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This is the third installment of a Shadow Elite series, investigating the game-changing effects of government contracting on the most vital government functions.

How far does the crisis of government contracting oversight go? Apparently, it extends deep into some of America's most hallowed ground: Arlington National Cemetery.

The Army Inspector General and the Senate Subcommittee on Contracting Oversight this summer have issued scathing reports on mismanagement at Arlington which they say has resulted in hundreds, even thousands, of graves mismarked. Salon broke the story last year, and here are some of the findings confirmed by government investigators.

  • The cemetary OK'ed multi-million dollar IT contracts but didn't have an acquisition strategy.

  • No contracting officer was stationed at the cemetery.

  • A cemetary official served as de facto contracting officer for the technology upgrade, though he was not trained in that role.

  • Contracting officers up the command chain usually just rubber-stamped whichever company cemetery officials recommended.

  • That de facto official was the government's point man on dozens of contracts that Army investigators say wasted more than $5.5 million and came up with no working database to track grave sites.

In the words of subcommittee head Sen. Claire McCaskill (D-Mo.):
We know that nearly every possible problem in contracting occurred, and consequences are appalling....I'm looking forward to talking with those responsible.

Just who is responsible? Of course cemetary management is taking the heavy knocks but the Arlington case is also a symptom of a far bigger, government-wide crisis in the capacity to adequately oversee contract work. Janine studied this as part of her research for her book Shadow Elite, and in a follow-on study (supported by the Ford Foundation), Selling Out Uncle Sam: How the Myth of Small Government Undermines National Security, that's just been released. 

In theory, contracts and contractors are overseen by government employees who would guard against abuse, but there are simply not enough of them to keep up with all the outsourcing.
In a 2008 survey of federal acquisition professionals, one respondent described the perception that contract officers have gone extinct, that they are "....as rare as white Siberian tigers."

That's an overstatement of course but the numbers are not encouraging. The number of civil servants who could potentially oversee contractors fell during the Clinton administration and continued to drop during the Bush administration. The contracting business boomed under Bush, while the "acquisition workforce"--government workers charged with the conceptualization, design, awarding, use, or quality control of contracts and contractors--remained virtually constant. In 2002, each federal acquisition official oversaw the disbursement of an average of $3.5 million in service contracts. In 2006 the average workload expanded to $7 million and, in 2008, to $10.6 million, while also demanding of the workforce increasingly complex contracting skills.

One big area of concern: the Department of Defense, where the number of procurement professionals has been shrinking since the early 1990s, even as the volume of contracts (both the numbers of contracts awarded and the value of these contracts) has risen rapidly. This disproportion puts the government at risk of losing control over mission-related decisions and the decision-making process, the Government Accountability Office has concluded. Government officials are made responsible for not only properly awarding contracts, but also supervising and evaluating the performance of contractors on the job. There is not enough capacity for them to do all this effectively. As the U.S. Comptroller General expressed:

At the same time procurement spending has skyrocketed, fewer acquisition professionals are available to award and--just as importantly--administer contracts. Two important aspects of this issue are the numbers and skills of contracting personnel and DOD's ability to effectively oversee contractor performance.
The Comptroller General concluded that "The acquisition workforce faces serious challenges" in such matters as "size, skills, knowledge, and succession planning."

The issue of oversight is further complicated by the multiple layers of contracting and subcontracting that are endemic to the contracting system. Large contracting projects typically farm out areas of work to multiple subcontractors. While the practice makes sense in terms of assembling a variety of competencies in one project, it further distances government monitoring from the work being done and the ability to assess it.

In sum, when the number of civil servants available to supervise government contracts and contractors proportionately falls, thus decreasing the government's oversight capacity, and when crucial governmental functions are outsourced, government begins to resemble Swiss-cheese--full of holes. The governance landscape becomes vulnerable to personal and corporate agendas and to operations that are less than in the public interest.

Certainly the public interest hasn't been served at Arlington National Cemetary, and in fact a criminal probe has reportedly been launched. But it seems likely that simple, perfectly legal mismanagement and poor oversight was a key culprit here: cemetary officials saw their budget nearly double in less than 10 years, an increasing portion went to contractors, they were not trained to deal with contractors and they did not have a strategy before handing out the deals. This is a disturbingly familiar story in various corners of federal government. The difference here is that faulty oversight has led not just to waste and inefficiency, but real heartbreak for hundreds of families whose loved one or ancestor served their country, and assumed, in the end, that their country would do the same for them. They assumed wrong.

