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Jul 07, 2011



Like you say Michael just business, its seems here you just have two organisations one buying and another selling, gives the impression its irrelevant who they might be.


"After the Defense Department IG released its report, Boeing issued the Army a voluntary refund of $1.6 million for five types of parts, an Army official said."

Congratulations, POGO, you found that lost nickle and ignored the billions of dollars of waste lost due to the DoD's payment of profit on development. The government contractors could not get away with the real fraud without your help.

Michael Sheely

Just business as usual, if you ask me (and of course, no one will)


These huge contractors steal so much that this particular issue is indeed "chump change". The fact that Boeing has the audacity to be this arrogant is incredible and predictable. Fire all of them and start over! nyquil762

carol  Reom

Heck the army doesn't care......it's the tax payer who is the chump and is taken.So we are asked to cut SS ,medicare etc.etc.etc..We drive on lumpy roads and do without city services so the military can have the latest gadgets .These things are not shared to improve our lives until 20 30 year later when they are no longer considered secret.Be great if we quit pushing for wars to distract us and push for peace to stop the suffering.


How many officers retire from the military then go to work for Boeing?


These procurement alleged pricing atrocities amount to chump change.

Look at the Army's Future Combat System which wasted a few billion in this century's first decade. Boeing was the "lead systems integrator." The Army mismanaged the program as it does most programs. In this case, it helped the waste/time lost/lack of useful results in FCS by delegating to Boeing and its team many of the program management functions normally performed by the government. As a result, Boeing and its team wound up performing a (surprising??) amount of the direct work, not just integrating and program management. Funny thing about that. It was not funny to our warfighters that concepts were not proven and nothing was ever produced for the warfighters. A small amount of plans and lessons learned are available to be reused. As Boeing says, "We know why we're here." Maybe that's why Boeing's full-page proto-patriotic adverts. are more numerous than they used to be.

Dan Ward

Nice post, Nick! What a crazy, crazy story... I haven't heard about this anywhere else and really appreciate your work.

Something seriously strange is happening when Army officials resist the idea of getting some $$ back, particularly when the refund is based on a clear IG report.



I found that to be a common attitude with the Army for many years. Contracting officers who wanted to approve progress payments despite knowledge the contractor had been falsifying test and inspection reports, accepted vast quantities of non-conforming components and falsified its finished goods reports in order to obtain unwarranted advances from its bank. Or contract administrators who approved incentive fee payments for a contractor despite knowledge that the contractor was not meeting contractually mandated requirements for FAA certifications. Or when presented with allegations the contactor was supplying non-conforming, critical aircraft parts, accepted the contractor's representation that the defects had been corrected, without conducting ANY verification of its own. And then endeavored to obstruct the matter when investigators began an inquiry.

Vance Jochim

Don't forget, Boeing is the one where a senior official was paying briges to facilitate getting that tanker contract. And, their HQ is in Chicago - hub of US corruption. What more could you expect? One of the problems with Defense programs is that they don't fund oversight systems much, or development of efficient workflow and business control systems, thus this type of thing is continuously happening. Remember, DoD has massive problems with corruption in Iraq reconstruction programs due to understaffed procurement departments, and I think I read they reduced the number of generals who actually have solid administrative experience and skills to oversee administrative systems. As an anti-corruption advisor in Iraq in 2004-2006 (see FiscalRangers DOT com ) I saw the same type of thing where the Army Corps of Engineers was responsible for reconstruction procurement and was massively dis-organized causing millions and millions of ordered supplies to be lost and stored in warehouses because they weren't capable of devising an ad hoc system to ensure ordered items actually were delivered to units that had ordered supplies like generators, medical supplies and equipment, etc. And, remember the DoD still has not been able to issue a clean annual audit unlike many other Federal agencies.

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