Inadequate government supervision of contracts
Name(s):
Squandering of government contracts
Unauthorized expenditure of government funds
Fraudulent charging by government contractors
Incidence
In 1993, it was revealed by federal auditors that White House contractors had been paid for unauthorized, even illegal, expenses, including tickets to sporting events, lavish cruises and excessive salaries for executives. In the 1992 fiscal year, $210 billion, or roughly one-sixth of all government spending, had gone on contracts for goods and services. As the Reagan-Bush governments vastly expanded the use of private contractors, so had the staffs of the federal offices that supervise contracts been cut. It was estimated that billion of dollars had been wasted, and that the problem of fraudulent charging was endemic across all the civilian agencies. One company with a $38 million contract with the Energy Department was found to have spent $3.5 million on unallowable costs like liquor, travel for the spouses of employees and registrations for golf tournaments. Another that cleans up toxic waste sites billed for parties, country club fees and the use of a corporate airplane.
Strategy(ies)
Type
(D) Detailed problems