"WHEN WILL THE CONTRACTORS CONTRACT?

How the Pentagon Floats to the Tax Payer the Massive, Tiered, Overheads of Major Corporations in the Military Industrial Complex

 Chuck Spinney Photo Courtesy of Bill Moyers Interviews at "Now" on PBS http://www.pbs.org/now/transcript/transcript_spinney.html 

The following article is an outstanding guest blog by Chuck Spinney  on the Project on Government Oversight (POGO) a venerable Washington D.C. Non-Profit that has been around since they first assisted in bringing attention to $640 toilet seats and $436 hammers of the 1980s.

Spinney spent 33 years at the Department of Defense including 26 years as a staff analyst, has testified before congress and won many awards for his straight forward critique of the Pentagon.

Rather than blowing whistles on classified data, Chuck has been respected for years for his straight-forward views and recommendations on how the Pentagon, our biggest government agency, has been managed.   This is a man who has been there.

As Spinney points out the reasons for the astounding costs at the Pentagon are the  same today - "It is all about allocating overhead spending by contractors in an  unaccountable financial system"

Below is an extract from Chuck's article and a link to it at POGO:

POGO

 "The fact that the Pentagon does not have an in-house capability to do  audits is a reflection of its own priorities of delay and obfuscation.  The Pentagon does not have a capability to make sense out of accounting  systems after 20-plus years of failing to meet its legal obligations,  because it has not assigned a high enough priority to the problem. Punt  bluntly, the Pentagon does not want to have that capability.

 The reason the Pentagon does not want auditable books is simple: the Military-Industrial-Congressional Complex benefits  from the money flows hidden in the perpetual chaos of the bookkeeping shambles. "

 

http://www.pogo.org/blog/2013/06/when-will-the-contractors-contract.html

 

 

How Does One Inculcate Independence?

               Awards Ceremony U.S. Department of Agriculture Small Woman-Owned Business of the Year

A MENTORING QUESTION ON "QUORA":

"I understand that there is a fine line between when you step in to guide and when you expect/want the mentee to figure it out on their own. How would you slowly push them towards the independent side?"

OUR ANSWER:

"Do not work the issue or solve the challenge for them.  Educate and provide a road map so they understand it and evolve the solution for themselves.

Offer a map with variable shoulders on the road and the flexibility for a  few detours from which recovery can be achieved."

      

Travelers on the road of knowledge en route to wisdom learn best via a vehicle they  drive themselves.  Not all travel at the same speed or take the same  route to a destination.

Here is a success story that I had the privilege to witness from a company that bridged the gap to which your question refers.  Note the link to the astute article they have shared with the small business community at the link below:

Top 3 Success Strategies from a Thriving Small Business

 

A Failing Veterans Health Care Handoff

ISSUE

Massive backlog reveals the dire necessity for simplification, communication and efficiency in processes, systems and government service contracting in DOD and the Veterans Administration. 

BACKGROUND

A recent 3 part special in Time Magazine addresses the serious gaps between treatment, benefits and services processes and systems between the military services and the Veterans Administration:

http://nation.time.com/2013/04/22/what-the-hell-is-going-on-with-va/#ixzz2RnspoSM4

"While awaiting processing, "the veteran’s claim sits stagnant for up to 175 days as VA awaits transfer of complete (service treatment records) from DoD,":


http://veterans.house.gov/sites/republicans.veterans.house.gov/files/2013%2004%2016%20HVAC%20to%20Sec%20Hagel.pdf

After years of work to move toward integrated electronic records that would eliminate this sort of delay, Defense Secretary Chuck Hagel recently conceded that the Defense Department is not holding up its end of the bargain to improve the disability process.

"I didn’t think, we knew what the hell we were doing.":

 http://www.federalnewsradio.com/394/3288748/Hagel-orders-DoD-to-restructure-path-toward-integrated-health-record

HISTORICAL SIMILARITIES
 
The above scenario is not unlike the Walter Reed Army Hospital care fiasco a few years ago, before the facility was shut down and consolidated with the Bethesda Naval facility.

OTHER SYMPTOMS

The VA decided to have those who would actually use the system (claims processors) work with software developers. This process took longer but will create a system more likely to meet the needs of those who actually use it. VA also worked closely with major congressionally-chartered veterans’ service organizations.

