What Does Our History Of Massive Waste,Fraud And Abuse in Iraq and Afghanistan Portend for Ukraine And The Middle East Warfare ?

 

By  Ken Larson 

Our near term future as a country involves weighty decisions regarding our fiscal and national security.  There will be trade offs during the next federal government incremental funding authorization.  

We are approaching a National Debt of $37 Trillion with a downgraded fiscal credit rating while carrying the financial burden of ongoing support for NATO and the Ukraine war, investments in the Israel - Hamas conflict, as well as domestic program needs.  

A look over our shoulder at two driving factors in recent warfare is useful. 

________________________________________________________________________________

DRIVING FACTOR 1 - GOVERNMENT CONTRACTOR  MOTIVES:

The motives of the U.S. Military Industrial Complex (MIC) and The US Agency for International Development (USAID) contractors fostered continuing wars.  Continued war nets billions in sales of weapons and massive construction and redevelopment dollars for international companies. They often operated fraudulently, fostering waste, fraud and abuse.   

It is common knowledge that many of these corporations spent more each year in lobbying costs than they paid in taxes and passed exorbitant overhead and executive pay costs on to the tax payer, thus financing the riches of their operating personnel while remaining marginally profitable to stockholders.

I watched this from the inside of many of these companies for 36 years. You can read my dissertation on the subject at:

Odyssey of Armaments | Ken Larson - Academia.edu

Here is an example of how the lobbying and behind the scenes string pulling worked during the run up and the conduct of the war incursion into Iraq: 

CorpWatch : US: Lockheed Stock and Two Smoking Barrels

DRIVING FACTOR 2 - LACK OF CULTURAL UNDERSTANDING 

There was a complete lack of cultural understanding between U.S. and Western decision makers and the middle east culture they were trying to "Assist" by nation building. 

The only real cultural understanding that existed during the period was in the person of General Schwarzkopf who spent much of his youth in the Middle East with his father, an ambassador to Saudi Arabia. He was fascinated by the Arab culture, commanded their respect and, like Eisenhower, led a successful coalition during the first Gulf War to free Kuwait.  

He astutely recommended no occupation of Iraq, went home and stayed out of government. Norman, like General Eisenhower, knew the power of the MIC. 

Eisenhower's Departing Speech

U.S Tax payers funded billions in USAID and construction projects in Iraq. The money was wasted due to a lack of cultural understanding, waste,  fraud and abuse. The Project On Government Oversight (POGO) has documented that aspect of the Iraq war history, as well as similar motives and abuses in Afghanistan. 

POGO on Iraq

CONCLUSION AND A HOPE FOR OUR FORTHCOMING DECISIONS:

There is history repeating itself here - much like Vietnam and Iraq, the above two factors are deeply at play again, with a lack of astute learning in our government as we look back over our shoulder.

We must come to the understanding, like a highly respected war veteran and West Point Instructor recently stated, “Victory’s been defeated; it’s time we recognized that and moved on to what we actually can accomplish."

West Point Modern War Institute

Frank Spinney is an expert on the MIC. He spent the same time I did on the inside of the Pentagon while I worked Industry. You may find his interviews informative.

Inside the Pentagon: 30-Year Insider Chuck Spinney

I have hope these historical factors are useful in considering our future financial and defense security and that every U.S. citizen from the individual voter to the politician will consider them in their decision-making. 

What Can We Learn From People Who Are Different From US

Instead of Cutting Services Because of Sequestration, Why Can't Government Departments just Make Their People Work Harder?

 

The title to this post is from a question asked on Quora by a member at that site:

https://www.quora.com/U-S-Federal-Budget/Instead-of-cutting-services-because-of-sequestration-why-cant-government-departments-just-make-their-people-work-harder

 The following is our response:

The US Government is monumentally inefficient and does not design systems, practices and policies like the commercial venue to save money or make a profit.

Government typically designs systems to spend money and perpetuate bureaucracy. They hire armies of high salaried General Services civilians and large, independent contractors to do so on cost plus and time and materials contracts with a baseline that changes every time the wind blows.  We watched this phenomena from the inside for 36 years, trying to control costs. It was a maddening process.

New buzz words continually surface such as "Performance Based Contracting". We have hands on experience with that one. It 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 blame for the difficulties goes right down the middle, with the government typically having problems defining what it wants as an end product or outcome and looking to contractors to define it for them. More than willing to do so, the contractors 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 fulfill its requirement and a contract is negotiated. Once underway, the government decides it wants something else (usually a management-by-government committee phenomena 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 monthly bill paid based on incurred cost or progress payments. The link to a Government Computer News article on this phenomena is below:

http://www.gcn.com/online/vol1_no1/42691-1.html
 
The present state of the economy will not allow the aforementioned to continue. Government agencies are now hard pressed to insure the most "Bang for the Buck". It is in the long term interests of astute contractors to assist in that endeavor. The only way to achieve such an objective is through sound technical, cost and schedule contract definition via an iterative process of baseline management and control. The following article is our attempt to address that process:

http://www.smalltofeds.com/2009/08/contract-baseline-management-in-small.html

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?

Vets home resident says Rose’s claim to get money back is unfounded

When reading the story linked above, please recall the following:

As the Hastings Gazette has previously reported, there are 3 important differences between Mr. Rose and Mr. Weeks:

1. Mr. Rose was denied his citizenship by his country for a period of 4 years. His country later admitted the error and reinstated it, only after Mr. Rose acquired his file under the Freedom of Information Act on his own, located a lawyer on his own and worked on his case with legal counsel which he acquired on his own.

