How The Military-Industrial Complex Gets Away With
Murder in Contract After Contract
By Mandy SmithbergerJanuary 21, 2020 "Information
Clearing House" - Call it
a colossal victory for a Pentagon that hasn't won a
war in this century, but not for the rest of us.
Congress only recently passed and the
president approved one of the largest Pentagon
budgets ever. It will surpass spending at the peaks
of both the Korean and Vietnam wars. As last year
ended, as if to highlight the strangeness of all
this, the Washington Post
broke a story about a “confidential trove of
government documents” -- interviews with key figures
involved in the Afghan War by the Office of the
Special Inspector General for Afghanistan
Reconstruction -- revealing the degree to which
senior Pentagon leaders and military commanders
understood that the war was failing. Yet, year after
year, they provided “rosy pronouncements they knew
to be false,” while “hiding unmistakable evidence
that the war had become unwinnable.”
However, as the latest Pentagon budget shows, no
matter the revelations, there will be no reckoning
when it comes to this country’s endless wars or its
military establishment -- not at a moment when
President Donald Trump is
sending yet more U.S. military personnel into
the Middle East and has picked a new fight with
Iran. No less troubling:
how few in either party in Congress are willing
to hold the president and the Pentagon accountable
for runaway defense spending or the poor performance
that has gone with it.
Given the way the Pentagon has sunk taxpayer
dollars into those endless wars, in a more
reasonable world that institution would be overdue
for a comprehensive audit of all its programs and a
reevaluation of its expenditures. (It has, by the
way, never
actually passed an audit.) According to Brown
University’s Costs of War Project, Washington has
already spent at least
$2 trillion on its war in Afghanistan alone and,
as the Post made clear, the corruption,
waste, and failure associated with those
expenditures was (or at least should have been)
mindboggling.
Of course, little of this was news to people who
had read the damning reports released by the Special
Inspector General for Afghanistan Reconstruction in
previous years. They included evidence, for
instance, that somewhere between $10 million and $43
million had been spent constructing a
single gas station in the middle of nowhere,
that $150 million had gone into
luxury private villas for Americans who were
supposed to be helping strengthen Afghanistan’s
economy, and that
tens of millions more were wasted on failed
programs to improve Afghan industries focused on
extracting more of the country’s minerals, oil, and
natural gas reserves.
In the face of all this, rather than curtailing
Pentagon spending, Congress continued to increase
its budget, while also supporting a Department of
Defense
slush fund for war spending to keep the efforts
going. Still, the special inspector general’s
reports did manage to rankle American military
commanders (unable to find successful combat
strategies in Afghanistan) enough to launch what, in
effect, would be a
public-relations war to try to undermine that
watchdog’s findings.
Are You Tired Of
The Lies And
Non-Stop Propaganda?
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All of this, in turn, reflected the “unwarranted
influence” of the military-industrial complex that
President (and former five-star General) Dwight
Eisenhower warned Americans about in his memorable
1961 farewell address. That complex only
continues to thrive and grow almost six decades
later, as contractor profits are endlessly
prioritized over what might be considered the
national security interests of the citizenry.
The
infamous “revolving door” that regularly ushers
senior Pentagon officials into defense-industry
posts and
senior defense-industry figures into key
positions at the Pentagon (and in the
rest of the national security state) just adds
to the endless public-relations offensives that
accompany this country’s forever wars. After all,
the
retired generals and other officials the media
regularly looks to for expertise are often
essentially paid shills for the defense industry.
The lack of public disclosure and media discussion
about such obvious conflicts of interest only
further corrupts public debate on both the wars and
the funding of the military, while giving the arms
industry the biggest seat at the table when
decisions are made on how much to spend on war and
preparations for the same.
Media Analysis Brought to You by the Arms
Industry
That lack of disclosure regarding potential
conflicts of interest recently came into fresh
relief as industry boosters beat the media drums for
war with Iran. Unfortunately, it’s a story we’ve
seen many times before. Back in 2008, for instance,
in a Pulitzer Prize-winning series, the New York
Times
revealed that the Pentagon had launched a
program to cultivate a coterie of
retired-military-officers-turned-pundits in support
of its already disastrous war in Iraq. Seeing such
figures on TV or reading their comments in the
press, the public may have assumed that they were
just speaking their minds. However, the Times
investigation showed that, while widely cited in the
media and regularly featured on the TV news, they
never disclosed that they received special Pentagon
access and that, collectively, they had financial
ties to more than 150 Pentagon contractors.