This year, 2013, is the year in which regional offices are being transitioned to the new electronic system.

ROOT CAUSE

Both the services and the Veterans Administration use service contractors to perform this type of systems development. Government Computer News (GCN)  carried a story on the difficulties experienced with, "Performance-Based Contracting", which has been 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 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 the GCN article is below:

http://gcn.com/articles/2006/12/01/performancebased-contracting-still-baffles-agencies.aspx

CONCLUSION

The present state of the economy and the needs of our servicemen 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.

Our returning soldiers and those who have served before deserve better.

ARE AMERICA'S BEST DAYS BEHIND US?

Comparing US state GDP with countries

This question on Quora attracted our attention.  In response we point out that 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.

The above graphic and the associated  metrics at "The Economist" linked below leave not doubt with regard to the future potential of the US economy. 
 
http://www.economist.com/node/21014355
 
We believe Mr. Zakaria's Time Magazine article , "How to Restore the American Dream"  is spot on.  It is an interesting analysis and positive future forecast. The link to the article is below:

http://www.time.com/time/magazine/article/0,9171,2026916,00.html
 

Mr. Zakaria addresses how the US is adapting to the "New Normal", which has substantially redefined the American Dream.

When the US ceased being an industrial giant it switched to consumerism and high technology to replace the missing base.

The challenge resulting from that transition has been in leaving the American worker behind and with corporations that are operating globally on a supply and demand basis responding to shifts in demographics, economics and the resulting markets.

In essence the US is climbing on the world economic train as individuals, businesses and as a government and joining those who are on board and leaving the station.

It is requiring a shift in thinking, an emphasis on education, diversity enhancement, strong doses of American ingenuity and hard work.

We are en route to making these adjustments and our position in the global economy will be secured by them. 

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

The Truth About the NRA

Other nations do not have an organization like the NRA. Every US citizen should read the full history of the NRA as published by the Washington Post in the article linked below entitled:

"How NRA’s true believers converted a marksmanship group into a mighty gun lobby"

 http://articles.washingtonpost.com/2013-01-12/politics/36311919_1_nra-leaders-nra-officers-mighty-gun-lobby

Here is an excerpt:

"In gun lore it’s known as the Revolt at Cincinnati. On May 21, 1977, and into the morning of May 22, a rump caucus of gun rights radicals took over the annual meeting of the National Rifle Association.

The rebels wore orange-blaze hunting caps. They spoke on walkie-talkies as they worked the floor of the sweltering convention hall. They suspected that the NRA leaders had turned off the air-conditioning in hopes that the rabble-rousers would lose enthusiasm.

What unfolded that hot night in Cincinnati forever reoriented the NRA. And this was an event with broader national reverberations. The NRA didn’t get swept up in the culture wars of the past century so much as it helped invent them — and kept inflaming them. In the process, the NRA overcame tremendous internal tumult and existential crises, developed an astonishing grass-roots operation and became closely aligned with the Republican Party.

Today it is arguably the most powerful lobbying organization in the nation’s capital and certainly one of the most feared. There is no single secret to its success, but what liberals loathe about the NRA is a key part of its power. These are the people who say no."

HAPPY BIRTHDAY TONY ROSE - "ROSE COVERED GLASSES" FOUNDER

TONY (ON RIGHT) AT "ROSE COLORED GLASSES" BOOK RELEASE"JANUARY 2010

In Honor of General H. Norman Schwarzkopf - Dead at Age 78

http://en.wikipedia.org/wiki/Norman_Schwarzkopf,_Jr.

 

He fought a just and honorable war assisting many Middle East allies and other countries to free Kuwait. General Schwarzkopf is a true American hero. You will note he came home and stayed home. His successors then hung around with an imperialist attitude, resented by cultures that have hated that type of control for thousands of years.

These incursions have killed thousands of our finest youth and maimed the lives of countless others. We learned nothing from the Russians, our own experiences in Vietnam and similar outings in the past.

The average American will pay for this ruin in decades to come through taxes supporting hospital care, social services and veteran's homes.

The Real Issue of Gun Control

As  former military men, security specialists and those who have taken lives in combat, we  assure you of the following:

If you are carrying a gun and you are NOT one of the following:


1. A soldier

2. A policeman or a duly authorized security officer

3. A licensed hunter of wild animals in the woods


 You are part of the problem, not part of the solution.

