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Tag Archive: DoD

They Don’t Know How to Spell Transparency at DoD

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In its May issue, Conde Nast's Portfolio.com has an unbelievable story about continued financial bumbling by the U.S. Department of Defense (DoD). Despite spending tens of billions of dollars over the past four years to upgrade its accounting software, the military's business systems are as unreliable as ever. DoD's systems are "so obsolete and error prone" that it doesn't know where large chunks of its $439.3 billion (2007) annual basic budget goes. And that figure doesn't include the vast sums being spent in Iraq and Afghanistan.

According to the report, the agency's accounting is so dysfunctional it's impossible for DoD to comply with an 18-year-old requirement by Congress to audit its books. What results is a system that once payments are authorized and money is transferred, there is no reliable way to trace where it ends up. The Portfolio.com article echoes a February article by The (Raleigh, N.C.) News & Observer that profiled DoD's "labyrinth of arcane and incompatible accounting systems." The News & Observer notes that the accounting problems are not new, and quotes Winslow Wheeler, a project director at the Center for Defense Information, as saying if DoD were a public company, "...it would have gone belly up before World War II."

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How Little Anyone Knows About Government Contracting…and Why It Matters

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Yesterday, the Government Accountability Office (GAO) released a troubling report on the U.S. Defense Department (DoD) hiring of private contractors to assist in its operations in Iraq and Afghanistan. It really illustrates how little we know about government contracting and why the lack of transparency is a problem.

Imagine this. DoD doesn't even know how many private contractors it has on the payroll. AP reports that a senior defense official, in congressional testimony last month, estimated that there are about the same number of private contractors in each of the two war zones as there are American troops, 163,000 in Iraq and 36,500 in Afghanistan. But no one apparently knows for sure. The GAO found that private contractors outnumber DoD employees in some offices, and handle sensitive jobs like writing contracts and awarding fees.

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