In this case in the 28 NATO countries as a result of the Ukraine situation, $63,000 per head over seven years. Tom Temin: But getting back to that cost of keeping troops outside of where they’re normally housed. But we may see more information technology spending in particular now as a result of the nature of the shots. And as threats emerge, the spending evolves.
As I say it’s been chugging along, the total has been chugging along at about 5.1 billion per year.
Paul Murphy: I think it’s right now potential. Tom Temin: And have we seen that happen yet? The increase in cyber spending? Or is it just a potential at this point? is dedicated to supporting countries in the cyber threats as well as the security threats. And if we are in direct hostilities with these foreign countries, I think something to watch for that this playing out now is the amount of money we actually spend on IT, and particularly cybersecurity in the coming months, because Russia is known to be hacking and attacking countries with cyber threats throughout Eastern Europe. Paul Murphy: It could, it really depends on the nature of the conflict. When we had wars with countries or actual kinetic activity by our military, then the cost goes up exponentially, doesn’t it? Tom Temin: And now, of course, the president has promised, we’re not going to be fighting with Russia, we don’t have a war with Russia. And I think that, you know, we’re gonna see a general trend upward if the troop numbers increase. Paul Murphy: I think it’s largely operations and maintenance budgets. So what are the accounts that these come from? Tom Temin: We’re speaking with Paul Murphy, senior data analyst at Bloomberg Government, and this is appropriated money, I mean, there’s no such thing as an overseas contingency operation budget anymore. But a lot of the money goes for utilities, electric and local services that are paid for through foreign companies in the foreign countries. And Amentum, of course, is so locally based here in Germantown, Maryland. Paul Murphy: Largely, I mean, there’s a few American companies that stand out, for instance, the biggest American companies working in NATO countries right now include KBR, have a big presence in Poland and Khaki and Amentum in Germany.
Tom Temin: And to whom does these obligations go? Are they local, foreign based contractors? That’s a four out of every five dollars in just those four markets.
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About 23% for transportation and logistics, 10% for IT and 9% for professional services. We’ve got 38% of the money being spent for facilities and construction, not surprisingly. And it’s being spent mainly on four markets. It’s not spending by civilian agency, State and USAID, we have a presence here. It’s not military assistance, like we’re hearing about being sent to Ukraine. Paul Murphy: Well, the contract spending is obligation. Tom Temin: And what costs to have people, because their salaries and so forth are already taken care of. NATO forces that was announced last week, adds up to roughly 440 million more dollars, we might expect in contract support for troops deployed in NATO, European countries in the coming months and years. So if we take the 7,000 troop figure that President Biden proposed to augment the U.S. That’s the average overall for the seven years, $63,000. So what that means is the ratio of dollars to troops is about $63,000 per person, DoD and civilian per year. We also noticed over the same period that spending went up, it’s up around 5.4 billion in the 28 European NATO countries, and it’s up 18.5%, it’s chugging along at about $5.1 billion per year. So there’s been a general increment in the number of deployed personnel, including the DoD and civilian. And that was up about 3%, over the last seven years since Russia invaded Crimea back in 2014. So we pulled some data down from the Defense Manpower Data Center, we found that active duty troops and reserves and civilian DoD personnel totaled about 82,700 in fiscal 2021. So we thought we would do another similar analysis with NATO spending. Paul Murphy: Well, Tom, we noticed from studying contract spending in Afghanistan, that the total amount of spending corresponded fairly closely with the number of troops deployed, and as the number of troops went down, spending went way down. units are standing by for whatever purpose in some of the NATO countries, Poland, what does this cost? What are some of the needs they have that reflect themselves in spending? Tom Temin: So I guess 82nd Airborne and other U.S. Paul Murphy: Pleasure to be with you, Tom. Insight by Qlik: Federal News Network surveyed five agencies to detail the current and future impact of SaaS across their mission areas.