Given such financial interests, it was nearly
impossible for them to be “objective” when it came
to this country’s failing war in Iraq. After all,
they needed to secure more contracts for their
defense-industry employers. A subsequent analysis by
the
Government Accountability Office found that the
Pentagon’s program raised “legitimate questions”
about how its public propaganda efforts were tied to
the weaponry it bought, highlighting “the
possibility of compromised procurements resulting
from potential competitive advantages” for those who
helped them.
While the program was discontinued that
same year, a similar effort was revealed in 2013
during a debate over whether the U.S. should attack
Bashar al-Assad’s Syrian regime. You probably won’t
be surprised to discover that most of the former
military figures and officials used as analysts at
the time supported action against Syria. A review of
their commentary by the
Public Accountability Initiative found a number
of them also had undisclosed ties to the arms
industry. In fact, of 111 appearances in major media
outlets by 22 commentators, only 13 of them
disclosed any aspect of their potential conflicts of
interest that might lead them to promote war.
The same pattern is now being repeated in the
debate over the Trump administration’s decision to
assassinate by drone Iranian Major General Qassem
Suleimani and other Iran-related issues. While
Suleimani clearly opposed the United States and many
of its national security interests, his killing
risked pushing Washington into another endless war
in the Middle East. And in a distinctly recognizable
pattern,
the Intercept has already found that
the air waves were subsequently flooded by
defense-industry pundits praising the strike.
Unsurprisingly, news of a potential war also
promptly
boosted defense industry stocks. Northrop
Grumman’s, Raytheon’s, and Lockheed Martin’s all
started 2020 with an uptick.
Senator Elizabeth Warren (D-MA) and
Representative Jackie Speier (D-CA) have offered
legislation that could shut down that revolving door
between the major weapons makers and Washington for
good, but it has met concerted resistance from
Pentagon officials and others
still in Congress who stand to benefit from
preserving the system as is. Even if that revolving
door wasn’t shut down, transparency about just who
was going through it would help the public better
understand what former officials and military
commanders are really advocating for when they speak
positively of the necessity for yet another war in
the Middle East.
Costly Weapons (and Well-Paid Lobbyists)
Here’s what we already know about how it all now
works: weapon systems produced by the big defense
firms with all those retired generals, former
administration officials, and one-time congressional
representatives on their boards (or lobbying for or
consulting for them behind the scenes) regularly
come in
overpriced, are often delivered
behind schedule, and repeatedly
fail to have the capabilities advertised. Take,
for instance, the new Ford class aircraft carriers,
produced by Huntington Ingalls Industries, the sort
of ships that have traditionally been used to show
strength globally. In this case, however, the
program’s development has been
stifled by problems with its weapons elevators
and the systems used to launch and recover its
aircraft. Those problems have been costly enough to
send the price for the first of those carriers
soaring to
$13.1 billion. Meanwhile, Lockheed Martin’s F-35
jet fighter, the most expensive weapons system in
Pentagon history, has an
abysmal rate of combat readiness and currently
comes in at more than
$100 million per aircraft.
And yet, somehow, no one ever seems to be
responsible for such programmatic failures and
prices -- certainly not the companies that make them
(or all those retired military commanders sitting on
their boards or working for them). One crucial
reason for this lack of accountability is that key
members of Congress serving on committees that
should be overseeing such spending are often
the top recipients of campaign contributions
from the big weapons makers and their allies. And
just as at the Pentagon, members of those committees
or their staff often later become
lobbyists for those very federal contractors.
With this in mind, the big defense firms
carefully spread their contracts for weapons
production across as many congressional districts as
possible. This practice of “political
engineering,” a term promoted by former
Department of Defense analyst and military reformer
Chuck Spinney, helps those contractors and the
Pentagon buy off members of Congress from both
parties. Take, for example, the Littoral Combat
Ship, a vessel meant to operate close to shore.
Costs for the program
tripled over initial estimates and, according to
Defense News, the Navy is already
considering decommissioning four of the new ships
next year as a cost-saving measure. It’s not the
first time that program has been threatened with the
budget axe. In the past, however,
pork-barrel politics spearheaded by Senators
Tammy Baldwin (D-WI) and Richard Shelby (R-AL), in
whose states those boats were being built, kept the
program afloat.
