Panel urges vendor
program probe Congress members want
answers after The State reported military pays too much for
goods By LAUREN
MARKOE Washington
Bureau
WASHINGTON — A bipartisan group in Congress — including
U.S. Rep. Jim Clyburn, D-Columbia — is demanding an investigation
into charges that the Pentagon pays exorbitantly high prices for
everything from coffee pots to computers.
The group says purchases made through the Pentagon’s prime vendor
program, the subject of an investigation published last month in The
State, wastes billions of taxpayer dollars.
Clyburn said he was particularly upset by prime vendor markups,
given the shortages suffered by American troops in Iraq.
He cited members of a South Carolina National Guard unit who last
year refused to go on a potentially dangerous mission because their
vehicles were not armored.
“We spent $20 for an ice cube tray. How can you justify doing
that when you can’t purchase the materials people need to fight the
war?” he said.
Clyburn and U.S. Sen. Evan Bayh, D-Ind., sent a letter Wednesday
to the Defense Logistics Agency, the arm of the Defense Department
that oversees the prime vendor program, demanding an explanation of
its pricing.
U.S. Rep. Walter Jones, R-N.C., at House Republicans’ weekly
meeting, asked Speaker Dennis Hastert to call on the Armed Services
committee to investigate the Pentagon’s prime vendor program.
In fiscal 2005, the program accounted for $31 billion in military
purchases.
Established a decade ago, the prime vendor program gives a select
group of prime vendors — companies that act as middlemen between
military bases and manufacturers — preference when the military
makes a purchase.
The Pentagon says the program saves money, in that it cuts out
several steps in the supply chain and eliminates the need for
warehousing.
Critics, however, say it allows prime vendors to charge far more
than the competition of the past would allow.
Officials at the Virginia-based Defense Logistics Agency, which
oversees the program, were not available for comment Wednesday
evening.
The State’s investigation examined a sample of 122 food service
items purchased through the prime vendor program and found that the
Pentagon on average paid 20 percent more than it had to.
It paid $81 for coffee pots that for years were bought from the
manufacturer for $29. It paid $20 for a plastic scraper widely
available for $11. It paid $887 for a microwave that can be bought
elsewhere for $690.
“As we talk about cutting programs, and reducing spending, how
can we let the Department of Defense get by with this abuse of
taxpayers’ money?” Jones said. “You can pay 85 cents for an ice cube
tray and the DOD is paying $20.”
“This kind of reckless spending is a perfect example of
government waste,” Bayh said in a statement. “It is especially
inexcusable in light of our current budget situation and our
continued efforts to provide our troops with much-needed equipment
in Iraq. Wasteful spending is bad enough, but during a time of war,
it literally becomes a matter of life and death, and it must be
stopped.”
Reach Markoe at (202) 383-6023 or lmarkoe@krwashington.com |