Since September 11, 2001, military spending by the United States has grown rapidly, as has the portion of that spending that pays for military contractors. This report disproves the theory, put forth by advocates for military contracting, that the commercialization of government services decreases costs and increases quality of these goods and services, thereby benefiting the public purse. Instead, the paper shows that military contracting is at least as expensive, and often more expensive, than if the military were to perform the same services in-house. This is because contractors lack competitive pressures to reduce the prices they charge to the government.
Program: International Peace and Security
