washingtonscene There are big savings to be had else-
where, but defense leaders either choose not to pursue them, put in a half-hearted effort, or give up trying. Let’s start with Pentagon contracting and accounting systems. It’s no secret virtually every weapon
system begun over the past 30 years has ended up costing several times the initial projection. Most end up with years of de- lays, performance failures, expensive re- designs, and smaller production numbers that drive up unit costs astronomically. One huge reason is the Pentagon has no
effective way to track costs and manage its payment systems. For more than a decade, every single
GAO and DoD IG review of these programs has had the same bottom line — billions go down the drain every year because Penta- gon accounting systems are in such disar- ray as to be unauditable. In other words, nobody knows where the money went. The most recent DoD projection ex-
presses hope (hope, mind you) that the systems will be auditable — by FY 2017. Don’t hold your breath. A new report by the Commission on
Wartime Contracting says unaudited contractor bills are piling up so fast the backlog will be $1 trillion (with a “t”) by FY 2016. One big reason is the number of auditors has been cut dramatically. The result: Most of those audits will
never be done. And when Pentagon leaders do decide a
program is a waste of money, there are al- ways plenty of legislators pulling out all the stops to fight any cutback — because de- fense contractors are smart enough to place subcontractors (jobs) in as many states and congressional districts as possible. When the whole system is awash in in- competence and has been allowed to stay that way for decades, there has to be a rea- son. Apparently, government leaders find
it more convenient to complain about the problems than to actually see them fixed. One can only speculate who benefits from the prolonged and brazen mismanage- ment and incompetence. There are plenty of other examples of
waste, including a complex and duplica- tive health care delivery system with three independent service programs, five major contractors, and countless smaller con- tractors fighting for their separate pieces of the budget pie. Multiple studies have concluded a consolidated system could save $400 million a year or more. Outside experts experienced with
private-sector systems say an overhaul and consolidation could save 30 percent or more on the military health care budget, with no loss of care and no changes in benefits. But institutional resistance from vari- ous quarters so far has kept any serious overhaul in the “too hard” pile. So defense leaders misdirect attention
from their contracting and oversight mis- management by pushing people program cuts instead. And they misdirect attention from their health care management failures by seeking to shift more costs on the backs of beneficiaries. Because it’s easier than actually doing their jobs.
Administration O
Rx Plan Impact The most sick and disabled would lose the most.
ne perplexing part of the ad- ministration’s proposal to raise TRICARE pharmacy costs would
change retail copayments to a percentage of DoD’s cost for the drug rather than the current flat-dollar copayment.
DECEMBER 2011 MILITARY OFFICER 31
Are You Doing Your Part? Through the end of October, MOAA mem- bers had sent more than 551,000 messages to Congress through MOAA’s Web Base. But all those messages were sent by a total of only 54,400 people — meaning most members aren’t participating in MOAA’s legislative alerts. Email msc@
moaa.org to sign up for MOAA’s weekly email Legislative Update and periodic alerts.
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