WASHINGTON, Nov. 1, 2007

Fuel Fraud Latest In Army Contracting Woes

CBS News Exposes Kickback Scheme, As Epidemic Of Wartime Military Contract Fraud Grows

  • 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.

  • A new report said the Army lacks the leadership and personnel, both military and civilian, to provide sufficient contracting support.

    A new report said the Army lacks the leadership and personnel, both military and civilian, to provide sufficient contracting support.  (CBS/AP)

  • Interactive Military 101

    Basic training to learn all about America's fighting force.

(CBS/AP)  "The Army's difficulty in adjusting to the singular problems of Kuwait, Iraq and Afghanistan is in large part due to the fact that there are no generals assigned to contracting responsibilities," according to the report.

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.
Add a Comment See all 112 Comments
by flipantflaw November 5, 2007 4:31 AM EST
'' ... the bloating earth, forests replaced with crops replaced with forests glued atop forests with swashy blooms ... ''

'' ... 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 ... ''

'' ... collections of sick beds of 165 each sick bed visitots each day and 5 at any one time at each sick bed used to share with hundreds and thousands and tens thousands others little impromptu museums of art and craft and song and dance and such and such for small tips, 198 dollars of tips each sick bed each day with 165 dollars shared among the 20 minute visitots and such ... ''

'' ... with infinite lines of resolution and infinitely fast refresh rates and lots of infinite exponents, maybe some folk could share some post cards for the little patient folk awaiting their next little neccesary moment with those that have no other uses except disciplinary reaction such that all the little patient people can preserve their earths and their eternitys too ... ''

'' ... which came first eternity or the earth ... ''
Reply to this comment
by usprophet November 3, 2007 1:38 AM EDT
Americans just don''t seem to care that our nation, along with The Constitution upon which it was founded, is being flushed-down the NWO toilet by our nations'' bought and paid for politicians and media. While the Oligarchs warn and insite fear in the sheeple about the prospect of terrorism, they at the same time leave our border wide open, and fund and conduct illegal wars overseas that do nothing but encite the terrorism which their Orwellian Laws like the Patriot Act and The Real ID Act pretend to protect us from. Wake up America! It''s not about protecting you from terrorism, or saving the planet from Global Warming, or any of that other fear-mongering garbage the sold-out, mainstream media feeds you 24/7. It''s about feeding the bankers and the military industrial complex, and facilitating the ruling elite''s ability to ratchet-down control over the American people, placing us into a total control grid where they can surveille, track and control everywhere we go and everything we do. It''s the groundwork for totalitarianism, my friends. It''s New World Order plan of Bush, Clinton, Giuliani, et.al., being executed quite beautifully. You''re a victim of mass mind control--a frog in a pot. In order to cook the frog, you don''t throw him into a pot of boiling water. If you do, he''ll resist and jump-out. What you do instead is, you turn the heat-up REAL SLOW, and by the time the water is boiling he won''t be able to jump out anymore, because it''s too late--he''s already doomed.
Reply to this comment
by usprophet November 3, 2007 1:11 AM EDT
I support Ron Paul and his non-interventionist foreign policy. Hitlery wants to continue our illegal police action in Iraq until at least 2013, and she does not rule out a preemptive (nuclear) first strike against Iran. Ron Paul voted against our (undeclared) war in Iraq, which was sold to us with lies. The area is more dangerous now than when we entered it. We destroyed a regime hated by our direct enemies--the jihadists, and created thousands of new recruits for them. This war has cost more than 3,400 American lives and almost a trillion dollars. We must have new leadership in the White House to ensure this never happens again. Both Jefferson and Washington warned us about entangling ourselves in the affairs of other nations. Today, we have 750 foreign bases and troops in 130 countries. We are spread so thin that we have too few troops defending America. And now, there are new calls for a draft of our young men and women. We can continue to fund and fight no-win police actions around the globe, or we can refocus on securing our borders against illegal immigrants and bring our troops home. No war should ever be fought without a Declaration of War voted upon by the Congress, as required by the Constitution. Under no circumstances should the U.S. again go to war as the result of a resolution that comes from an unelected, foreign body, such as the United Nations. Too often, we give foreign aid and intervene on behalf of governments that are despised. Then, we too become despised.
Reply to this comment
by rickstas November 2, 2007 9:14 PM EDT
Hey USAProphet:

As they say in China, Ron Paul can chew mau wang.
Reply to this comment
by usprophet November 2, 2007 9:02 PM EDT
You get the sense that our country is desperate for someone to show us the way. Not the old way. Not the same way, but a NEW WAY. Think about this for a minute. What if we pulled all of our troops out of South Korea? They''ve been there for 50+ years. What if we quit worrying about Iran, but instead, realized that its having a nuclear weapon will not mean the end of the world? What if we pulled all of our troops out of the Middle-East, and brought them all home? What if we realistically addressed the National Debt, and paid attention to REALLY DOING SOMETHING about stopping illegal immigration? These are the ideas of Republican Presidential candidate, Dr. Ron Paul. He''s a ten term Congressman and a physician who has delivered over 4,000 babies. He''s an intellectual who''s published four books, three of which are devoted entirely to sound economics. He was raised on a dairy farm in Pennsylvania as a pious Lutheran, but now he attends a Baptist church. Paul is given to mulling things over morally. Whenever he recollects the helicopter pilots he treated as an Air Force Flight Surgeon (Captain) during the Vietnam War, a war which he now says was "totally unnecessary and illegal," he laments, "They were gung-ho. I%u2019ve often thought about how many of those people never came back." Candidates with the high level of personal integrity and proven track record of adherance to The Constitution, Congressman Paul has always demonstrated only come around once in a lifetime, if we''re lucky.
Reply to this comment
by usprophet November 2, 2007 9:01 PM EDT
Ron Paul represents a different Republican Party from the one that Iraq, deficits and corruption have soured the country on. It''s ironic that other GOP candidates are scared to death of his message, BECAUSE his is more conservative than theirs. Being anti-war IS CONSERVATIVE. Another key difference between his message and the others is that he is a strong defender of The Constitution, which protects our civil liberties. The other Presidential candidates, who are mostly NWO Oligarchs, want to erase your liberties. They''ve tried hard to exlude Paul from the spotlight, along with the sold-out, mainstream media (CBS). In late June, despite a life of antitax agitation and pious churchgoing, he was excluded from a Republican forum sponsored by Iowa anti-tax and Christian groups. Ron Paul does not represent your Father''s school of political thought. He represents your Founding Fathers. He stands for a certain idea of the Constitution; the idea that much of the power asserted by modern presidents has been usurped from Congress, and that much of the power asserted by Congress has been usurped from the States. Though Dr. Paul acknowledges flaws in both The Constitution (it included slavery) and its Bill of Rights (it doesn%u2019t go far enough), he still thinks a comprehensive array of positions can be drawn therefrom: against gun control; for the sovereignty of States; and against foreign-policy adventures. His message draws on the noblest traditions of American decency and patriotism.
Reply to this comment
by usprophet November 2, 2007 9:00 PM EDT
Some people say, "a Republican? I''d never vote for a Republican." Let me remind you folks that Abraham Lincoln, who freed the slaves, and who won the war to preserve our Union, WAS himself a Republican. Would you have voted for Stephen Douglas, who was ardently pro slavery, against Lincoln simply because he was a Democrat? Of course you wouldn''t. It''s the person your voting for, and the ideas he or she represents, NOT the party. Ron Paul represents a different Republican Party from the one that Iraq, deficits and corruption have soured the country on. The Republican party has "lost its way," he said recently, during a GOP debate. Like the limited federal government principles espoused by Dwight D. Eisenhower, his school of Republicanism stands for a certain idea of the Constitution that much of the power asserted by modern Presidents has been usurped from Congress, and that much of the power asserted by Congress has been usurped from the States. Though Paul acknowledges flaws in both the Constitution (it included slavery) and the Bill of Rights (it doesn''t go far enough), he still thinks a comprehensive array of positions can be drawn therefrom: against gun control; for the sovereignty of States; and against foreign-policy adventures like the ones currently being played-out in the Mid-East. After ten terms of service as a U.S. Congressman, Ron Paul has demonstarted a consistent track record of adherance to The Constitution unmatched by anyone in either party. Go Ron Paul!
Reply to this comment
by usprophet November 2, 2007 8:59 PM EDT
