Costs Skyrocket As DHS Runs Up No-Bid Contracts

[sabra]

Source: WP

The project started in 2003 with a $2 million contract to help the new Department of Homeland Security quickly get an intelligence operation up and running.

Over the next year, the cost of the no-bid arrangement with consultant Booz Allen Hamilton soared by millions of dollars per month, as the firm provided analysts, administrators and other contract employees to the department's Information Analysis and Infrastructure Protection offices.

By December 2004, payments to Booz Allen had exceeded $30 million -- 15 times the contract's original value. When department lawyers examined the deal, they found it was "grossly beyond the scope" of the original contract, and they said the arrangement violated government procurement rules. The lawyers advised the department to immediately stop making payments through the contract and allow other companies to compete for the work.

But the competition did not take place for more than a year. During that time, the payments to Booz Allen more than doubled again under a second no-bid arrangement, to $73 million, according to internal documents, e-mail and interviews.

Read more: http://www.washingtonpost.com/wp-dyn/content/article/2007/06/27/AR2007062702988_pf.html

[RedEarth]

1. No surprise.......... but don't tell this to repubs

"The average annual cost of a contract employee is $250,000, almost twice that of a federal employee, according to an estimate recently cited by the Senate Select Committee on Intelligence.'

[kestrel91316]

2. That "privatization of government" thing sure is working out well for you and

your buddies now, isn't it, Bushie??

Hm. I'd like to see if any of his "blind trust" assests are invested in any of the companies getting the no-bid contracts.....

[yardwork]

3. His name is Booz?

[Imagevision]

4. No-bid contracts, didn't Hillary give the nod on this?

[tk2kewl]

5. Homer Simpson for DHS chief!

Homer: Not a bear in sight. The Bear Patrol must be working like a charm!
Lisa: That’s specious reasoning, dad.
Homer: Why thank you, honey.
Lisa: By your logic, I could claim that this rock keeps tigers away.
Homer: Hmm. How does it work?
Lisa: It doesn’t work; it’s just a stupid rock!
Homer: Uh-huh.
Lisa: But I don’t see any tigers around, do you?
Homer: Hmm... Lisa, I want to buy your rock.

[stormymonday]

6. Corporate Dole

Easier than competing in that nasty open market.

Another example of the 'faux' capitalism that now passes for economic orthodoxy.