Elmendorf Air Force Base, in Anchorage, Alaska, seen July 1, 2009, estimated spending $9.2 million on paving jobs, but approved $9.4 million in contracts without competition. (AP Photo/Michael Dinneen)From AP:
WASHINGTON — The Defense Department frequently awards no-bid work to small contractors for repairs at military bases under the new economic stimulus law, costing taxpayers millions of dollars more than when businesses compete for the work, according to an Associated Press analysis of 570 such contracts.
The Pentagon saves more than three times as much money when companies compete, the AP analysis showed. Yet more than $242 million in federal contracts — representing more than one-fourth of the military's stimulus contract spending so far — has been awarded under the recovery program through no-bid contracts for repairs and maintenance.
President Barack Obama promised last month to save money through competition.
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My Comment: You just know that there is going to be some corruption somewhere with this type of bidding (or lack of) process.
It may be small potatoes when compared to the entire U.S. Defense Budget .... but it is an excellent symbol that illustrates what is wrong with the entire procurement system.