2. Mr. Rose is 70 years old and was denied his rightfully paid social security for a period of almost 4 years due to the government error on his citizenship status.

3. Mr. Rose has never filed for any kind of disability, worked for over 40 years in this country and paid his taxes during that period.

SAIC Case Sheds Needed Light on World of Government Contracting

By Steven Pearlstein

Friday, July 10, 2009
Washington Post

Science Applications International Corp. is not only one of the federal government's largest contractors -- with more 17,000 Washington area employees, it is the region's fourth-largest private employer. So it is of more than passing interest that after a lengthy investigation, the Justice Department has now accused company executives of conspiring with corrupt Navy officials to rig a 2004 computer contract potentially worth billions of dollars.

Last week the Justice Department asked a federal judge in Jackson, Miss., to order the company to pay damages that could top $350 million -- a lot of money for a company that earned $450 million last year. A judgment might also lead the government to temporarily suspend SAIC from competing for new contracts.

See Above link to read more.

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.

TWO COLLAPSING TOWERS - WALL STREET AND THE MILITARY INDUSTRIAL COMPLEX

While we observe Wall Street go through an implosion and our lawmakers mortgage the future of America with the associated bailout, let us keep an eye on another adjacent and related tower with a weak foundation, teetering dangerously in the wind. The Military Industrial Complex (MIC) is also subject to bad decision-making by misinformed and manipulated government officials.

HISTORY

Congress has just funded the MIC at only slightly less than the 700B now necessary to bail out the US Financial catastrophe. The MIC is monumentally dangerous and has led our country into a continuing series of costly, fraudulent wars since Korea. Eisenhower forecasted the danger in his departing speech:

http://www.youtube.com/watch?v=8y06NSBBRtY

The most recent MIC adventure is being fought in the memory of 3,000 dead civilians attacked by a terrorist the US created by not leaving the Middle East after the first Gulf War. That excursion has killed thousands of our finest youth and maimed the lives of countless others. The average American will pay for this ruin in decades to come through taxes supporting hospital care, social services and veteran's homes.

HOW DO I KNOW?

I am a 2 tour Vietnam Veteran who recently retired after 36 misguided years working in the defense industrial complex on many of the weapons systems being used by our forces as we speak. Given a clearly defined mission and the best armaments and systems in the world, I believed that another Vietnam could be avoided for the American Soldier.

I was wrong.

I live in a Veteran's home, having recently undergone treatment through the VA for PTSD and Depression, long overdue some 40 years after the Tet Offensive that cap stoned my military 2nd tour in Southeast Asia with a lifetime of illness:

http://rosecoveredglasses.blogspot.com/2006/11/odyssey-of-armaments.html

Politicians make no difference. I saw this on a daily basis from inside the MIC.

The chart at this posting illustrates the historical % of our national debt to our GDP. That % is on a precipitous rise with the current US warfare mentality and imminent Wall Street bailout:

PLEASE CLICK ON IMAGES OR DOWNLOAD TO ENLARGE

Other countries will not tolerate our on-going presence, decreasing value on world market and shortsighted vision, based exclusively on stockholder profits. The Wall Street financial tower has fallen. The MIC will be next.

ABOUT THE MILITARY INDUSTRIAL COMPLEX

It is corrupt and driven by corporate influence:

http://www.playboy.com/magazine/features/lockheed/index.html

http://www.vanityfair.com/politics/features/2007/03/spyagency200703

http://www.vanityfair.com/politics/features/2007/11/halliburton200711

It is broken and riddled with incompetence:

http://rosecoveredglasses.blogspot.com/2008/04/us-federal-government-procurement.html

http://rosecoveredglasses.blogspot.com/2007/01/what-american-public-must-know-about.html

THE COLLAPSE

The MIC, like Wall Street, will go bust and then be re-scaled, fixed and re-designed to run efficiently and prudently, just like any other big machine that runs poorly or becomes obsolete or dangerous. The situation will right itself through yet another trauma.

A government ENRON is on the horizon, with an associated house cleaning. The next president will come and go along with his appointees and politicos. They will try to fix the financial mess and become pawns of corporate America in widening our military influence attempting to mend corporate bank accounts. But the MIC tower will implode as well - the next big event in government you will watch is the collapse of that establishment.

HOPE

Non-profit visionaries and small business know the course that must be taken and they are taking it:

http://techinsider.nextgov.com/2008/04/einstein.php

These "Action People" are not in our government. They are more practical than that. They are the communicators, the true venture capitalists setting up worldwide non-profit foundations (Gates and Buffet for example). They are like the Bill Moyers, perpetually exposing waste fraud and abuse and then going one step further to fix it from the inside. They are the young inspirational members of the small business base in this country that will be tasked with picking up the pieces and re-inventing the future so our government can follow along.

As a volunteer counselor, handling 30 cases a week through SCORE I see every form of unique small business inventiveness imaginable - efficiently created, using technology to the max and not seeking financing to the hilt - only the opportunity to succeed:

http://www.smalltofeds.blogspot.com/

http://www.score.org/


The US GDP is still the largest in the world.

Our high technology cannot be matched.

We have enough weapons systems and science to beat all our competitors and solve our problems.

We need to come home.