“The gouging that takes place is unconscionable. It's unconscionable.”
— 60 Minutes (@60Minutes) May 21, 2023
Shay Assad, a former Defense Department contract negotiator, said the Pentagon overpays for almost everything – from missiles and planes to spare parts. pic.twitter.com/z9xLpGV1iC
When a part breaks, the Department of Defense turns to contractors to replace them. Some companies have monopolies on needed parts. The government will pay subcontractor TransDigm $119 million for parts that should cost $28 million – an extra $91 million. https://t.co/fYZi66kQcz pic.twitter.com/JkgY5HXRmL
— 60 Minutes (@60Minutes) May 21, 2023
In 1991, before defense contractors consolidated, shoulder-fired Stinger missiles cost $25,000. Now, the sole supplier charges more than $400,000 a piece, making it costly to replace each missile sent to Ukraine. https://t.co/Ij4C4sEd3k pic.twitter.com/KvKUDcDOai
— 60 Minutes (@60Minutes) May 21, 2023
CBS 60 Minutes: Weapons contractors hitting Department of Defense with inflated prices for planes, submarines, missiles
With the U.S. supplying billions-of-dollars of munitions to Ukraine and growing tensions in the Taiwan Strait, some Pentagon generals are sounding alarms about the dwindling supply of U.S. weapons ... at a time when the cost of replacing them is skyrocketing – we wondered why the Pentagon is finding it hard to procure weapons it needs at a price taxpayers can afford? A six-month investigation by 60 Minutes found it has less to do with foreign entanglements than domestic ones - what can only be described as price gouging by U.S. defense contractors.
Read more ....
Update #1: How the Pentagon falls victim to price gouging by military contractors (CBS 60 Minutes Overtime)
Update #2: Former Top Pentagon Official Reveals Brazen Defense Contractor Price Gouging (Truth Out)
WNU editor: Here is an easy prediction. Nothing is going to change.
17 comments:
Yet somehow we're getting such a great deal that Sullivan found $3 billion extra to toss their way.
Lol no shit. It’s open season on the tax payer with dementia Joe and the wokies in the White House
This is how Russia can put out so much kit, mechanical and sophisticated, at a fraction of US costs. I think they spent before the war about 70 Billion a year. we spend 700 billion. Yet, Russia is considered a peer opponent.
I am intrigued by the fact we built the Golden Gate bridge in four years. Shasta dam was built in 4 years. They built a conveyor belt to get aggregate to the site that was almost ten miles long.
You just can't do things like this in this country anymore even though our equipment is so much bigger and more powerful. Corruption, lawyers, the shake down jerks, so called environmentalist, (mankind and civilization obstructionist) but primarily the corruption of DC. So much of those extraordinary expenditures are sent right back to politicians through donations and lobbyists.
Interesting 🤔
The price for parts and data rights would be in the original purchase price. The government often uses "cost plus".
I would have to see more data, which CBS cannot or is too stupid to provide.
I grew up on 60 Minutes, Disney, Lawrence Welk and such fare. 20/20 too. Unless they have someone DAWIA certified and has done the requisite digging, I am not going to believe the 60 Minutes.
Rule of thumb I have heard is that replacement auto parts are 3X the cost of when you buy your car. Military hardware would be different?
"I am intrigued by the fact we built the Golden Gate bridge in four years. Shasta dam was built in 4 years. They built a conveyor belt to get aggregate to the site that was almost ten miles long."
There is a reason Ron.
Environmentalists Are Why We Can’t Have Infrastructure
Why can’t we build anything? Good luck getting a permit
"Industry estimates place the direct cost of environmental studies at between 0.5% to 3% of a project."
Plus, A lot of items for military procurement go through destructive testing. A certain percentage of items are ran until they fail or meet a time threshold. there is testing with corrosive Arizona sand. there is something for testing called Arizona sand or something. Or it will be tested for corrosion resistance against salt fog.
"In the decades since, NEPA was weaponized to virtually shut down development in the country."
No more Golden Gate
blame NEPA
"Environmentalists intended to use environmental impact statements to slow and eventually shut down construction."
we are going to hell in a hand-basket...but the cost of a handbasket is way overpriced.
sure. I too blame Bidn. We did not have this problem with gross overcharging when Trump was president. He checked the books daily
ARIZONA TEST DUST HISTORY
Arizona sand has been used for testing filtration, automotive, and heavy equipment components for decades. A variety of names have been applied to Arizona sand including Arizona Road Dust, Arizona Silica, AC Fine and AC Coarse Test Dusts, SAE Fine and Coarse Test Dusts, J726 Test Dusts, and most recently ISO Ultrafine, ISO Fine, ISO Medium and ISO Coarse Test Dusts. Many military and industrial specifications require use of Arizona Test Dust and refer to one or more of the above names. This report will attempt to describe particle size differences and provide a brief Arizona test dust history dating back to 1940.
https://www.powdertechnologyinc.com/test-dust-contaminants/test-dust-history/
In 1991 we had competition, not now.
who ? where? name the companies that were competition but no longer are. Did they merge? go under?
I blame Hillary's laptop
If companies merge and there is no competition, you have to do a sole source justification.
Sukhoi and MIG merged and I do not see you blubbering about it.
Options to guarantee the company a profit while limiting too much profit is cost plus model.
Afterwards it comes to proper accounting practices.
If the government moves the goal posts, which has happened, costs go up.
ho ho ho
BS. Price gouging is an unfair practice in finance law.
And do not compare Russian to US Econ systems. They are not the same. US laws against this type of action have been around since the Sherman anti trust act.
Problem is that they were rescinded or not enforced.
Why? Because the MIL IND complex basicly feeds the BOLB with pay offs, kick backs and cushy jobs. It also pours billions into lobbing firms and DC and Brit think tanks that support this system...aka the Blob
And once again, the editor is Right, it will not stop.
It will be one of the reasons America will probably be defeated in the next war... Why? Because these companies care more about thier bottom line than the American Nation.
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