It seems like every day I read about how government wastes money so I thought I would record them. Since I began this blog, I have been stunned by the amount of waste, fraud, and mismanagement I have found. I recognize that some government is necessary for any society to exist but without the "profit incentive" that we have in private enterprise, government continues to grow like a cancer and along with it the potential for abuse. If you ever needed a reason to limit government, just read some of the following posts.

Friday, May 4, 2012

Overpriced Helicopter Parts

The Office of Inspector General (OIG) reports that Sikorsky Aircraft Corporation overcharged the Department of Defense (DOD) $11.8 million for spare parts.  Some examples of spare parts purchased for prices higher than what is "fair and reasonable" include:
  • A charge of $284.46 per item for a flush door ring that should have cost $8.37, that resulted in $195,276 in overcharges.
  • A charge of $7,814.48 per item for a rotor that should have cost $1,536.65, that resulted in $686,293 in overcharges.
Moreover, OIG found examples of items that the DOD procured through Sikorsky Aircraft Corporation that were already in the military warehouses, including 34 of the rotors that the Defense Logistics Agency had already purchased at the lower price.

Senator Tom Carper stated that "We have known for years that the Department of Defense is unable to audit its books and is woefully behind in meeting Congress' requirement that it be audit-ready by 2017. Further compounding this significant problem is the fact that the Department of Defense's inventory system is just as dysfunctional as its accounting system, resulting in a minimum of a billion dollars worth of inventory that the Department doesn't need being on order at any given time".
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