A former top Pentagon official has accused private defense contractors of price gouging the government on weapons and equipment. This price gouging is costing taxpayers billions of dollars.
The Pentagon, the only federal agency that has never successfully passed an audit, seems to have little interest in combating price gouging. As Assad pointed out, the Pentagon cut 130,000 employees whose jobs were to negotiate defense contracts in the 90s, representing over 50 percent of such employees, he said.
“They were convinced that they could rely on the companies to do what was in the best interests of the war fighters and the taxpayers,” Assad said. Instead, the cuts and consolidation led to an era of uninhibited price gouging, as former Air Force Lieutenant General Chris Bogdan, who oversaw many weapons purchases, added. “They are companies that have to survive, make profit. The Department of Defense, on the other hand, wants the best weapon systems it can have as quickly as possible and as inexpensively as possible,” Bogdan said. “Those are opposite ends of the spectrum. ““No, there isn’t,” Bogdan replied.
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