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GAO looks at where Pentagon contract awards end up

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Iraqi Soldiers listen to a civilian contractor attached to Task Force Al Asad, talk about counter-improvised explosive device aboard Al Asad Air Base, Iraq, as part of an Operation Inherent Resolve – Build Partner Capacity mission, April 2, 2015. The U.S. and coalition forces participating in the BPC mission work closely with Iraqi Security Forces to build military capability and capacity through training in small-unit tactics, sustainment improvement, and air-ground integration. (U.S. Marine Corps photo by Lance Cpl. Skyler E. Treverrow/Released)

WASHINGTON — The U.S. government awarded more money in contracts to foreign-owned firms located abroad than U.S.-based subsidiaries of foreign-owned firms, according to a government watchdog.

A May 2019 report by the Government Accountability Office analyzed U.S. government contracts during fiscal 2015. In total, the U.S. government awarded $290.9 billion in contracts; of this, $12 billion went to firms located outside of the United States, the GAO found.

The Department of Defense awarded 80 percent of those contracts awarded to firms out of the country, according to the report. Many of those contracts went toward U.S. military efforts in the individual country.

In fiscal 2015, nearly 11,000 defense contracts were awarded for a total of $9.8 billion. This accounts for 26 percent of all U.S. government contracts to foreign firms.

“About a quarter of DOD’s $9.8 billion in aggregate award value were for purchases of fuel, oil, lubricant, and wax. About 9 percent were for education and training services, and about 7 to 8 percent each were for construction of buildings and housekeeping services,” the GAO said.

About 

Kelsey Reichmann is a general assignment editorial fellow supporting Defense News, Fifth Domain, C4ISRNET and Federal Times. She attended California State University.