PENTAGON "STAR CREEP" AND THE "REVOLVING DOOR"

GOVERNMENT SPENDING WASTE

How Does the US Stop the Dramatic Cost to the Tax Payer From Pentagon
"Star Creep"
And
"The Revolving Door”
Between Industry and Government Executives?

STAR CREEP

POGO, the venerable, apolitical non-profit has coined, "STAR CREEP" the monumental increases in general officers in the Military:

" Between May and September, more than 10,000 enlisted personnel were cut by the DoD, possibly in preparation for the end of military operations in Iraq, while more than 2,500 officers were added.

Consequently, for the first time in the more than 200 years that the U.S. has had a standing military, there are fewer than five enlisted personnel for every officer. In other words, today’s military is the most top-heavy force in U.S. history.

But the cost of Star Creep only begins with direct compensation. Other costs that surround generals and admirals—such as staff, contractors, and travel—increase with higher ranks. For example, Bloomberg recently reported that taxpayers in Huntsville, Alabama, footed a $3.8-million bill to build luxurious homes for generals in a successful effort to keep Pentagon pork flowing into the area. One such home, built for a major general, was a sprawling 4,200-square-foot mansion that included granite counter tops, hardwood floors, and stainless steel appliances."

Former Secretary of Defense Gates remarks on this issue per POGO:

"In his August 2010 speech on Efficiency Initiatives, Gates referred to these perks as “the overhead and accoutrements that go with” senior positions, be they military or civilian, within DoD. In an interview with Newsweek, Gates bemoaned these accoutrements and entourages that surround generals and admirals, which he believes are indicative of a military leadership that is “suffering from an inflated sense of entitlement and a distorted sense of priorities"

http://pogoblog.typepad.com/pogo/2011/11/todays-military-the-most-top-heavy-force-in-us-history.html

THE REVOLVING DOOR

The Federal Acquisition Regulation, Section 3.1 sets out definitions of standards of conduct and conflict of interest. It details restrictions on dialogue regarding employment with officials prior their leaving their government jobs and further restricts where an official may work in industry and in what capacities relative to prior government service.

Penalties for violating these rules range from criminal prosecution for government and industry personnel found guilty of violations, to debarment of companies and individuals from government contracting.

POGO has announced: "Two Former Watchdogs Ring in the New Year on the Other Side of the Revolving Door":

http://pogoblog.typepad.com/pogo/2012/01/two-former-watchdogs-ring-in-the-new-year-on-the-other-side-of-the-revolving-door.html

“The first revolver is Michael Thibault, former co-chairman and commissioner of the Commission on Wartime Contracting in Iraq and Afghanistan (CWC) who recently joined DynCorp, one of the three primary LOGCAP IV contractors, and currently the 32nd largest contractor in POGO’s Federal Contractor Misconduct Database. It has nine instances of misconduct since the early 2000s and $19.6 million in penalties. The second revolver is Gordon Heddell, who resigned as the Pentagon’s Inspector General on Christmas Eve. The text of Heddell’s farewell email message is posted below. POGO has learned that Heddell also landed a job with a top-tier federal contractor, the global consulting firm Booz Allen Hamilton. Booz Allen, the 29th largest contractor in POGO’s database, has two misconduct instances and $3.7 million in penalties. Although it has a relatively blemish-free history, it should be noted that Booz Allen derives a substantial amount of business from contracts with the Defense Department. Booz Allen confirmed with POGO that Heddell was hired last month as a Senior Executive Advisor."

Are these companies and individuals exempt from public law?

Minnesotan Gets it Right in Quoting Eisenhower

LETTER OF THE DAY - MINNEAPOLIS STAR TRIBUNE - 4 JUNE 201O

THANK YOU RICHARD A. POMMIER

Letter of the day: Ike was right in warning about a military-industrial complex (See Banner Link Above)

Republican President Dwight Eisenhower warned us decades ago to beware the military-industrial complex, yet submarine after submarine, plane after plane, and war after war have left our country financially bankrupt and his warnings unheeded. Let's continue to blame civic welfare for our woes while ignoring corporate warfare and see where it gets us. We spend as much on defense as the rest of the world combined, yet the irony of it all is that this spending has somehow not resulted in a single widget, gidget or gadget capable of plugging a hole in 5,000 feet of water. Thanks, Ike, for knowing we could do better.

