This report examines current private security contractor (PSC) trends in Afghanistan and Iraq, steps the Department of Defense (DOD) has taken to improve oversight and management, and the impact that using private security personnel can have on military operations. It also reviews steps Congress has taken to exercise oversight over the use of PSCs and includes options for Congress.

The United States and its allies are helping Afghanistan emerging from more than 22 years of warfare, although substantial risk to Afghan stability remains. Before the U.S. military campaign against the orthodox Islamist Taliban movement began on October 7, 2001, Afghanistan had been mired in conflict since the Soviet invasion of Afghanistan in 1979. The defeat of the Taliban has enabled the United States and its coalition partners to send forces throughout Afghanistan to search for Taliban and Al Qaeda fighters and leaders that remain at large, including Osama bin Laden. As the war against remaining Al Qaeda and Taliban elements winds down, the United States is shifting its military focus toward stabilizing the interim government, including training a new Afghan national army, and supporting the international security force (ISAF) that is helping the new government provide security.