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

We 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.