 
 
 

Follow Janine R. Wedel on Twitter: www.twitter.com/profjanine

 
 
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HUFFPOST SUPER USER
Joseph-Ohio
09:51 AM on 08/20/2010
We the people have to ask ourselves a pregnant question:

Why do the MAJORITY of people that make up our "DEMOCRACY" (the American Middle) tolerate and elect Representatives / Government that sells out / destroys OUR livlihoods in favor of foreign interests ?

Then when we see that we do not have to, we should fix it by electing Representatives / Government that nurtures and builds OUR livlihoods over foreign interests.

Sounds simple doesn't it.

I guess it's easier said than done.
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AZreb
equal-opportunity Independent heathen
08:24 AM on 08/20/2010
"contractors"? No, mercenaries in all phases of our government - from Arlington to the military forces. We are seeing the outsourcing of government services in all forms. Now we have the State Department with its own personal army of contractors who will be in Iraq after the majority of our military troops leave.

Time someone takes a hard look at the money trail - follow the greenback road and you will usuallly find a politician at the end of it with his hands out for the dough.
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10:41 PM on 08/19/2010
The Prime Directive of FEMA is not caring for the people, but the continuation of government.

The Prime Directive of every government agency and every contractor is the continuation of funding.
06:05 AM on 08/20/2010
It is a characteristic of fools that they cleave to empty apophthegms and employ them against reason and logic.
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07:58 PM on 08/19/2010
As troops leave, U.S. to double contractors in Iraq

Aug 19, 2010 5:24pm EDT

By Andrew Quinn

WASHINGTON, Aug 19 (Reuters) - With the United States drawing down troops in Iraq, the State Department plans to double the number of private security contractors it uses to ensure the safety of the huge civilian development effort, officials said on Thursday.

State Department spokesman P.J. Crowley said the plan would bring to some 7,000 the total security contractors employed by the government in Iraq, where since the 2003 U.S. invasion private security firms have often been accused of acting above the law.

Crowley said the U.S. military's plan to cut troop numbers to 50,000 by the end of August -- down from 176,000 at the peak of the deployment -- left a security gap contractors would have to fill.

"We will still have our own security needs to make sure that our diplomats and development experts are well protected," Crowley told a news briefing.

"We have very specific plans to increase our security ... as the military is leaving. This will be expensive. this is not a cheap proposition," he said, although he added the costs to the U.S. taxpayer would still be far less than those incurred by the military deployment.

The employment of contractors has caused anger in Iraq, particularly after a U.S. court dismissed charges against Blackwater Worldwide guards accused of killing 14 Iraqi civilians in Baghdad in 2007.

http://www.reuters.com/article/idUSN1988632
07:25 PM on 08/19/2010
Every government in the U.S.-- whether it's a city, county, state, or school district -- has inadequate staffing and expertise to monitor and oversee contracts. They lead to cost overruns, lower quality service and loss of public control. There are many other cases describing these impacts around the country on this website: http://inthepublicinterest.org/.
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HUFFPOST SUPER USER
mikegriffith
Non-partisan Independent
05:54 PM on 08/19/2010
Well, as a contractor myself, allow me to inject a little bit of fact here. When a federal employee messes up, it's virtually impossible to fire him, unless it's a blatant criminal offense. When a contractor messes up, he can be fired on the spot. In the field in which I work, contractors can get things done far more quickly than can our government counterparts. Contracting also makes it easier to downsize a government project when the project is badly over budget or is becoming less necessary. Good luck trying to downsize a federal department that is squandering money or that is becoming less necessary (or even unnecessary).
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07:00 PM on 08/19/2010
unnecessary to who? The multinationals?
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AZreb
equal-opportunity Independent heathen
08:28 AM on 08/20/2010
Gosh - then why wasn't Blackwater fired? Instead there was a change of name to Xe and now it has two contracts (one with the CIA) for over $200 million and Prince now lives in Dubai - no extradition treaty with that country.
HUFFPOST SUPER USER
alumcreek
sorry to see humanity repeating errors ad nauseam
04:51 PM on 08/19/2010
One of the major problems with hiring contractors to set up IT systems is that the older guys in charge are loathe to admit their ignorance and simply nod in agreement to whatever the contractor says.

I worked with one man who said upfront he had no idea what was going on. He asked his son who understood computers and code writing to over see the project. Even then some of the people in charge decided to save money by hiring a company from India to create the datebase. This cost a whole year and $2 million wasted because the uper level management had heard somewhere that significant savings can be had by sending projects overseas.

If you don't understand even teh basic terms used to discuss the software, hire someone who has successfully completed a project like the one you are undertaking.

