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Contractors in Afghanistan Didn't Have to Prove Purchases Actually Occurred
More outrageous tales from the State Department car dealership: it turns out that contractor DynCorp didn't have to even prove that it in fact purchased dozens of SUVs for which it charged the government. Try to follow the money on this one.
[O]ne Civilian Police task order [on which DynCorp is the contractor] included a requirement for 68 armored Ford Excursions at a fixed price of $113,064. The [State] Department was billed for 68 "armored vehicles" at a unit cost of $123,327. The property list contained 61 Ford Excursions, of which some were described as armored, others uparmored, and others had no notation of armoring. The costs shown on the property list for these 61 Ford Excursions ranged from $43,990 to $150,000 with nine at $122,190, seven with higher costs, and the remaining 45 with costs of $77,000 and below. Thus, OIG could not conclude that the 68 "armored vehicles" in the vouchers were the 68 armored Ford Excursions specified in the task order.
Let's just assume for a minute that they are. To do the math: 68 Excursions at the State Department contract's fixed unit price works out to $7,688,352. But 68 Excursions at the price DynCorp billed the department is $8,386,236. So that's an overcharge of almost $698,000. Nice.
But what the report's saying is that it has no way of knowing if DynCorp really spent the $8,386,236. It's not easy to work out the numbers given the vague way the report describes the expenses cited on the 61 Excursions DynCorp documented. But nine Excursions at $122,190 is $1,099,710. Add another 45 at $77,000 (the maximum cited here), and that's $3,465,000. Take a conservative estimate of the remaining seven with "higher costs" than the $122,190 -- let's say $122,200, a mere $10 more. That's $855,400. Add it all up and you get in the ballpark of $5,420,110.
And that means the State Department's lax bookkeeping requirements allowed DynCorp to, potentially, pocket around (by my calculation) $2,996,126. Whether that in fact happened is unclear by definition. But what's crystal clear is that State's shoddy accounting is practically an invitation to abuse. Why not just have the State Department open its petty cash drawers and save the inspector-general's office the trouble?
Comments (10)
P J Evans wrote on December 26, 2007 5:46 PM:Gee, if they're going to be handing out money like that, can I get them to give me some? I'll even promise not to lose whatever I spend it on!
Dennis wrote on December 26, 2007 6:11 PM:And when honest government workers question these "purchases", who threatens them with losing their jobs if they don't keep their mouths shut?
Who in State Department is running interference to cover this up?
You don't have to be a blind conservative not to see it, just an ignorant one to deny it.
ocdemocrat wrote on December 26, 2007 7:04 PM:The proper way to describe the potential profit of 3million, is to understand that they profited over 33% on this sale to the State Department. And Repugs say there is no war profiteering; we do it because we love our country. And have I got a bridge for you!!
Ugh wrote on December 26, 2007 8:13 PM:Wait, this is a State Dept. OIG report? You mean the infamous "Cookie"? And it reflects badly on Blackwater, which "Buzzy" was advising? So, where does that leave the CW w.r.t. Cookie's performance as State's OIG?
johnsnottoodistracted wrote on December 26, 2007 9:10 PM:Remember this is only cars you are talking about.
johnnydoughey wrote on December 26, 2007 11:05 PM:Think about the bombs/missles/jets/etc/etc/etc/etc that have no set price or value.
If they can "adjust" the prices on something with "known" value like cars.......
Well hey add some uncle kenenronlay accounting and bingo!! You are a real wh gang member.
Buy another media outlet too for selling your side of the story.
"threatens them with losing their jobs "...
Sorry, but most civil service positions are the most secure jobs in the country. Private employers fire at the rate of nine to one compared to civil servants. That said...
Question: whiich of the parties will be getting back all this fraudulent and/or wasted money our representatives have given away these past six or seven years?
Answer: Neither party will be getting it back for us, because neither party is actually representing "We the People" any longer. They are representing (with conditions, of course) the very folks they are throwing our hardearned money at!!
And what will "We the People" do to solve this travesty?
Most of "We the People" will be sure to reelect these Democrat and Republican crooks because that is what we are used to doing!!
And next year bloggers will be once again be complaining how those clowns are wasting our hard earned money and how we need different people in next time....
hauksdottir wrote on December 27, 2007 7:33 AM:So... a purchase order for 68 armored vehicles results in 61 vehicles: "some" (9) with armor and "some" (7) with upgraded armor, and "some" (45) with spiffy metallic paint jobs.
3/4 of the fleet might not have any armoring at all?
For a third the cost ($43,990 compared to $150,000), the SUVs will be lucky to even get a second coat of paint! Check out the MSRP for Ford Excursions, that price might not include 4WD and anti-rust treatment once you add in delivery costs.
And, most precious... with no serial numbers or sales records, there is no way to prove whether the vehicles were bought new or used or even bought? Real, in service, vehicles could be compared to the contract.
Wasn't that a broken-down SUV or something that was being dragged rather than abandoned when Pat Tillman was murdered? Are vehicles that scarce in the war zones because they were never delivered?
Profits were pocketed, but nothing gets between a war profiteer and an opportunity to scam... and if the contract is 100% profit?
Henry wrote on December 28, 2007 4:55 PM:Things are never going to change.We have lost our government, every department, to corruption and will never retrieve it again. Happy New Year!!!!
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