And by the end of 2008, spending is likely to top $100bn, a review by the Congressional Budget Office found.

Supporters say their use is cost-effective but there have also been documented cases of overcharging.

Concern over security contractors also grew following the shooting deaths of 17 Iraqis in September 2007.

The US is relying on contractors in Iraq at a greater rate than in any other major conflict, the CBO said.

The most infamous contractor company in Iraq is the Black Water which abused and killed Iraqi civilians by shooting at Iraqi drivers from their jeeps and hummer vehicles.

The contract for Black Water has been renewed since the last scandalous reports regarding the mercenary actions taken by the company against Iraqi citizens.

According to CBO estimates, the US currently employs 190,000 contractors in Iraq and neighbouring countries, a ratio of one contractor per member of the US armed forces.

About 20% are American, 40% are citizens from the country where they are employed; and the rest are foreign workers.

The CBO report says its analysis shows:

• the US spent between $6bn and $19bn on security work in Iraq
• about 25,000 to 30,000 people work for security firms in Iraq - of these, 10,000 work directly for the US government and up to 25,000 for the Iraqi government
• the costs of a private security contract are similar to those of a US military unit performing a similar job, although during peacetime the private contract would not have to be renewed.

Last December, the US government said it had tightened procedures to give US military commanders a greater role in co-ordinating the movements of private security staff.

But the CBO notes that the legal status of contractor staff, particularly for those who are armed, remains uncertain.

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