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Originally Posted by Eric5273
But what has been happening the last 5 years is that the Pentagon has been handing out 75% of their contracts on a no-bid basis. As we have found out after the fact, most of these companies are getting the contracts because they know someone on the inside, and they are vastly overcharging the government for the services they are providing. In almost all of these cases, there are other companies that can do the same job for much less money.
The GAO has investigated this on numerous occasions, but the Justice Department has not prosecuted any of these companies. Instead, in a couple of cases that the media exposed and there was quite a bit of public outrage, they made settlements with both Haliburton & Bechtell to return some of the money they had stolen. But the Pentagon has continued to give no-bid contracts to both of these companies even after they admitted to vastly overcharging the government.
If the government was indeed being run like a business, these two companies would be dropped in a second. But instead, the government is being run like a welfare donor, and these companies are receiving vast amounts of corporate welfare at the taxpayer's expense.
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I agree, there has been overcharging in ALL areas of the government.
But cheapest isn't always the best. Some of my suppliers aren't the cheapest but we still use them because the product is better. That's why we drive BMW's and not a Honda Pilots. Their vendors are charging whatever they "think" they can get away with. The government is lacking the checks & balances to catch everything.
The company I work for isn't always the cheapest but we're the best and that's why we're #1 in our industry.