Watse and Abuse in the Military Spending

Introduction

In order to ensure that contractors supply the government with the goods and services agreed to under the financial terms and programmatic requirements outlined, it is important that the federal government conduct proper oversight of contracts. Good oversight holds contractors accountable; poor oversight often leads to waste, fraud, and abuse of taxpayer dollars. POGO’s Contract Oversight Investigations are aimed at preventing billions of dollars from being wasted and defrauded from the over $530 billion annually spent by the government on goods and services.

I. Goals for 1997 and beyond

Terminate government subsidization of defense corporation mergers.

End other defense corporate welfare programs, notably arms export subsidies.

Ensure that the Administration's contractor-friendly "acquisition reforms" preserve protections against abuse in contracting.

Begin the fundamental reforms required to prevent waste and abuse in military spending.

Halt another Congressional multi-billion dollar, waste-generating increase to the Defense Department's budget request.

II. Background and Congressional Action

The Clinton Administration has trumpeted its efforts at defense "acquisition reform." Defense leaders have stressed the importance of reform as a way to free money for other military spending, rather than as a way to reduce the taxpayer bill for defense. But the Administration has pursued a risky strategy of reform that may not save money at all. The thrust of the Administration's effort is to remove "burdensome" protective regulations and to rely on corporations and Pentagon managers to be more responsible. Unfortunately, the history of defense contracting indicates that most defense corporations have yet to earn the trust the Administration is eager to accord them. If the Administration plans to weaken oversight in the name of efficiency, other initiatives must be introduced to restore adequate protections for the taxpayer....