Defense Oversight
The Inspector General's Office at the Department of Defense has issued its latest twice-yearly overview of its work.
Sobering stuff.
Billions spent with little oversight. Poor documentation. No meaningful changes in sight.
We at Government Inc. cringe and warn gentle-minded readers to think twice about reading on.
Here are some excerpts, in no particular order:
"The Army and Marine Corps issued contracts and Federal Supply Schedule orders valued at more than $5.2 billion for body armor components. The Federal Acquisition Regulation requires contracting organizations to maintain adequate contract documentation to provide a complete acquisition history. Specific information concerning testing and approval of first articles was not included in 13 of 28 Army contracts and orders reviewed, and contracting files were not maintained in 11 of 28 Army contracts to show why procurement decisions were made."
"From March 2004 through February 2006, the quality of water provided by contractors, through treatment or distribution at three of the sites DoD IG auditors visited, was not maintained in accordance with field water sanitary standards as specified in the Department of Army guidance. Although required, KBR did not maintain the quality of the water it distributed to point-of-use storage containers at Camp Ar Ramadi, Camp Q-West, and Camp Victory. Additionally, at Camp Q-West, KBR improperly provided chlorinated wastewater from its Reverse Osmosis Water Purification Unit to personal hygiene facilities."
Why, why, why, you ask? Here's one answer from the report:
"The DoD acquisition and contracting community continues to face the stress of managing the increasing Defense budget with a smaller and less capable workforce. The increased
need for contracting in an expeditionary environment with an emphasis on urgency only adds to the stress and strain on the workforce. Spending for goods and services in Fiscal year 2007 exceeded $315 billion. This level of spending is more than double the level of spending from FY
2001."
Here's a simple illustration of the trend, as derived from the report for Government Inc. by my colleague, graphics editor Michael Keegan:

The good news:
"The Office of Inspector General Department of Defense is heavily engaged in combating fraud, waste and abuse. In FY 2007, DoD IG audits achieved $697 million in savings and identified $1.5 billion in funds that could be put to better use. Investigative activities identified 413 suspects who were indicted. Additionally, 307 suspects were convicted of crimes. All in all, $926 million was returned to the U.S. Government in investigative fines, restitution, and recoveries."
By Robert O'Harrow |
June 10, 2008; 2:25 PM ET
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Posted by: Barb Weaver | June 11, 2008 10:19 AM
As long as "No New Taxes" and "No Increased Taxes" are parties platforms, defense contract oversight personnel numbers will continue to shrink and the workforce skill levels decline. The Federal Government workforce is aging. The budget keeps shrinking. No funds for adequate training, much less for travel to get to the contractor locations to verify first article testing. MIL Standards were rescinded years ago-no one complained. Due diligence is not perfromed because the American people don't want the additional expense. We should expect horror stories in acquisition in the same way we should expect pot holes and collapsing bridges. If you don't pony up the bucks, oversight, like maintenance, doesn't get done as it should.
Posted by: Acquisition Laborer | June 11, 2008 10:31 AM
Unfortunately there's been negligent defense contractors throughout our nation's history. I have witnessed firsthand a contractor in Alabama who mischarged work for the DoD for many years. The company was reported to the authorities and nothing has ever been done. I guess a few million $ mismanaged is considered small. Businesses who practice fraud tarnish free enterprise and betray our troops.
Posted by: whistler | June 11, 2008 12:38 PM
Not making excuses at Ar Ramadi, but the Army produced the water and KBR contracted trucks to deliver it to the Army maintained water points. I still am not sure how KBR was supposed to add magic to Army produced water and add magic to the Army containers. Their job was to transport and ensure the transporters were clean.
It would be as if you contracted someone to simply cut your grass and you wonder why they are not tending your tomato patch.
Posted by: Chuck | June 12, 2008 8:05 AM
There is nothing surprising about the fraud thatr is occuring in DOD procurement. Members of congress are traveling with potential military contractors to military installiations. Retired flag grade military officers are strong arming civil service employeees regardinh=g military contracts.
Th attorney charged with whistleblower issues in DOD was destroying information filed with his office and then telling people who filed the claimsd not to worry aout what they were complainming about.
Anyone within the military industrial complex that complained at all was dismissed. It all began with Dick Cheney and Bunny Green when the Iraq war started and has gone non-stop for six years.
Robert Wexlar and Dennis Kensich have filed impeachment papers against George W. Bush and Dick Cheney. Well I hate to tell them but it is way to late. It is nothing but politcal garndstanding, and you do have a totally bought and paidf for US Congress mosat of whom would go to jail with Cheney and Bush if there was an honest US Attorney General. They would all go to prison together. Government IG offices ? They exist in name only. They do nothing of substance.
Posted by: Ralph Dreifus | June 16, 2008 10:48 AM
It is getting to be U.S. Government Contractors=Fraud and really sloppy work. But then again link KBR with Halliburton with VP Cheney (who is the CEO in Absentia) then you can get the full picture.
Posted by: Anonymous | June 18, 2008 9:24 AM
I'm sick to death of all this "support our troops" nonsense, when in reality it's "support the oil industry!" Those kids, "our troops" wouldn't have joined the military in a healthy economy.
Every time the war hawks scream they need more funding, up comes the "benefits" we promised our kids for risking their lives in an illegal war. Why isn't there enough money for "educating" anyone who wants it, whether or not they served in the military?
Our nation is trillions of dollars in debt, our social safety net has been torn to shreds, our unborn children are saddled with these debts--and to what end?
So the military industrial complex can play war games with human toys" instead of rubber soldiers? If they cared about the troops--why are we in Iraq, who never did anything to harm us?
We did not bring Iraqi's "freedom" as bush claims, unless freedom of having fewer relatives is the making of his ideal democracy. If living without clean water, reliable power, and a destroyed infrastructure is an example of freedom, and has to be forced fed to them, in exchange for their oil--why are our youth sacrificing their limbs and lives?
We no longer need OIL--it's an out-dated commodity--with unregulated money addiction and greed driving the cost of commodity inflation. I know, you probably think I'm crazy making such statements.
Google alternative fueled cars on YouTube. The FCX Clarity, a Honda sedan, is in production and running strictly on water vapor converted to electricity--no gas whatsoever. Those cars are being made in Irvine, CA.
Then there is the Air car being manufactured in India, designed by a Frenchman who is eager to share the technology with every country. This car is fueled by air compression. Most of us have an air compressor in the garage. Most gas stations have air compressors to pump our tires.
These two mentioned above are comparable to what we have on the road today, when it comes to speed and distance. Although the first requires an infrastructure to be built to accommodate the luxury. While the second car is made strictly for economy.
Why then, is Congress debating the merits of drilling or killing for OIL? Why are they so invested in maintaining the Oil Industry indecent profit structure?
They talk about green jobs, green living, etc., but they say nothing about the advances that took place without their mismanagement of taxpayers money.
Posted by: gabbyn | June 20, 2008 2:02 PM
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This is PATHETIC...Any and all affiliated with the Department of The Army,should be ashamed...These troops continue to be sent to the Middle East to possibly make the ultimate sacrifice and they aren't even getting clean drinking water...Dear God this is the United States of America's government...It would seem too many at the top have lost sight of what priorities should be...OUR troops should be the priority...Physically and emotionally...Too much for too long has been asked of them...I fear for the long term effects this will have on the troops, familes and our Nation as a whole...5 years and still no end in site...Soldiers or not, they are human beings first...ANY person only has so much capacity for stress...They continue to fulfill their obligations with honor...Where is the honor and consideration for all of them? GOD BLESS EACH AND EVERYONE OF THEM. Barb Weaver