Most intelligent people can see right through the mainstream media''s bias against Ron Paul. "What about the polls?", you ask. As someone who''s been in the business, I know you can make a poll result look anyway you want. All you have to do is call or not call on people in a certain demographic group to achieve your desired result. You can see the man has support. He''s won ALL of the viewer call-in polls in ALL of the GOP debates he''s been in. People everywhere are in the street, and on the Net, supporting him like no other. And his campaign chest is growing daily, and not from huge corporate donations like the other GOP and Democratic party candidates get from defense contractors and bankers, but from grass root supporters who give what little they can afford--$5, $10, whatever. This is a 21st Century political revolution, my friends, and the Oligarchs or on the defensive. Ignore what the media network giants like CBS tell you. They sold-out to the status quo decades ago. This man has some major grass roots support across this country. Millions of Americans believe he is our only hope to restore peace, prosperity and freedom in this country. Presidential candidates with the personal integrity and proven track record of adherance to The Constitution Congressman, Paul has always demonstrated only come around only once in a lifetime, if we''re lucky. The stakes are too high. The cause of freedom is too important. Get off your couch, put the remote down and support Ron Paul!
Reply to this comment
by usprophet November 2, 2007 8:58 PM EDT
Ron Paul can win the GOP nomination. If he does, I predict a landslide victory in November of 2008. Even the oddsmakers in Vegas aren''t willing to discount his chances. They''re currently giving him 6:1 odds to win against Hitlery if he gets the nomination. Romney, McCain and the globalist, sell-out Giuliani aren''t given anything better than a 25:1 chance of winning if they get the GOP nod. All it takes is for formerly apathetic individuals to get off the couch and nominate him in their local Republican primary or caucus process. Political parties are nothing more than tools. Those who read the manual and use the tools properly will win the nomination for their candidate. For the past 20 years, many good people have stayed at home and accepted whatever candidate they let others select for them. This year, those people are learning how to use their vote to bring about positive and long overdue political change in this country. To make a difference, you must participate in the Republican primary election or caucus process in your county, precinct or district. Nothing else matters. If we do this, we win. If not, we lose. The GOP has been suffering from declining participation for decades. Fewer than 10% of registered voters have ALL the power because they actually participate. Now the remaining 90% must surge to use their vote as a tool for bringing about positive change to our country. The time to act is now. The time for political revolution has come. The time for Ron Paul is NOW!
Reply to this comment
by usprophet November 2, 2007 8:57 PM EDT
What''s Ron''s message? Whatever you think Dr. Paul''s campaign is about, the main thing it has done thus far is to serve as a clearinghouse for voters like me who feel unrepresented by New World Order Fasciscts (mainstream Republicans) and their Socialist comrades in crime (mainstream Democrats). They''re actually one and the same. There is no real difference between the two parties. Most people, though, are too distracted, dumbed-down, or outright brainwashed by mainstream media, which endlessly regurgitates scientifically-crafted streams of information and entertainment aimed at imprisoning their minds and keeping their eyes closed to the realities of the world around them, to recognize this. Those currently in power, and those being groomed to take [major] political power, are the global elite, and we are their "Plebs." People on the right and those on the left have many differences, maybe irreconcilable ones. But they have a lot of common beliefs too, and their numbers and anger are of a considerable magnitude. No matter what happens in 2008, I personally believe Ron Paul will influence the national conversation about what the role of the federal government is, how much power should government have over our lives, how much liberty we should give up for security. These are important issues, and frankly, no one''s talking about them as seriously and sincerely as Ron Paul. What''s for sure is that his growing army of supporters like me will be a force to be reckoned with in 2008.
Reply to this comment
by usprophet November 2, 2007 8:56 PM EDT
"The means of defense against foreign danger historically have become the instruments of tyranny at home."
- James Madison

