)
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.
: IRAQI
CUSTOMS
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~~I I I I I II I I. I I I I I I I I I I I I II I I I I I 1 1

WARN ORO
• Discussion of DOD WARNORD to
CENTCOM
- Background
-Action required
-Due Date

ontractors in Iraq: Addressing Issues
Issue Addressing the Issue
Privileges and Immunities CPA Order 17
Rules for PSC and Weapons CPA Memo 17
Tactical Coordination/Comms PCO Ops Center
Overall Gameplan Interagency Policy Guidance Memo
Better Comms (strat. and tact.) OSAC, PMO, DOD comms/info
Export License Roadblocks Interagency efforts
Ability to get Insurance Interagency efforts?
Civilian air support Interagency efforts
Clear DOD protection policy WARNORD and subsequent guidance
DOD Directives, Instructions

Contacts
• For DOD side of interagency:
-
(b)(6)
(b)(2),(b)(6)
(b)(6)
•
• For DoS leads:
- Mr. Bob Godec, godec~@state.gov
• 202-647-6645