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Recklessness Of The Dod During The Reagan Administration

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Procurement is the process of selecting suppliers and signing contracts for the purchase of goods and services. While simple in definition, quite the opposite is true when it comes to execution. When speaking about public and private sectors, they are two entirely different entities. They have different work principles, different functions and responsibilities in the economy, and different limitations to do work. In the case of government acquisition, the leading and primary objective is for public good, not profit. For a private venture, it is profit for the shareholders. A private company has to have profit as the first priority when awarding procurement contracts. Due to this obvious dichotomy, contractors generally either service …show more content…

While operating at such a large budget, there is plenty of times where disgraceful purchases “fall through the cracks”. Most citizens have heard about the “procurement recklessness” of the DoD during the Reagan administration. It was reported that the Pentagon had irresponsibly spent defense money on $400 hammers and $600 toilet seats. The public was outraged. It is very hard to justify increasing defense budgets when the appropriated dollars are apparently wasted. Move to 2003, President Bush’s administration came under attack for apparently losing track of $1 Trillion worth of spending. The GAO reported that the army alone had 56 airplanes, 32 tanks, and 36 Javelin missile command launch-units that could not be accounted for (GAO 2003). When asked to complete an audit, the Pentagon proved unable to do so. The response was to create a system to streamline financial systems. The new program, called Corporate Information Management (CIM) system was implemented at a cost of $20 billion of taxpayer money. Eventually the program was scrapped, after spending roughly $18 billion. Fast forward to 2007, sisters Darlene and Charlene Corley have doing business with the DoD for six years through their company C&D Distributors out of Lexington, South Carolina. Shortly after their first order in 2001, the two sisters found a blemish in the government’s buying system. Any product bought for Iraq or Afghanistan was marked priority and paid for automatically. The Corleys quickly took advantage. If the DoD bought two washers at 19 cents apiece, C&D would charge them $998,798 for shipping. Carefully dodging the $1 million threshold that would have alerted higher purchasing authorities, the sisters scammed the DoD for six years. Eventually, it came to light that the DoD had paid $20.5 million for products that should have only cost $68,000 (Washington

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