The Evolving Contingency Contracting Market PKSOI Papers | Page 4

FOREWORD The contingency contracting industry has shifted markedly in recent decades. The events of 9/11 led to a complete reorientation of military and stability operations activities worldwide such that the primary operating theater of many existing companies shifted almost entirely to Afghanistan and Iraq, while government demand also allowed for the creation of a myriad of new private entities to provide contingency contracting services. As U.S. Government (USG) contracting requirements react to drawdowns from these two concurrent large-scale ground engagements, the nature of the primary goods and services provided by the private defense industrial base will respond accordingly. This transition away from private company support of large military engagements has also been coupled with a reorientation of industry focus away from combat environments towards support operations in increasingly frequent, but risky, stability operations. These types of operations necessitate augmented private sector support for commercial efforts in austere environments, as well as international missions that have shifted from UN “Chapter VI” peacekeeping missions to increased peace enforcement missions of the “Chapter VII” variety. The Office of the Secretary of Defense (OSD) states that, “‘Contingency contracting’ encompasses all contracting performed in a contingency environment (declared and non-declared), including military operations, stability operations, natural disasters, humanitarian, and other calamitous events.” iii