Outsourcing National Defense

Every year, the US Department of Defense allocates more than $400 billion to for-profit firms. Which raises the question: Where does the money go? Thomas Bruneau takes a deep dive into the murky waters of national defense outsourcing to answer that question. Moving beyond the issue of private military contractors, Bruneau investigates the scope, legality, and implications of the private sector's vast involvement in securing the nation.

Faced with a decreasing supply of national troops, dwindling defense budgets, and the ever-rising demand for boots on the ground in global conflicts and humanitarian emergencies, decision makers are left with little choice but to legalize and legitimize the use of private military contractors (PMCs). Outsourcing Security examines the impact that bureaucratic controls and the increasing permissiveness of security environments have had on the U.S. military’s growing use of PMCs during the late twentieth and early twenty-first centuries. Bruce E. Stanley examines the relationship between the rise of the private security industry and five potential explanatory variables tied to supply-and-demand theory in six historical cases, including Operation Desert Storm in 1991, the U.S. intervention in Bosnia in 1995, and Operation Iraqi Freedom in 2003. Outsourcing Security is the only work that moves beyond a descriptive account of the rise of PMCs to lay out a precise theory explaining the phenomenon and providing a framework for those considering PMCs in future global interaction.

The privatization of defence assets and the outsourcing of military services from the armed forces to the private sector is an increasing trend. This book approaches the issue of military privatization by linking it to the transformation of the defence industries since the early 1990s, and shows the extent to which many military functions and activities, ranging from military research to military consulting/training to operational support services, have already been outsourced in the US and in Europe. This detailed study provides new and updated information on the ongoing privatization of the defence sector and offers an original theoretical explanation as to why the most modern armed forces throughout the world have come increasingly to rely on private companies for nearly everything they do. Contributing to a better understanding of military privatization and its close connection to technological change, the book explains the complexity of the whole phenomenon and discusses its implications for national and international security.

Among other topics, the Commission on Roles and Missions of the Armed Forces considered whether the Department of Defense (DoD) should contract out--outsource--support services that DoD now produces in-house and, if so, (1) which services DoD should outsource and (2) what DoD can do to make outsourcing more cost-effective. This report reviews a set of issues relevant to these questions. The report first reviews barriers and objections to outsourcing that have been raised by earlier studies and government commissions that have addressed outsourcing. It then reviews insights from commercial-sector experience with outsourcing that DoD could use to guide its own actions on outsourcing. Finally, it offers suggestions about how to structure an implementation plan for large-scale outsourcing of support services. In particular, it identifies the attributes of support activities that DoD should consider outsourcing first and how DoD could facilitate an outsourcing program.

Private actors are increasingly taking on roles traditionally arrogated to the state. Both in the industrialized North and the developing South, functions essential to external and internal security and to the satisfaction of basic human needs are routinely contracted out to non-state agents. In the area of privatization of security functions, attention by academics and policy makers tends to focus on the activities of private military and security companies, especially in the context of armed conflicts, and their impact on human rights and post-conflict stability and reconstruction. The first edited volume emerging from New York University School of Law's Institute for International Justice project on private military and security companies, From Mercenaries to Market: The Rise and Regulation of Private Military Companies broadened this debate to situate the private military phenomenon in the context of moves towards the regulation of activities through market and non-market mechanisms. Where that first volume looked at the emerging market for use of force, this second volume looks at the transformations in the nature of state authority. Drawing on insights from work on privatization, regulation, and accountability in the emerging field of global administrative law, the book examines private military and security companies through the wider lens of private actors performing public functions. In the past two decades, the responsibilities delegated to such actors - especially but not only in the United States - have grown exponentially. The central question of this volume is whether there should be any limits on government capacity to outsource traditionally "public" functions. Can and should a government put out to private tender the fulfilment of military, intelligence, and prison services? Can and should it transfer control of utilities essential to life, such as the supply of water? This discussion incorporates numerous perspectives on regulatory and governance issues in the private provision of public functions, but focuses primarily on private actors offering services that impact the fundamental rights of the affected population.