HAPPY HOLIDAYS 2012 FROM ROSE COVERED GLASSES

PLEASE CLICK ON IMAGE TO ENLARGE

VOTE TO "DE-CONSTIPATE GOVERNMENT"

VOTE:

The candidates who will make conscious decisions to participate in bipartisan plans to "De-Constipate" government as a first priority.

The laxatives are: Leadership, Listening, Compromise and Action - in that order.

PRACTICAL REALITY IN GOVERNMENT FOR 2013

George Friedman at STRATFOR recently offered two commentaries on our nation and its future leader that we find worthy for consideration on the eve of the 2012 Elections.

PLEASE CLICK ON IMAGE ABOVE TO ENLARGE EXTRACTS AND DOWNLOAD COMPLETE ARTICLES BELOW

http://www.stratfor.com/weekly/purpose-presidential-debates?utm_source=freelist-f&utm_medium=email&utm_campaign=20121024&utm_term=gweekly&utm_content=readmore&elq=8924874ddc944edf9cb519320735b9a2

http://www.stratfor.com/weekly/character-policy-and-selection-leaders?utm_source=freelist-f&utm_medium=email&utm_campaign=20120904&utm_term=gweekly&utm_content=readmore&elq=b785529990204ebfbe83d08a9a9b9051

Mr. Friedman points to a practical reality.  Presidents manage as they must. The real issue for the winner of this election will arise when the Chinese and our other major creditors stop showing up at our bond auctions and our credit and credibility diminish to dysfunctional levels on the world stage.

Until then our stagnated, polarized, congress will kick the can down the road as they have with current legislation that postpones any consideration of the issues until after the election and lays the challenge off on Sequestration, due to begin in early January, 2013.

The new White House occupant (or the same one) will be just as bound and tied by the inability of our elected representatives to compromise. This situation is an economic illness.

We have seen a similar situation take down other countries in recent times and place them at the mercy of the international community.  It has threatened the financial future of Greece and other countries in Europe. 
 
Our country has caught a catchy illness of political diatribe and inaction.  Let us hope for some leadership in Congress that is driven by the practical reality of the world at large and is not based on the rarefied air of financial pocket-lining on the Washington D.C.  Beltway.  

The clock is ticking:

http://www.usdebtclock.org/

THE UNITED STATES VETERANS ADMINISTRATION - PROGRESS AND PROCLIVITIES

INTRODUCTION

We have noted improvements in the medical element of the U.S Veterans Administration with significant advances in patient care, records keeping and service to soldiers in need when they return from war or fall into circumstances in which they require assistance:

http://www.time.com/time/magazine/article/0,9171,1376238,00.html

We believe the VA medical care veterans are receiving, and the associated facilities are top notch.  We base this belief on having received this care  ourselves and observing the results from others receiving VA medical services around us.

As the US has continued its war fighting incursions into foreign countries, the VA has been required to expand exponentially in terms of coverage, organization, programs and budget from the tax payer coffers. The most current budget request by the Administration for the VA tops $140 Billion for the next fiscal year.

This growth has resulted in administrative and management challenges due to the broad swath the VA must cover across the spectrum of our society and the transitions in which it must participate within people’s lives from the aging vet to the returning combatant.

RECENT DISTURBING TRENDS AND OCCURRENCES

At this juncture it must be noted that the VA is falling into several of the traps that other large federal agencies have encountered.  The government is in the business of spending money, not making it and growth of the type the VA has undergone requires strong management and oversight. 

Below are examples of areas outside the medical care elements of the organization that are never the less posing substantial risk to the care of our veterans.

Blatant Issues in Handling Veterans Care Application  Backlogs

As noted by Time Magazine:

“The Department of Veterans Affairs inspector general reported that paper had piled so high at the VA’s regional office in Winston-Salem, N.C., that it “appeared to have the potential to compromise the integrity of the building.”

http://nation.time.com/2012/08/10/guess-the-va-does-have-a-paperwork-problem/

Mismanagement of Human Resources and Training

As noted by DOD Buzz:

“The chairman and ranking members of the House Veterans Affairs Committee are demanding a complete accounting of where and how the Department of Veterans Affairs has spent money on employee conferences since 2009.

