we have to bid every contract out, yet you mentioned kbr contract for certain activities. could that contract have been bid out? is there a process the department of defense has to go through if they don't get contract at, there is a jna that has to be issued. why are they able to still have these contracts sole sourced >> mr. flecha is an excellent question. it has been some years the department of defense tried to have a leader contract in which there would be -- later version which there would be three competitors, and they i think the talk about that goes back at least two years. they are now slowly phasing and the successor arrangement that would have competition among the companies but it is still not inactivated in iraq. it is each task order under the contract still has only one vendor, kbr, and there has been some concern that the phasing in of a competitive of arrangement is going to slow. >> i know that your jurisdiction covers just wartime and theater, but it seems the problem goes beyond. as i mentioned on and trying for months to get access to some of the j i

. >> that may just make a comment when we talk about logcap-3 that was given to kbr before we went into iraq. no one anticipated it that we would be sending an incredible, over $30 billion to one contractor. when we went to logcap-4 which three contractors have and they would build internally among the three none of them getting more than i believe $5 billion a year. so we are talking over ten years 150 billion potentially, so we have introduced, the government has introduced a form of competition. but when we went into iraq, there was one person and one company that had in a sense won the contract. in terms of the whole number of recommendations that had been made and 500 ports and so long, our task is to categorize every one of them to be able to come back and tell you which ones have been implemented, which ones haven't, why we think they've been implemented, why they haven't and our recommendations what could and should be done. so the value, when you see us looking at those past reports it is sent to rework them it is just to know what is done and make sure you know what's been don

. >> dining hall operation for the third iteration of this contract logcap free was awarded to kbr as the sole vendor. the logcap contract awarded in 2008 requires competition, competition among three vendors, kbr and dyncorp international but the president's logcap three still stores in terms of contract. dcaa director april stephenson stated that the commission's may 2009 hearing, the time in i don't think we are aware of another contractor that it's had a significant number of suspensions or referrals for its recent response to that dca testimony this logcap three contractor kmiec kbr implied most referrals for possible fraud have been resolved by contacting officers. however dca has devised us that as of our may 4th hearing date, >> the resolution of suspected irregular conduct referrals would be performed by department of defense criminal investigative service or by the department of justice, not by contracting officers. both the iraq drawdown and the afghanistan build up raise serious questions about logistics' contract issues. for example, the commission has learned that americ

the prime contractor might be kbr but the dining facilities being run or the other work being done is being done by a third country company like the first trading company and the audits show those subcontractors may get away with overcharging because it isn't that much in kbr's interest or have the business systems to create competition under it. the overcharges from the subcontractor then get passed up with a factor for award fees and overhead until it comes to the treasury. we are facing -- the commission is trying to figure out the legal challenge and it is a new one. you don't find this as a problem in the domestic united states but it is a big one in theater where we are and we are looking what can be done to increase the ability to say what it such a third country companies. >> could i just emphasize, so we have the government that's supposed to oversee the contractors, and we have less than half of we need. they aren't specialists. they have to be taught and then they are asked to leave sooner than the contractor who is there and then we have the dca point out that most of the