RICHARD A. POMMIER, LONG PRAIRIE, MINN.

NOW AVAILABLE FREE FOR 2010 – UPDATED, 3RD EDITION – SMALL BUSINESS FEDERAL GOVERNMENT CONTRACTING GUIDEBOOK

Use the Box Net Feature at the below web site for your free Edition of “Small Business Federal Government Contracting” at:

http://www.smalltofeds.com/

It covers 7 major areas of the business with 38 articles and two company models on small business systems and pricing.

YET ANOTHER GOVERNMENT/INDUSTRIAL COMPLEX

Whether or not the average US Citizen knows it, the United States is creating the second-largest government/industrial complex in our nation's history. It is envisioned as a cocktail of bailouts to the financial industry, the automotive industry and others who show up with their hands out and their lobbyists in tow. It is also comprised of state governors who are poised to invent yet another form of pork with federal representatives and senators at their sides while raising local taxes for the citizen back home. This speculative panacea cannot survive.

HISTORY

The longest running and largest consortium of this type is the US Military Industrial Complex (MIC), funded each year at an amount many times the Wall Street and automotive bailouts combined. It is the elephant in the room in the burgeoning financial crisis, carrying the weight of wars, weapons systems and a pentagon/corporate financial relationship based on cost plus and time and material contracts since World War II:

http://rosecoveredglasses.blogspot.com/2008/09/two-collapsing-towers-wall-street-and.html


IMPORTS AND EXPORTS

We are importing goods and services and borrowing money from the Chinese, the European Union, Japan, Korea, India and other developing countries at a rate unmatched in our history. Loan proceeds are being used to fight wars and bail out our bankers, carmakers and state governors.

Our largest export today is our public debt and our credit rating is slipping.

THE ILLUSION

What shall the prospective, second-largest government/industrial complex be called, “The Department of Wishful Thinking”? It is being financed with money borrowed from entities future generations will owe as the US kicks the financing can down the road like it has for the last 60 years.

No doubt Washington will attempt to regulate the outlay, put in auditors and control mechanisms like the Federal Acquisition Regulation and Cost Accounting Standards that evolved over the years on a reactive basis dealing with the white elephant scandals in the Military Industrial Complex. But somehow those controls have never been able to stop the mammoth waste, fraud and abuse that occur in the MIC.

Big money attracts greedy people, not only in the MIC but also on Wall Street and in the corporate boardroom. It also buys influence and crooks in government.

FACTS

The natural order of economics is still out there. Washington's money-and-power-influenced, artificial reality cannot survive what historically has been the rise and fall of booms and busts in the last 100 years. Economics is now on steroids through high technology, the Internet, mass communications and frauds that cross national borders like cobwebs.

The MIC will be scaled down by collapse. The Russian MIC led to that country's financial demise. It is now apparent that we did not outspend the Russians at weaponry and interventions. We simply had a better credit rating that is now maxed out

The other government agencies will be re-scaled and downsized as well but not by any specific action taken by the pending or future federal establishment. The over 50 entities that make up the federal government, together with their corporate outsource services, will be shrunk dramatically because the US is broke. The feds will fight to preserve the artificial reality, but US financing and credibility on the world stage are drying up and the creditors are suffering.

No new administration can change the above facts by riding on the taxpayer's back with "Social Improvement", " Public Works" and "Creating Democracies in Other Countries" mantras. Such policies in the past have led to foreign interventions, thousands of young soldier’s deaths, bureaucratic growth in Washington and bloated corporations performing low quality service contacts.

Annual budget deficits and the national debt are at intolerable levels.

