APNewsBreak: Major Problems Found In Iraq Spending

There are questionable construction projects in Afghanistan, too. The commission visited the New Kabul Compound, a building intended to serve as headquarters for U.S. forces in Afghanistan. But members saw cracks in the structure, broken and leaking pipes, sinking sidewalks and other defects.

"The Army should not have accepted a building in such condition," the report says.

The commission cites concerns with a massive support contract known as "LOGCAP" that provides troops with essential services, including housing, meals, mail delivery and laundry.

Despite the huge size and importance of the contract, the main program office managing the work for both Afghanistan and Iraq has only 13 government employees. For administrative help, it must rely on a contractor.

KBR Inc., the primary LOGCAP contractor in Iraq, has been paid nearly $32 billion since 2001. The commission says billions of dollars of that amount ended up wasted due to poorly defined work orders, inadequate oversight and contractor inefficiencies.

In one example, defense auditors challenged KBR after it billed the government for $100 million in costs for private security even though the contract prohibited the use of for-hire guards.