T-13 #7: Examples of Shamefully Wasted Tax Dollars

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Every wasted tax-dollar is one less dollar for real needs. Congress budgets big money for departments and programs, but the executive branch often oversees spending details -- deciding whether to outsource, with whom, and how to manage the contracts.

Several factors can lead to wasted tax dollars: 1) on the contractors part -- shoddy work, waste, or fraud; and 2) on the government's part -- failure to properly negotiate contracts or to oversee contractors' performance. Below are just thirteen of the hundreds of available examples.

1. Mega-contractor Booz Allen Hamilton reportedly charged us taxpayers twice as much for contract employees ($42 - $383 per hour) than government employees typically earn. Apparently, government staff negotiated the contracts to allow this. Might it be cheaper to hire staff?

2. Abbot Labs settled lawsuits for $382 million after it allegedly offered illegal kickbacks to federal undercover agents to buy the company’s products, then “advised them how to fraudulently bill the government for those items.”

3. C&D Distributors falsely billed us taxpayers $998,798 to ship two 19-cent washers (among other things).

4. PacifiCare Health Systems agreed to pay $87 million to settle allegations that it (and predecessor companies) had inflated insurance claims while contracted to provide government-employee benefits.

5.  Department of Energy: a nuclear waste treatment plant was supposed to cost $4.3 billion and be finished in 2011; due to cost overruns and other problems, it will cost about $12 billion and won't be finished until 2019.

6.  Hybrid Submarine: despite 13 years and $885 million committed, we still don't have one working sub. We can't sue the contractor (Northrup Grumman) for refunds, because Navy officials accepted the flawed product "as is."

7.  Retail pharmacies Wal-Mart (2004) Rite Aid (2004), Eckerd (2002), and Walgreen (1999) settled unrelated lawsuits for a combined $23.4 million after allegedly charging federal healthcare programs full price for partially filled prescriptions.

8.  Expensive middleman: Halliburton subsidiary KBR hired a subcontractor to provide meals for troops in Kuwait: Army auditors found that dealing directly with the subcontractor could save the taxpayers $31 million a year.

9.  U.S. Embassy in Iraq: $592 million committed, yet wiring was dangerously faulty, appliances didn't work, and staff trailers emitted toxic fumes.

10. General Electric (and 2 subcontractors) paid $11.5 million to settle a government suit alleging that GE had sold defective blades for the engines of U.S. military planes and helicopters.

11. Northrup Grumman settled for $80 million government fraud suits alleging: 1) that a subsidiary overcharged the government for research and design work, and 2) that Northrop knowingly sold the Navy unmanned aerial vehicles that had defective parts. 

12. Tenet Healthcare (America's second largest for-profit hospital chain) settled lawsuits for $900 million after allegedly falsely billing Medicare and other federal programs.

13. Hurricane Katrina: after two years and billions spent, New Orleans is still not ready to face a big hurricane. 

Related BN-Politics' Posts

  * Defense Dept. Rewarding Bad Contractor Performance?

  * How the Energy Dept. Incinerated Tax Dollars

  * How the Defense Dept. Flushes Dollars Down Latrine

  * Govt. Contractors: Driving up Healthcare Costs?

  * New Orleans Still Suffering after 2 Years and Billions of Tax Dollars

  * Gov. Contractors: Driving up War's Costs? 

  * Contractors Offering Bribes to Army Personnel?

  * Taxpayers Losing Money to Engorged Contractors

  * Audit Red-Flags Contractor in Iraq

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Comments

[Friday's Child]

I'm sorry but we use Pesos not dollars, however, I think wasting is just similar as yours. Great list.
Thanks for the visit.

[Comedy Plus]

And the list goes on and on. Very well done. Very well indeed. Have a great TT. :)

[Malcolm]

I seem to remember reading about #3 on your list. Wasteful indeed.

[The Gal Herself]

I love knowing this stuff, so thank you. But God, I hate how often it happens!

[Lori]

This info makes me sick...they might as well wipe their a** with it!!

[Sue]

I agree the list is probably endless! Happy TT and thanks for stopping by!

[pussreboots]

And lets not forget our wasted billions in Iraq.

[Thomma Lyn]

It's absolutely appalling, isn't it, the money that is wasted and all the smoke and mirrors and b.s.! A very enlightening list, as always.

Happy TT, and thanks for visiting mine. :)

[WhatWorksForMom]

Okay, I'm anxious to see your list each week because they are so thorough. Interesting!

[Susan Helene Gottfried]

This is scary stuff, you know. And I wish wish wish we could do more to stop it, especially because I was talking to my daughter's kindergarten teacher tonight and found a GOOD use for my tax dollars -- the district is underwriting the cost of the teacher's advanced education which is then being used to help educate my kids.

Why isn't there more of that? Why so many abuses?

*sigh*

[Journeywoman]

SIGH.

I only wish the list was exhaustive.

[Shannon]

After the billions spent on Katrina, New Orleans is still not ready for inhabitants in many areas either. :( Not fun.

[Starrlight]

#13 really really pisses me off. If you get a chance, watch When The Levees Broke.

[Marina]

Depressing. Ugh.

Never ends, does it?

Dare I wish you a Happy Thursday? ;)

[samulli]

Quite a depressing list this. And the most depressing thought is that it is the exact same in my country - probably in most countries. It's only on a bigger scale in america. Just like everything else.

[Xakara]

As bad as the list is, the fact you were able to compile it, is at least a comfort.

We can't fight it if we don't know about it.

I only wish #13 had a solution at hand...

Thanks for another informative Thurday.