The VA's first effort at computerizing medical records was a major drag because the low bidder had never had any experience in the field.
04:49 PM on 08/19/2010
Once again I am confused…The term to bid on a contract...what does that mean exactly...when I go to an auction usually the person who bids or offers the most money wins the bid…Is that how winning a bid in the government works???

I’d like to know that, because if it is, I might want to go round me up some money and buy me one of them there contract thingys…might want to supply toilet paper...sounds like easy money to me…
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GravitonX
10^300 bosons could care less.
03:48 PM on 08/19/2010
Government contracting has always been a corrupt enterprise. The fact that you are "America" simply blinds you to that fact.
04:35 PM on 08/19/2010
There are parts of the government that manage their contractors very well. I have personal knowledge, having been part of the National Institutes of Health for a number of years and also having worked for an NIH contractor. Always have the right folks on the government side managing things. But, NIH has the budget to have the right caliber of personnel in the positions of oversight. Might not be the case here. The Arlington staff grossly underestimated their ability to manage such a huge project - or at least the budget indicates it was a pretty big, complex system. They should have done baby steps - going from index cards to a small database to manage the basics, then on up to more sophisticated system. It's not rocket science. And, it could have been done years ago. BUT, I have seen plenty of upper level management who can't grasp the concepts of databases and software systems in the management of information or workflow. It does take someone with the right skill-set to articulate what the needs are and to oversee how that is implemented. Sadly, this group was pretty much left to their own devices. Don't know if they do, but if the DOD has an IT management group that manages all systems, this small division should have been a part of that. In a way, it's DOD's own fault.
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07:01 PM on 08/19/2010
Just look at Iraq, Afghanistan, etc.
03:25 PM on 08/19/2010
Privatizing the Military was the biggest mistake we have made so far (Bush error/era) which filters down to the cemetery which they are buried in.

These trained military men who get contracted out as private road warriors pledge no allegiance to their country only to the company they work for. Their behavior isn't under the Geneva convention but corporate laws. Who is held accountable under such conditions? The Company, the United States, the individual? Too many loop holes to conduct a diplomatic or military exercise in anything from engagement to burying the dead.
There's a reason we have separation of powers in the Government contract as well as the social contract.
We are on the wrong track people!
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07:02 PM on 08/19/2010
No they not when the west pointers get over whelm they can teach at Yale are move to the uae to get away from amerika for awhile like prince, huh?
01:17 PM on 08/19/2010
.
contracting????

simple

save bid review time, costs, and hassle..

hand the job to Halliburton and the like..
no bids, no questions, no audits, no accountability

no problem.
.
04:24 PM on 08/19/2010
Nicely put.
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07:03 PM on 08/19/2010
no accountability...
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HUFFPOST SUPER USER
PhilipTaylor
Legalized Bribery is an Oxymoron - must END
01:14 PM on 08/19/2010
98% of Welfare goes to the RICHEST 0.1% and their CORPORATE PARTNERS!

This Hemorrhage MUST STOP!
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HUFFPOST SUPER USER
eljefefx
04:31 PM on 08/19/2010
Where the hell do you come up with this?
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HUFFPOST SUPER USER
PhilipTaylor
Legalized Bribery is an Oxymoron - must END
05:23 PM on 08/19/2010
THE WELFARE TO THE RICHEST 1% AND CORPORATE CR00KS CONTINUES UNABATED!

98% OF WELFARE GOES TO THE RICHEST 1% AND BIG CORPORATIONS:

$23.7 TRILLION TO WALL STREET
WARS = WELFARE TO THE RICH
WELFARE TO BIG 01L
WELFARE TO BIG PHARMA
WELFARE TO RICH - 16.1% TAX RATE - LOWEST IN CIVILIZED/INDUSTRIALIZED WORLD
WELFARE TO BIG INSUARANCE - Health Care NON-REFORM gives 30 Million Government paid customers to them
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HUFFPOST SUPER USER
PhilipTaylor
Legalized Bribery is an Oxymoron - must END
05:23 PM on 08/19/2010
Better known as BIG CORPORATE WELFARE = 98% of ALL WELFARE!

1. WAR - ENRICH THE RICH - $1 Trillion in Direct Funding and $3 Trillion in Indirect Funding. LOW INCOME SOLDIERS GET PAID FOR THE HARD WORK THEY DO AT ALMOST MINIMUM WAGE! WHILE CONTRACTORS RIP-OFF THE TAXPAYER!

