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. 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?

  2. 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….

  3. 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….

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