Fuel Fraud Latest In Army Contracting Woes
CBS News Exposes Kickback Scheme, As Epidemic Of Wartime Military Contract Fraud Grows
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Play CBS Video Video Army Contract Fraud Crisis Bribes and kickbacks are ripping off the U.S. military. Over 80 criminal fraud cases involving contractors in Afghanistan and Iraq are under investigation. David Martin reports.
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A new report said the Army lacks the leadership and personnel, both military and civilian, to provide sufficient contracting support. (CBS/AP)
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By comparison, the Air Force takes contracting much more seriously and officers in the field can aspire to positions of greater responsibility. It is not a coincidence that most of the ongoing investigations are targeting Army personnel, the panel said.
Since 2001, provisional offices have sprung up in the Middle East and Afghanistan to buy items such as bottled water, laundry services, barracks, food, transportation, and warehouse services.
But in certain places, such as Camp Arifjan in Kuwait, there were too few qualified people, too little oversight, high staff turnover, and poor record-keeping. In the midst of those shortcomings came a huge flow of dollars for the war, creating an environment ripe for misconduct and inefficiency.
A separate Army task force was assigned to examine a random sampling of the 6,000 contracts worth nearly $2.8 billion issued since 2003 by the Kuwait office in a search for rigged awards and sloppy work. That review is to be completed by the end of the year.
The Army Criminal Investigation Command already has 83 ongoing criminal investigations related to wartime contract fraud. Nearly two dozen military and civilian Army personnel have been charged or indicted and more than $15 million in confirmed bribes has changed hands, according to the command.
To federal acquisition experts, the Army's contracting problems come as no surprise. Following the end of the Cold War, defense budgets were cut sharply and so was the contracting work force.
Members of Congress derisively referred to acquisition personnel as "shoppers and buyers" and questioned why so many were necessary, according to Steve Boshears, chief knowledge officer at the National Contract Management Association in Ashburn, Va.
"Contract management was looked at as an administrative function - too much overhead and too hard to see the value it added," said Boshears, a retired colonel and a former Army contracting officer.
Over nearly a decade, few new contracting personnel were hired, which meant there would be a shortage of replacements when older workers retired. At the same time, contracting was becoming increasingly complex as the government outsourced more to the private sector using often subjective criteria.
Gone were the days where the lowest bid got the contract. Now, those making the decisions are expected to select the offer with the "best value" to the government and to perform detailed analyses of a company's past performance.
After 2001, when the amount of spending for the wars exploded and annual defense budgets exceeded $600 billion, the demands on this undersized, aging work force accelerated and led to the much-publicized breakdowns.
"This didn't happen overnight," Boshears said.
© MMVII, CBS Interactive Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.
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See all 112 Comments'' ... i went to the store, sort of a hotel of small homes, folk visiting sick beds to stand on their heads or cull food and medicine and basket weaving such and such out of the fertilizables and the irrigateables ... ''
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As they say in China, Ron Paul can chew mau wang.
- James Madison
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- Ronald Reagan
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- Thomas Paine
"Liberty, when it takes root, is a plant of rapid growth."
- George Washington
"Commerce with all nations. Alliances with none."
- Thomas Jefferson
"Wars are poor chisels for carving-out peaceful tomorrows."
- Martin Luther King Jr.
"Ron Paul does''nt represent your Father''s school of political thought. He represents your Founding Fathers."
- Me
Posted by finewoven at 04:46 PM : Nov 02, 2007
Yes, it''s outrageous what some people will accuse our fine administration of doing. So what if the facts back up the contentions? As we know, Rove-ian politics demand a second set of facts that fit the warped reality they live in.
Sure, let''s ignore fiscal oversight and keep our children uninsured. Welcome to Year Seven of the Bush/Cheney Administration.
Posted by brianbwb at 02:25 AM : Nov 02, 2007
You mean the war hasn''t been about removing the tyrant Saddam Hussein, and helping the Iraq people create a democracy and build their economy? It seems like you''re saying the war was created to profit GOP warmongers with high-dollar contracts that do nothing to stop the threat of terrorism in the middle-east. This is too much.
Posted by USProphet at 02:38 PM : Nov 02, 2007
I still would like to know some of the legislation he has authored. Can you provide some details.
Posted by BareEmperor at 01:11 PM : Nov 02, 2007
Only if we had a REAL PRESIDENT!!!!!!!!!!!
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