Summary by James R. Martin, Ph.D., CMA
Professor Emeritus, University of South Florida
Cost Accounting Standards Main |
Government Contracting Main
Various whistleblowers report excessive government spending to the Senate. Some of the items mentioned include the following.
A 10-cup coffeemaker for the C-5 transport plane $7,622.
Aircraft armrests $670.06. Mechanics believe they can be made for $5.
A hydraulic folding ladder $74,000.
A crew chief's seat $13,000.
A rechargeable flashlight $180.
An Airforce general said these prices were reasonable. The flashlight was an emergency lighting system and supposely would operate in extreme conditions. The whistleblower showed the flashlight that was held together by four blobs of silicone and would probably leak under water.
A memorandum by the Navy Audit Service reported an $840,000 Navy contract for a tool kit that was as much as $729,000 in execss.
A former Air Force crew chief testified that at least $1.5 million in new or reparable parts had been cast aside for sale as junk to surplus dealers.
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Related summaries:
Smith, J. 1986. $37 screws, a $7,622 coffee maker, $640 toilet seats: Supplies to out military just won't be oversold. Los Angeles Times (July 30). (Note).