2. $23.7 Trillion in Welfare to Wall Street

3. Big Pharma gets Half a $Trillion in BUSH Giveaways - BUSH MEDICARE WELFARE DRUG BILL FOR BIG PHARMA!

4. LOWEST EFFECTIVE TAX RATE (16.1%) for RICH in the CIVILIZED WORLD! Effective Tax Rate for TOP 1% is 16.1% - MOST USE CAP GAINS AND EVEN WITH THAT MANY RICH OFF-SHORE THEIR INCOME!

5. BIG 01L SUBSIDIES

6. Welfare to INSURANCE COMPANIES - 30,000,000+ MORE Government Paid for CLIENTS. BUSH ALLOWED THE OUT OF CONTROL RIP-OFFS OF THE INSURANCE

7. Welfare to MILITARY CONTRACTORS OVERCHARGING FOR SUPPLIES+SERVICES + Wasteful CONSTRUCTION PROJECTS -- $40 FOR A SOLDIER'S BREAKFAST + $500 for a GALLON of GAS from BP +$100 for a Bag of LAUNDRY!
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HUFFPOST SUPER USER
Robert Cantor
I am a human being descended from a small group of
04:31 PM on 08/19/2010
public money funneled to private pockets
01:10 PM on 08/19/2010
While corruption and abuse of the contracting process is certainly a crucial problem, the characterization of the smaller government movement as a counterproductive influence is unsupported. The outsourcing solution is a unholy compromise between entrenched government and corporate interests.
The outsourcing solution is not the preeminent solution of smaller government proponents. The true smaller government movement is opposed to government as the default implementer of policy directives. It is this philosophy of government as the primary executor of the public interest that is the heart of the problem.
Yes, the scandal at Arlington is bad. But it is just a minor peripheral symptom of the major disease of the military industrial complex. The much more significant issue is our unaffordable imperialist ambitions.
Tax and spend is just plain bad. The minutia of the spending details is a misdirection.
04:27 PM on 08/19/2010
I am not sure I follow you.

" The true smaller government movement is opposed to government as the default implementer of policy directives."

Just who is it you would have to implement policy directives? I would suppose following your logic government shouldn't be setting policy?
05:09 PM on 08/19/2010
Government should not be thought of as the first place to go to solve a problem. Those who are affected must organize to take ownership of their own problems.
If I walk to work, why should I pay taxes to subsidize Mideast oil with aircraft carriers?
If the business model of Exxon can't support the security or insurance on their property, then we should not be using that oil.
If I rent a house, why should I subsidize home owners with tax policy and Fannie and Freddie?
If I am a saver why should the rate I receive subsidize the banking system through Fed policy?
Why do we subsidize corn farming? White pine tree growing or anthing else?
All this is misguided with unintended consequences worse than the initial problem government was trying to sole.
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07:07 PM on 08/19/2010
government isnot setting policy here...you know this. certain aspects of our government policies are bought and paid for before the gavel strikes....like the healthcare arrangement.
jhNY
Mercy.
01:01 PM on 08/19/2010
Things work precisely the way they do because that's what benefits the politically-wired. Underfunding has always been the pol's fallback position-- no need to rescind the program or the employment category, just cease to fund. So we have inspection duties on the books, but no inspectors to do the inspecting-- in a great many categories of government oversight. All this happens by design. First: let contracts without proper vetting or competiton, then underfund overseers of contract performance, then howl if caught that the process proves the government cannot work because after all, it's the government. Once the people are convinced the government can't perform, it's a small step indeed to advocate no more taxes, as all taxes are a waste of the people's money. This is the cornerstone and bedrock of Republican activity since Ronaldus Maximus, abetted as per usual by compliant centrist and Blue Dog pols of nominally Democratic persuasion. And it contributed mightily to our real estate and market debacles of late. And it will continue to happen, perhaps even faster and in more places, because the privatizing impulse is alive and well, as is our tendency to underfund regulators.

If I remember right in 2005 it was estimated that all the taxes collected by the IRS from citizens making $100,000 a year or less went to pay off the cost of paying for privatized government services and contracts. The number of those services and contracts provided and held by the privateers of privatization is larger today.
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HUFFPOST COMMUNITY MODERATOR
motoGpifupleez
watching with amusement
12:39 PM on 08/19/2010
The game is rigged. The corporations can always buy one faction of the poor to fight the rest of the poor for them.

These kinds of things never change.

If by some miracle the populous does arise, the corporations will find it's weakest link, pay them off, and gut it from the inside. There is ALWAYS a weakest link and they ALWAYS betray their fellows.
Always.