The Air Force’s new bomber, the B-21, being built
by Northrup Grumman, has been on a similar
trajectory. Despite significant pressure from
then-Senator John McCain (R-AZ), the Air Force
refused in 2017 to make public or agree upon a
contract price for the program. (It was a “cost-plus,”
not a “fixed price” contract, after all.) It did,
however,
release the names of the companies providing
components to the program, ensuring that relevant
congressional representatives would support it, no
matter the predictably spiraling costs to come.
Recent
polling indicates that such pork-barrel politics
isn’t backed by the public, even when they might
benefit from it. Asked whether congressional
representatives should use the Pentagon’s budget to
generate jobs in their districts, 77% of respondents
rejected the notion. Two-thirds favored shifting
such funds to sectors like healthcare,
infrastructure, and clean energy that would, in
fact, create significantly more jobs.
And keep in mind that, in this big-time system of
profiteering, hardware costs, however staggering,
are just a modest part of the equation. The Pentagon
spends about as much on what it calls “services” as
it does on the weaponry itself and those service
contracts are another major source of profits. For
example, it’s estimated that the F-35 program will
cost $1.5 trillion over the lifetime of the plane,
but a
trillion dollars of those costs will be for
support and maintenance of the aircraft.
Increasingly, this means contractors are able to
hold the Pentagon hostage over a weapon’s
lifetime, which means overcharges of just about
every imaginable sort, including for
labor. The Project On Government Oversight
(where I work) has, for instance, been uncovering
overcharges in spare parts since our founding,
including an infamous $435 hammer back in
1983. I’m sad to report that what, in the 1980s,
was a seemingly outrageous
$640 plastic toilet-seat cover for military
airplanes now costs an eye-popping
$10,000. A number of factors help explain such
otherwise unimaginable prices, including the way
contractors often retain intellectual property
rights to many of the systems taxpayers funded to
develop, legal loopholes that make it difficult for
the government to challenge wild charges, and a
system largely beholden to the interests of defense
companies.
The most recent and notorious case may be
TransDigm, a company that has purchased other
companies with a monopoly on providing spare parts
for a number of weapon systems. That, in turn, gave
it power to increase the prices of parts with little
fear of losing business -- once, receiving
9,400% in excess profits for a single half-inch
metal pin. An
investigation by the House Oversight and Reform
Committee found that TransDigm’s employees had been
coached to resist providing cost or pricing
information to the government, lest such overcharges
be challenged.
In one case, for instance, a subsidiary of
TransDigm resisted providing such information until
the government, desperate for parts for weapons to
be used in Iraq and Afghanistan, was forced to
capitulate or risk putting troops’ lives on the
line. TransDigm did later repay the government
$16 million for certain overcharges, but only
after the House Oversight and Reform Committee held
a hearing on the subject that shamed the company. As
it happens, TransDigm’s behavior isn’t an outlier.
It’s typical of many defense-related companies doing
business with the government -- about
20 major industry players, according to a former
Pentagon pricing czar.
A Recipe for Disaster
For too long Congress has largely abdicated its
responsibilities when it comes to holding the
Pentagon accountable. You won't be surprised to
learn that most of the “acquisition
reforms” it’s passed in recent years, which
affect how the Department of Defense buys goods and
services, have placed just about all real
negotiating power in the hands of the big defense
contractors. To add insult to injury, both parties
of Congress continue to vote in near unanimity for
increases in the Pentagon budget, despite 18-plus
years of losing wars, the never-ending gross
mismanagement of weapons programs, and a continued
failure to pass a basic audit. If any other federal
agency (or the contractors it dealt with) had a
similar track record, you can only begin to imagine
the hubbub that would ensue. But not the Pentagon.
Never the Pentagon.
A significantly reduced budget would undoubtedly
increase that institution’s effectiveness by curbing
its urge to throw ever more money at problems.
Instead, an often bought-and-paid-for Congress
continues to enable bad decision-making about what
to buy and how to buy it. And let’s face it, a
Congress that allows endless wars, terrible spending
practices, and multiplying conflicts of interest is,
as the history of the twenty-first century has shown
us, a recipe for disaster.
Mandy Smithberger, a
TomDispatch regular, is the
director of the
Center for Defense Information at the Project On
Government Oversight.
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In the Shadows of the American Century: The Rise and
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World War II.
Copyright 2020 Mandy Smithberger
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