Fool Us Once . . . : Defense Department Continues To Hand Out No Bid Contracts Worth Billions To Companies With Histories of Gross Overcharges

300px-The_Pentagon_January_2008We have yet another report of the mind boggling waste and mismanagement by the Defense Department in the wars of Iraq and Afghanistan. In the most recent investigation, the U.S. government continues to hand out no-bid contracts worth billions to companies with histories of ripping off the U.S. taxpayer. One foreign company, Supreme Foodservice should be remained Supreme Fraudservice after the company based in Switzerland overcharged the government by $757 million. Nevertheless, the company has been given contracts worth more than $5 billion to feed the troops in Afghanistan.

The story details how billions have disappears in Afghanistan.
Other companies sucking up this windfall include DynCorp International, KBR and Fluor Corporation. No bid contracts continue to insulate the companies from competition while they rack in billions.

The House Oversight and Government Reform Committee held a hearing on Supreme Foodservice. The hearing revealed that its initial 2005 contract was worth about $725 million to supply food and water to troops. After the Defense Logistics Agency accused the company of overbilling by $757 million, the money was recouped by reducing other payments. That passes for honesty and good management in our government. The company was then given billions in no bid contracts.

You can read the story yourself but you will note two things missing. First, the companies have continued to receive billions in no bid contracts and there is no mention of a single person being fired in the government for such mismanagement. This is precisely what I recently discussed in a column about the continued failure to hold government officials accountable for shocking acts of mismanagement or waste.

24 thoughts on “Fool Us Once . . . : Defense Department Continues To Hand Out No Bid Contracts Worth Billions To Companies With Histories of Gross Overcharges

  1. Couldn’t be that somebody is giving their buddies the orders ? It’s a friendly way of doing business after all ! Without someone like Elisabeth Warren looking at everything and having the ability to say no to any contract not awarded fairly, this will just persist. Of course the more money being sloshed around the more people are busy ‘working’ – except that the more also goes to the top 1%, who simply load it out to their hidden accounts overseas !
    Corruption everywhere, God help this country ! Is there never to be any relief from greed and theft by those of the upper levels of society ???
    Makes me want to s-c-r-e-a-m – don’t they understand THEY are moving the country down the slope of degeneration, step by step !!!!!

  2. Where can we as the business people sign up for some of these wonderful business contract from our ever so generous government….

  3. Billy May,

    If We The People stand up and speak out en masse it will change literally overnight. But apathy and conformity is a cancer on this society. We witnessed the power of the people recently when the people said no to military action in Syria and we see it now with the government’s attempt to infiltrate newsrooms. The people have the power, they just don’t use it as often as it needs to be used.

  4. Thirty years ago or more there was a 60 Minutes interview with a former Pentagon bean counter. He said that a third of the military budget could be canceled and there would be no change in the quality of this country’s defense. He further said that the Pentagon cannot account for its funds, they literally do not know where the money is (or went). Since then, this sort of story appears with some regularity. Is there any hope of leashing the monster?

  5. America has the reputation abroad as the dumbest, most arrogant & least free of all the western or developed nations. This is a part of that. You don’t riot, the government does whatever it likes & says whatever it likes, usually a huge distortion of the truth and very far from a real democracy. Now, with the NDA Act, you riot & there’s the excuse to remove everyones rights indefinitely, excepting they are still worried about our guns so better to do it now.

  6. Well, that is consistent with politicians who receive blatantly illegal campaign contributions and whose remedy is, “No problem, I’ll give the money back.” (or to charity.) No one seems to consider that they should be held to account for having committed a wrongful act.

  7. This DoD policy is one of the ways they redistribute the wealth of the people to their crony war business partners.

    Who then hire those DoDs after they retire so as to redistribute some of it to them.

    It is redistribute-down economics.

  8. This is “redistribution of wealth.” From the American taxpayers to the 1% so they can add another zero to their portfolio while others don’t have enough food.

