Friday, August 04, 2006

Here's some of the $5 billion

A few weeks ago I wrote about Lawrence Korb's contentions that the Defense Department wastes $5 billion annually. Well, the latest GAO reports show some places where that money is being wasted:
  • DOD or any of its agencies cannot pass an independent audit. (Read that again.)
  • Intellectual property rights are not obtained for many projects. This is especially harmful and costly for multi-year projects, some of which can last for decades. Not having the IP rights means it becomes very difficult and costly to make changes.
  • Work began on the F-22A, the Air Force's next generation fighter, in 1986. Since then, "the Air Force has added new requirements, more than doubled the length of the acquisition schedule, cut purchase quantities by more than 75% and increased total acquisition unit costs by more than 100%".
  • The GAO has been pointing out problems in DOD's supply chain management since 1990. DOD still does not have an effective plan for managing the supply chain. As a result, supplying our troops properly is at risk, plus our money is not being spent wisely.
  • GAO employees were able to buy body armor, guided missile mounts, radar test sets, antennae and other sensitive military equipment at liquidation sales. Note that the GAO employees posed as private citizens. Some of these items are currently being bought new by the military; GAO was able to buy them at a fraction of the cost.
  • DOD has received $430 billion for the global war on terror. They have trouble recording costs and matching costs to appropriations. As a result, planning for future needs is a real problem.

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