~X

[Robin]

$600 MILLION for an embassy building?!? Even with all the necessary security features that's obscene!

[Tink]

We have a TV program that shows these kind of things to make us more aware. It's amazing how much money (Euro's in my case) are wasted...
Thanks for visiting my Maia pictures TT.

[Susan B.]

I hope you give us another history lesson next week, because the present is damned depressing.

[busy]

Disgusting indeed! Have a happy tax free TT!

[30plusteacher]

I wonder what would happen if we ALL simply refuse to pay our taxes....

Thanks for visiting my 13!

[tommiea]

That is a lot of wasted money.

Thanks for visiting my TT..

[Nancy]

It is obscene that our elected officials who are supposed to represent us, allow this to happen.

This must have taken some time to put together. THANKS!

[elementaryhistoryteacher]

Hi!

Thanks for visiting my post on the National Powwow. My students are learning about Native American regions right now and it seemed appropriate for times.

Enjoyed your list of waste. I see lots of waste in education as well, even though many think throwing money at the problem fixes things.

I'm for the flat tax, but I'm not really sure if it will solve the waste...

[Joely]

Just makes me *sick*. Thinking about Katrina, the MN bridge collapse, etc. Sigh. Happy TT.

[J. Lynne]

#13 makes me sick. They all make me ill but as it affects people I know personally and people I know are still living in FEMA trailers or waiting for money from the government or their insurance, it just makes me so angry that that the government continues to drag it's feet -- and worse, the deadline to file all of your federal claims paperwork is fast approaching but some people still haven't heard back from their insurance companies.

And every time we sent money overseas to disaster areas I want to scream because I want to know where our money is for our disaster area that is still not recovered.

[MamaArcher]

Thanks for visiting my TT. Good list you have..if there wasn't so much waste maybe we wouldn't be in such debt! What a concept huh!

[Cindy]

This is so terrifying! Seeing all this money dissapear, and to find that really, we are no further ahead at all. Especially where it comes to New Orleans...wow.

Thank you for stopping by http://apenandfire.blogspot.com/

[Gabriella Hewitt]

9& 13 make me so angry! This is ridiculous. What makes me even angrier is that we as Americans are so complacent and close our eyes to the obvious lack of accountability. All the while people suffer.

Thank you for visiting my TT last week. This week I am thanking my fellow TTer's. Come by and get your thanks!

[Shiloh]

i don't follow the news or politics. Too depressing... and now I remember WHY I don't follow them.

[Lori]

Sad but true. I wonder what life would be like if money weren't squandered like it is.

Happy Thursday?

[L-Squared]

It is appalling how much money is wasted, but I suppose it's good that at least we are aware of it. You can't try to fix a problem you don't know about right? Your lists are always so interesting and educational! Thanks for vsiting mine.

[Joy Renee]

if you add up just the waste and fraud that we know about--in fact just what is listed above! you could establish a cool million dollar trust fund for every single living soul in the country that could cover their lifelong education and medical needs. think of the creativity and energy that could be released into the economy and culture.

I know that if my health issues were addressed I would not be such a drag on my family and could contribute in immeasurable ways to my community.

those who would scream Socialism! Socialism! at such a suggestion don't seem to realize that what the above represents is socialism for the white collar crooks. those criminals and the Government officials who enable them by continuing to give new contracts to them are showing their contempt for the taxpayers who contributed those dollars out of wages which are barely enough to meet their families basic needs.

thanx for visiting my Wretched Wednesday TT. but now you know why i gravitated away from political posts back to story telling. every time I go there my prose devolves into incoherent rants like this. but that's because i am feeling the pain of all the people negatively impacted by the reality those statistics represent. and i know the power of story to impart understanding nearly as profound as living the reality oneself.

[Kendra]

what an interesting TT post! thanks for stopping by my site as well!

[Shonna Brannon]

You are so right on the money on this! Great TT.

[Frances]

Very informative TT.
I will be passing it on.
Thanks for taking the time to visit my 13.
Take care,
Frances

[Frances]

Very informative TT.
I will be passing it on.
Thanks for taking the time to visit my 13.
Take care,
Frances

[goofy girl]

There's so much wasteful spending, it's kind of scary. So much of it on the list seems like it deal with healthcare too!

[MissMeliss]

Excellent post.
Depressing. Frustrating. Maddening.

But excellent post.

[Headbands]

Scary post. You can also add the coast guard boats that have cost hundreds of millions to make and can't even be used on rivers.

[Perri Nelson]

Happy TT and thanks for visiting mine at http://perrinelson.com/2007/8/23/940.aspx.

You were right. I did find this list interesting. Of course, waste fraud and abuse has been going on in government contracting a lot longer than the last 40 years, it's been going on almost as long as there has been a government to contract with!

Worse still, is the entrenched unionism that forces higher contract rates and labor rates and makes it next to impossible to hire and fire in government jobs based on MERIT.

Still worse are the earmarks that the Senate tacks on to every spending bill imaginable. Once upon a time our Senators represented the states and would have been appalled at the power the federal government now has. Now they are elected by the people instead of the state legislatures and they have to "bring home the bacon" to get re-elected.

[Frigga]

WHoooooHooooooo!!!! I say smaller Government, less taxes!!!

Happy TT13 :-)

[Ed]

And the beat goes on. When congressional oversight become a rubber stamp the abuses become more criminal. Maybe it is time for Congress to represent the people who elected them and do their job

Ed
http://edsthread.x10hodting.com

[Kathy]

Don't it just make you mad?!!

[Vixen]

It is simply amazing, the waste. Really sad when there so many needy people/programs out there that are worthy of our hard earned dollars!