  9. Love the Warren plug! Our new savior never stood up to financial wrongdoing by the Obama administration! She’s gone right along with obedience to the ruling class. Sure, she’ll make it all better–NOT!

    This govt./corporate partnership will not be brought down by a false savior from the Democratic party. It will only stop when people of the US understand what is going on, how we are being robbed by the amalgam of private/govt. powerful elites who take the money of the poor for the rich.

    It will happen when libertarians see that big corporations are a part of the problem, just as much as big govt. It will happen when Democrats stop shilling for their party gods and goddesses and start joining with other people who who want justice, not power for their particular group of robbers.

    (BTW, there was an interesting story on how politicians pay for their names to be listed in positive blog posts, facebook etc.)

  10. Anon,

    The answer to your question is easy: The Swiss paid more money in bribes and probably facilitated the transfer into their banks.

  11. Here we go again with the pin-hold vision. We talk about taxing WEALTH but in reality we only tax income, mostly middle class small business income.

  12. We could certainly tax capital gains and how about a transaction tax for every trade on Wall Street? (gasp-horrors) I know this would cause heads to explode but I’ll never forget Leona Helmsley’s comment about only the little people pay taxes. Well, maybe it’s about time the masters of the universe get a tax increase. They certainly want the “little people’s money” to bail them out of illegal financial transactions; however, when it comes time to ante up some of their own money then that becomes socialism. I’d love to test the theory that some banks are too big to fail.

  13. The more I read articles such as this I begin to wonder how free the American public is. Our money is increasingly stolen from us from taxes, fees, fines, and cost inflation. And what I mean by stolen is an increasing portion of these confiscations do not benefit the individual citizens but the elites of our country and for interest on the federal debut that Congress and the Presidency are completely incompetent and unwilling to control. We are thought of only in terms of getting votes to maintain their control and someone to get money from while at the same time even our right to privacy is taken away because of an ever increasing level of paranoia and contempt for us by these politicians.

    We are becomeing the subjects of politicians and government.

  14. As Churchill opined: Gentlemen, we have run out of money. Now we have to think. Until the bloated defense department is forced to start thinking, the waste and abuse will continue unabated.

    But as long as Congress, NSA, defense can gin up the fear cards at every opportunity, the money spigot will continue to flow billions in tax dollars.

    These no bid crony contracts have produced soldier deaths, including “The Department of Defense paid former Halliburton subsidiary KBR more than $80 million in bonuses for contracts to install electrical wiring in Iraq. The award payments were for the very work that resulted in the electrocution deaths of US soldiers”

    These defense corporations have killer profits….literally.

  15. Jonathan, I have uncovered a violation of the Anti Deficiency Act this was and still may be going on at the Test site. EG&G owned REECO the prime contractor EGG told Reeco to save money where ever it could, they got 70% of the loaded labor diverted to the area and at the end of the fiscal year any left over money’s were sent over the hill EG&G paid off their managers and paid managers from DOE to look the other way while the job was done but not to the specs the government was paying for. Millions of dollars were diverted to support a black project. I told The GAO about this and they said they turned the investigation over to the DOE. With EGGs contacts with the CIA all of this took place. My wife worked in budget and finance on labor money and was told that the NTS labor fund was so large that they only needed 30% to pay the workers. Also Special Projects workers are not covered under EEOICPA because we had a DOD contract and EEOICPA is for DOE workers only. Is this a violation of the 14th amendment?

  16. We, as a “civilization,” are going down, and nothing can change that. .. nothing. You have heard of the managers stealing from the food banks, etc., right? I give us 100 years, and that’s very optimistic! No honor, anymore….

  17. Being a witness of massive overcharging. Reporting that to the DOJ/DOD it amazes me that they need almost 2 years to set up a witness hearing with me and my collegues… 2B usd taxpayers money stolen… and all vast asleep….

Comments are closed.