Tuesday, December 13, 2005

Pentagon Pays $20 For Each 85-Cent Ice Cube Tray

I had to pass along this information from The Whispering Campaign website. It's just one more example of how the government blatantly wastes taxpayer money. [Hat tip for the link to Acoustic Dad's Place]
The Pentagon paid $20 each for plastic ice-cube trays that once cost 85 cents. A supplier was paid more than $81 each for coffee makers that for years were purchased from the manufacturer for $29.

That's because instead of receiving competitive bids or buying directly from manufacturers as it once did, the Pentagon now uses middlemen who set prices. It's the equivalent of shopping for weekly groceries at a convenience store.

The higher prices are the result of a Defense Department purchasing program called prime vendor, which favors a handful of firms.

The Defense Department touts the program as one of its "best practices" and credits it with timely deliveries that have eliminated the need for expensive inventories and warehousing. For purchases under the food prime-vendor program alone, the DLA claimed a savings of $250 million in five years.

But those savings would have happened even without turning to the prime-vendor program, competing suppliers say. Most suppliers for years have offered goods on an as-needed basis so that the military doesn't need to store them in costly warehouses.

One manufacturer who previously sold directly to the government but now sells to the prime vendors said the system doesn't make sense.

Rep. James Clyburn, D-S.C., called for an investigation of the program.

"Can Congress do anything? Yes. Will Congress do anything? No," he said.

This excerpt is from "Pentagon purchases: Millions in markups" by Lauren Markoe and Seth Borenstein. Check it out for yourself and see how responsible the government is when it comes to spending your tax dollars.


Anonymous said...

Uggg that's lovely. Your tax dollars at work! What happened to Republican's always being concious of costs impacting their bottom line?

That's nothing new of course - it's a problem with bureacracies - so I really can't be blaming the Republicans; it's just so much fun!

Kathy said...

You're right about bureacracies being the problem, but it's time for some party to step up to the plate and do something about it.