The latest demand comes as the committee’s senior members released additional information gleaned from a preliminary VA Inspector General’s report on two Orlando, Fla., conferences held for VA human resources employees in 2011.

Among the findings, the VA spent $52,000 producing two 8-minute videos in which an actor portraying Army Gen. George Patton laid out the role of VA human resources personnel and exhorted them to meet their mission. A shortened version of the video is available below.

The department also spent $84,000 on VA-branded promotion items, including up to $25,000 for pens, highlighters, post-it notes and hand sanitizers.

Rep. Jeff Miller, R-Fla., and Rep. Bob Filner, D-Calif., want three years worth of data because they say past VA testimony on conference costs has been contradictory, ranging from $20 million in both 2011 and 2012, to $100 million.”

http://www.dodbuzz.com/2012/08/22/va-accounting-questioned-after-ig-report-2/

Mismanagement of Small Business Set-aside Programs

As noted by POGO:

“A new report by the Department of Veterans Affairs Office of Inspector General (IG) has found another large business improperly benefited from federal small business contracts. The offender this time is Health Net,  ranked 221 in the most recent Fortune 500 with $11.9 billion in revenue last year.

As POGO takes great pains to point out, the contractors themselves aren’t entirely to blame for misconduct in federal small business contracting. In this instance, the IG found that VA personnel responsible for administering the contracts were fully aware that Health Net, not ETS, was performing all of the work. The VA also did not properly justify its decision to award the contracts as SDVOSB set-asides rather than through full and open competition.”

http://pogoblog.typepad.com/pogo/2012/08/inspector-general-finds-contractors-government-both-responsible-for-small-biz-contracting-violations.html

CONCLUSION

The areas noted above must have management correction, be controlled and brought to the same standards of performance as the medical arm of the Veterans Administration Community. 

The proclivities involving  lax administration, wasteful human resources process and abuse of small businesses, many of which veterans themselves run, must be corrected. 

Doing so will insure an acceptable level of focus on assistance to the men and women who have served in our armed forces.    

CITIZEN PARTICIPATION AND TRUE STATESMANSHIP IN GOVERNMENT AND BUSINESS

FORMER SENATOR BILL BRADLEY

ABSOLUTE REQUIREMENTS IN OUR AGE

Tyranny sprouts within massive organizations through influences that embed themselves in economies and assume a life of their own. These organizations become entrenched and difficult to change because they are wired to so much of economic and public life (a defense company in every state, a pork project tacked onto a defense appropriation). We target our elected officials as figureheads for our frustration, when in fact the real culprit is a big, faceless machine grinding onward, never changing, because we (the citizenry and the politician) will not bite the bullet and dismantle it.

SENATOR BRADLEY

We applaud the recent commentary in the May 14^th, 2012 article in Time Magazine by former Senator Bill Bradley entitled “Citizens United”:

http://www.time.com/time/magazine/article/0,9171,2113798,00.html

Here is an extract:

“To begin, citizens should insist on a presidential campaign about the future, not a blamefest about the past. Candidates' narratives can have a historical dimension about how we got where we are, but the bulk of their story must be about the future. If what you hear is only blame or bromides, change the channel. Haven't we had enough of those two things over the past 12 years?

Without leaders who level with the people about what needs to be done and how long it will take, there is no way to build support for the tough decisions necessary to solve our problems. People are tired of seeing moneyed interests dominate the House of Representatives — the people's house. They're tired of narrow interests raiding the U.S. Treasury in collusion with members of Congress who, when they leave office, are employed as lobbyists by the very industries whose interests they promoted in Congress. (The same applies in spades to congressional staff.) They're tired of seeing their Presidents appear at fundraisers and hedge their bets and compromise their beliefs to raise campaign money. People are tired of being taken for granted. They yearn for leaders who will level with them, not pander to them.”

As students of history we know much of what we are experiencing today in war and politics is tied to human nature.

As Mr. Bradley concludes:

“Now is the time for citizens to insist on answers to real questions and for the media to serve the public more diligently than they serve their advertisers. Now is the time for follow-up questions and enough airtime for candidates to lay out their programs. What, specifically, will they do about jobs, the deficit, political corruption? How do they see America's role in the world? Now is the time for politicians to show us that they are more interested in doing something than in being somebody. There is a great difference between a leader and a celebrity. The nation has had enough of politicians fascinated with celebrity. What we need are courageous leaders who serve the public and not themselves, who devise a plan to save the country and fight for it because they know that the well-being of millions of Americans is at stake.”

 OUR CONCLUSION

A new brand of politics and accountability must then emerge, one that will deal from within when organizations self-destruct catastrophically from greed and avarice. The big issue after such events will be: "What do we put in the place of such bureaucracies gone afoul ?" The US political system classically appoints a blue ribbon panel to study such problems spread the blame and write a detailed report no one reads. We must do better then that in the future. The impending trauma will not permit it.

Now is indeed the time for true statesmanship in government business.

Supporting Veterans to Attend Accredited College Programs

This article is brought to you courtesy of June Olson. June recently graduated with a degree in educational psychology. She currently works as a writer on all things education and is always interested in connecting with bloggers online.  You may reach June at june.olsen80@gmail.com

____________________________________________________________________

The argument that many veterans need education and numerous support systems when they return from service is a no-brainer. Adjusting to civilian life after being away at war or stationed abroad is no joke. An economic downturn adds to the problem by making it hard to find a job. Feeling stressed and confused, a veteran must then compete with masses of qualified candidates for very few jobs. Veterans need effective support systems and support for colleges online or on campus that consider all aspects of their needs, including financial assistance and access to educational and/or vocational training.      

When a veteran returns from war, life can be overwhelming. Going from the camaraderie of military life to living alone or readjusting to family is only one factor. Flashbacks to horrifying war images can be common emotional setbacks. Figuring out the next step in life can be mind-boggling and stressful. Especially for veterans who did not go to college or train for an occupation before joining the military, career options can seem limited. Veterans often transition from a situation of a set military schedule and structure to a life of ambiguities and lack of direction.

Searching for work in a tight job market only complicates things. A veteran might be a skilled carpenter but live in an area with no openings in carpentry. Gaining knowledge and skills that can be applied to available jobs is an important first step. Starting college or going back to finish a degree becomes essential for getting a job.

Fortunately, help exists. Veterans interested in college programs that offer two-year degrees or higher can benefit from GI bill programs. The Post-9/11 GI Bill gives veterans who served for at least 90 days on or after September 11, 2001 access to benefits for attending accredited colleges and universities. Benefits include a percentage of tuition and fees, a monthly housing allowance, a stipend for books and supplies and $500 in cash for veterans who must relocate from a highly rural area to go to school. This program also offers tutorial assistance benefits and reimbursement of up to $2,000 for a certification or licensing test. Veterans can receive benefits for up to 36 months under this bill, which helps them get back on their feet.
 
The Yellow Ribbon Program is another alternative. Under the Post-9/11 GI Bill, degree-granting institutions can make funds available for veterans through this program. The tuition amount is left up to the university; the VA matches that amount and pays the university directly. Veterans must then apply to the university, which then looks at its number of open slots and notifies the veteran of acceptance into the Yellow Ribbon Program.

Between 2008 and 2010, the number of veterans who took advantage of VA education programs increased tremendously. Although the number of VA undergraduate attendees decreased during that time, attendance in non-degree and vocational programs saw a significant rise. This trend may continue as more veterans take advantage of educational benefits programs.

Short-term training and education assistance is also available for unemployed veterans through the Veterans Retraining Assistance Program. For veterans who are at least 35 and ineligible for the Post-9/11 GI Bill or other VA-sponsored education benefit programs, this program may be the answer. It gives participants a year's worth of full-time pay while enrolled in an approved technical school or community college. They must train specifically for high demand occupations in a program that leads to a certification or associates degree. Through this and other GI bill programs, veterans can ease the transition to civilian life by going to school and becoming equipped for a tight job market.

Cameo Presentation - Rose Colored Glasses Satire by Tony Rose

With the present day emphasis on the National Debt and Health Care, it seemed only fitting to publish a cameo of the apparently ageless satire by Tony Rose below:

"Economists Coin New Term for Study of Deficit Spending"

"Micro-Electronic Medication of Your Years"

(Please click on image or title banner above to enlarge)

PLEASE CLICK IMAGE OT TITLE BANNER ABOVE TO ENLARGE

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?