ECONOMIC REALITIES

The US will come home from military adventures abroad because it will no longer have the money to run them and it will cease bailing out failing commercial establishments because there will be no funding for that.

The US will re-align priorities at the state and the national level much like all the little "Joe the Plumbers" throughout the country, who are toting skinny 401K's without jobs. They represent the present and future tax base upon which this country will run. America will not spend its way out of this dilemma because there will be no cash or credit left to spend.

The US will demonstrate financial prudence out of necessity, align spending with available revenue, downsize the federal government and its corporate cadre, cultivate technology and the small business base and take care of its most important constituent here at home - the average tax payer.

The US will understand the above are not political objectives but economic realities that are here and now. World economics will not allow a new, financial, government/industrial complex to emulate or replace the MIC.

FEDERAL GOVERNMENT BECOMING MORE TRANPARANT ON WASTE, FRAUD AND ABUSE CASES

As recently announced by the Project on Government Oversight (POGO) Congress and President Bush have mandated a federally maintained database on waste, fraud and abuse cases by government contractors. The purpose of the record is to inform government contracting officers, source selection boards and buyers regarding details on past performance of a negative nature in this area that can weigh in future contract awards.

http://www.pogo.org/p/contracts/ca-081015-fcmd.html

Since the government database will not be visible to the public, POGO continues to publish this information from public records and has for many years as a non-profit organization. POGO has also pressed the government to assume responsibility for the information. That effort has now succeeded.

We applaud POGO's success.

http://www.pogo.org/p/x/aboutus.html

POGO has published its most recent records at its web site:

http://contractormisconduct.org/

The top 100 government contractor track records are shown as well as others. As POGO states in the analysis at its site, it should be noted that the most serious offenders continue to receive contracts from the very agencies that have prosecuted them for fraudulent activities.

POGO also points out that many of the top 100 contractors have no apparent instances of a negative nature or very few. It is possible to be a major player in the industry without resorting to waste, fraud and abuse.

The above table is POGO's latest data from public records on the top 100 federal government contractors. If you are interested in the details of these cases, go to the POGO site and click on the name of the company. A convenient summation of the government cases against the firm will appear.

HOW THE PENTAGON CONTRACTS ITSELF INTO A CORNER

Government Computer News (GCN) carried a story on the difficulties experienced with, "Performance-Based Contracting". The process was made part of the Federal Acquisition Regulation (FAR) in an attempt to pre-establish at contract award those discrete outcomes that determine if and when a contractor will be paid.

Interestingly enough, the article splits the blame for the difficulties right down the middle, stating the government typically has problems defining what it wants as an end product or outcome and looks to contractors to define it for them. More than willing to do so, the contactors detail specific end products or outcomes, set schedule milestones and submit competitive proposals.

The winner is selected based on what the government thinks it needs at the time to fullfill its requirement and a contract is negotiated. Once underway, the government decides it wants something else (usually a management-by-government committee phenomina with a contractor growing his product or service by offering lots of options).

The resulting change of contract scope invalidates the original price and schedule, so a whole new round of proposals and negotiations must occur with the winner while the losers watch something totally different evolve than that for which they competed. The clock keeps ticking and the winner keeps getting his montlhy bill paid based on incurred cost or progress payments.
The link to the GCN ariticle is below and is yet another indication of how government keeps getting bigger by incompetancy:

http://www.gcn.com/online/vol1_no1/42691-1.html

Latch onto the 1980's HBO Movie, "The Pentagon Wars", a humorous but remarkably true story of the design and development of one of the costliest weapons systems ever to grace the Pentagon Budget, the "Bradley Fighting Vehicle". The movie starred Kelsey Grammer as the Pentagon General who led the government establishment sponsoring the vehicle program. The profusion of design and performance specification changes and other difficulties which plagued the program for years was hilariously but accurately portrayed in the film. It was nominated for an Emmy.

Further details on The Defense Industrial Complex see the following posting:

http://rosecoveredglasses.blogspot.com/2007/02/warped-priorities.html