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GAO-09-791R 1 (2009-07-10)

handle is hein.gao/gaobaanoo0001 and id is 1 raw text is: 


   I
   GA 0
LV.W3L11 1= Accountability * Integrity * Reliability
United States Government Accountability Office
Washington, DC 20548


   July 10, 2009

   Congressional Committees

   Subject: Overseas Contingency Operations: Reported Obligations for the
   Department of Defense

   Since 2001, Congress has provided the Department of Defense (DOD) with $888 billion in
   supplemental and annual appropriations, as of June 2009, primarily for Overseas
   Contingency Operations (OCO).' DOD's reported annual obligations2 for OCO have shown a
   steady increase from about $0.2 billion in fiscal year 2001 to about $162.4 billion in fiscal
   year 2008. For fiscal year 2009 OCO, Congress provided DOD with about $65.9 billion in the
   fiscal year 2009 DOD Appropriations Act and about $80.0 billion in a supplemental
   appropriation enacted in June 2009. A total of $59.6 billion has been obligated through the
   second quarter of fiscal year 2009 through March 2009. The United States' commitments to
   OCO will likely involve the continued investment of significant resources, requiring decision
   makers to consider difficult trade-offs as the nation faces an increasing long-range fiscal
   challenge. The magnitude of future costs will depend on several direct and indirect cost
   variables and, in some cases, decisions that have not yet been made. DOD's future costs will
   likely be affected by the pace and duration of operations, the types of facilities needed to
   support troops overseas, redeployment plans, and the amount of equipment to be repaired
   or replaced.

   DOD compiles and reports monthly and cumulative incremental obligations incurred to
   support OCO in a monthly report commonly called the Contingency Operations Status of
   Funds Report.4 DOD leadership uses this report, along with other information, to advise
   Congress on the costs of the war and to formulate future OCO budget requests. DOD reports




   'After the terrorist attacks of September 11, 2001, the President announced a Global War on Terrorism,
   requiring the collective instruments of the entire federal government to counter the threat of terrorism.
   Overseas contingency operations include operations in Iraq and Afghanistan. These operations involve a wide
   variety of activities, such as combating insurgents, training the military forces of other nations, and conducting
   small-scale reconstruction and humanitarian relief projects. Starting with the fiscal year 2009 supplemental
   request in April 2009, the Administration now refers to funds for the wars in Iraq and Afghanistan as Overseas
   Contingency Operations funds instead of Global War on Terrorism funds.
   2According to Department of Defense, Financial Management Regulation, 7000.14-R, vol. 1, Definitions
   (Dec. 2001), xvii, obligations are incurred through actions such as orders placed, contracts awarded, services
   received, or similar transactions made by federal agencies during a given period that will require payments
   during the same or a future period.
   3For more information see GAO, Securing, Stabilizing, and Rebuilding Iraq: Key Issues for Congressional
   Oversight, GAO-07-308SP (Washington, D.C.: Jan. 9, 2007), and Global War on Terrorism: Observations on
   Funding, Costs, and Future Commitments, GAO-06-885T (Washington, D.C.: July 18, 2006).
   4 This report replaces the Supplemental and Cost of War Execution Report.


GAO-09-791R Overseas Contingency Operations

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