"Those that give give up essential liberties for temporary safety, deserve neither liberty nor safety."
- Benjamin Franklin

"America will never be destroyed from the outside. If we falter and lose our freedoms, it will be because we destroyed ourselves."
- Abraham Lincoln

"We have nothing to fear but fear itself, and those who would exploit our fear for power and their own personal, selfish, cynical gain."
- Franklin D. Roosevelt

"Peace is not the absence of conflict. It is the ability to handle conflict through peaceful means."
- Ronald Reagan

"Those who expect to reap the blessing of freedom must...undergo the fatigue of supporting it."
- 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
Reply to this comment
by pakaal November 2, 2007 8:21 PM EDT
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 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.
Reply to this comment
by pakaal November 2, 2007 8:18 PM EDT
If George Bush had a shred of fiscal responsibility, he''d be pursuing these cases of military fraud and taxpayer waste. Instead he vetoes fiscally sound pay-and-spend programs like SCHIP.

Sure, let''s ignore fiscal oversight and keep our children uninsured. Welcome to Year Seven of the Bush/Cheney Administration.
Reply to this comment
by finewoven November 2, 2007 7:46 PM EDT
Many of us knew this a couple months after the "war" began. Bush knew about it even before the "war" began, as it was his plan. Several times I, and many others have posted this information months ago on these threads, just now it makes the news.
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.
Reply to this comment
by finewoven November 2, 2007 7:36 PM EDT
Get off your couch, put the remote down, and support Ron Paul!
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.
Reply to this comment
by usprophet November 2, 2007 5:38 PM EDT
Most intelligent people can see right through the mainstream media''s bias against Ron Paul. "What about the polls?", you ask. As someone who''s been in the business, I know you can make a poll result look anyway you want. All you have to do is call or not call on people in a certain demographic group to achieve your desired result. You can see the man has support. He''s won the viewer phone-in polls in ALL of the GOP debates he''s been in. People everywhere are in the street, and on the Net, supporting him like no other. And his campaign chest is growing daily, and not from huge corporate donations like the other GOP and Democratic party candidates get, but from grass root supporters who give what little they can afford--$5, $10, whatever. This is a 21st Century political revolution, my friends, and the Oligarchs or on the defensive. Ignore what the media network giants like CBS tell you. They sold-out to the status quo decades ago. This man has some major grass roots support across this country. I believe he is our only hope to restore peace, prosperity and freedom in this country. Presidential candidates with the high-level of personal integrity and proven track record of adherance to The Constitution Congressman, Paul has always demonstrated only come around only once in a lifetime, if we''re lucky. The stakes are too high. The cause of freedom is too important. Get off your couch, put the remote down, and support Ron Paul!
Reply to this comment
by gkc99 November 2, 2007 5:35 PM EDT
Oh the Dems can, and do, steal. They are very like the Repugs, in general. However, the pattern of corruption and obstruction under the Bushit admin trumps anything Dems have come up with in the last 50 years. Richard Daley, Sr., was a Democrat and a corrupt thief, but he was small time compared to the massive theft perpetrated by the Neoconscum Fascists and their camp followers.
Reply to this comment
by jetranger7 November 2, 2007 4:54 PM EDT
IMPEACH-IMPEACH-IMPEACH-IMPEACH-IMPEACH-IMPEACH-IMPEACH IMMEDIATELY RIGHT NOW !!!!!
Reply to this comment
by toolmangler-2009 November 2, 2007 4:45 PM EDT
If this was a REAL WAR, heads would roll!

Posted by BareEmperor at 01:11 PM : Nov 02, 2007


Only if we had a REAL PRESIDENT!!!!!!!!!!!
Reply to this comment
by missingamerica November 2, 2007 4:39 PM EDT
Huh...KBR and this Administration must share the same P&O department.
Reply to this comment
See all 112 Comments

60 Minutes

The secrets of tennis legend Andre Agassi; the growing threat of cyber wars; and more.
Read More

Latest News
News in Pictures
Scroll Left Scroll Right
  • The Fall Of The Berlin Wall The Fall Of The Berlin Wall

    Looking Back at the Wall that Once Divided Germany On the 20th Anniversary of Its Collapse

  • Patricia Clarkson Patricia Clarkson

    Television and Film Actress, Yale School of Drama Graduate and Academy Award Nominee

  • Day in Pictures Day in Pictures

    A Glimpse at the Day's News as Seen Through a Camera Lens

  • Andre Agassi Andre Agassi

    Former Top-Seeded Tennis Star, Gossip Column Favorite and Philanthropist

  • Yankees Victory Parade Yankees Victory Parade

    The Yankees Celebrate Their 27th World Series Championship with a Ticker-Tape Parade Up Broadway

  • Orlando Office Shooting Orlando Office Shooting

    A Gunman Opens Fire at the Offices of an Engineering Firm Where He Once Worked

Connect with CBS News

Stay connected with the CBS News using your favorite social networks and online news applications: