The Golden Fleecer of the Year: Boeing
November 29, 2024
When I was working in Washington, DC, I had the opportunity to be an “advisor” to the head of the Joint Committee on Atomic Energy. I recall a comment by Craig Hosmer (R. California) and retired rear admiral saying, “Those Air Force guys overpay.” The admiral was correct, but I think that other branches of the US Department of Defense have been snookered a time or two.
In the 1970s and 1980s, Senator William Proxmire (D. Wisconsin) had one of his staff keep an eye of reports about wild and crazy government expenditures. Every year, the Senator reminded people of a chivalric award dating allegedly from the 1400s. Yep, the Middle Ages in DC.
The Order of the Golden Fleece in old timey days of yore meant the recipient received a snazzy chivalric order intended to promote Christian values and the good neighbor policy of Spain and Austria. A person with the fleece was important, a bit like a celebrity arriving at a Hollywood Oscar event. (Yawn)
Thanks, Wikipedia. Allegedly an example of a chivalric Golden Fleece. Yes, that is a sheep, possibly dead or getting ready to be dipped. Thanks,
Reuters, the trusted outfit which tells me it is trusted each time I read one of its “real” news stories, published “Boeing Overcharged Air Force Nearly 8,000% for Soap Dispensers, Watchdog Alleges.” The write up stated in late October 2024:
Boeing overcharged the U.S. Air Force for spare parts for C-17 transport planes, including marking up the price on soap dispensers by 7,943%, according to a report by a Pentagon watchdog. The Department of Defense Office of Inspector General said on Tuesday the Air Force overpaid nearly $1 million for a dozen spare parts, including $149,072 for an undisclosed number of lavatory soap dispensers from the U.S. plane maker and defense contractor.
I have heard that the Department of Defense has not been able to monitor some of its administrative activities or complete an audit of what it does with its allocated funds.
According to the trusted write up:
The Pentagon’s budget is huge, breaking $900 billion last year, making overcharges by defense contractors a regular headache for internal watchdogs, but one that is difficult to detect. The Inspector General also noted it could not determine if the Air Force paid a fair price on $22 million of spare parts because the service did not keep a database of historical prices, obtain supplier quotes or identify commercially similar parts.
My view is that one of the elected officials in Washington, DC, should consider reviving the Proxmire Golden Fleece Award. Boeing may qualify, but there may be other contenders for the award as well.
I quite like the idea of scope changes and engineering change orders for some US government projects. But I have to admit that Senator Proxmire’s identification of a $600 hammer sold to the US Department of Defense is not interesting.
That 8,000 percent mark up is pretty nifty. Oh, on Amazon soap dispensers cost between $20 and $100. Should the Reuters’ story have mentioned:
- Procurement reform
- Poor financial controls
- Lack of common sense?
Of course not! The trust outfit does not get mired in silly technicalities. And Boeing? That outfit is doing a bang up job.
Stephen E Arnold, November 29, 2024
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