The growth of Private Military Firms (PMFs) is chronicled in a report from the Industrial College of the Armed Forces. The report notes the recent consolidation of ownership that resulted in the New York-based L-3 Communications buying MPRI and Veritas Capital purchasing Dyncorp.
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"The end of the Cold War and the United States’ (U.S.) military downsizing in the 1990s drastically altered the U.S. approach to warfare. The decrease in American forces by as much as one-third coupled with an increase in global military missions created the demand for private military services. Since the end of the Cold War U.S. military reliance on contract services in the form of consulting, security and other support has grown significantly, however, public scrutiny and distrust exist due to perceptions of inherent public-private shortcomings. Privatized Military Operations (PMO) can meet shortfalls in military capacity, but will only remain effective and
efficient if an agreed upon framework for planning, funding, execution, and oversight is implemented and enforced by the United States Government...
"...unlike the stereotypical small-unit mercenaries of the past, these modern PMFs are corporate bodies that offer a wide range of services, from tactical combat operations and strategic planning to logistical support and technical assistance."