U.S. Contractor in Iraq Charges Pentagon $900 for $7 Control Switch, Report Finds

[blonde_minx]

A U.S. government contractor in Iraq charged the Pentagon a whopping amount of money for inexpensive items, including $900 for a $7 control switch, according to a new report from a U.S. watchdog.

U.S. Special Inspector General for Iraq Reconstruction Stuart W. Bowen Jr. said review found that Anham, LLC, which is based in suburban Washington, allowed its subcontractors in Iraq to also charge $3,000 for a $100 circuit breaker, and $80 for a piece of plumbing equipment worth $1.41.

As a result, Bowen's inspectors are seeking to review all Anham contracts with the U.S. government in Iraq and Afghanistan, which total about $3.9 billion.

Hassan S. Judeh, the administration director at Anham's headquarters in Vienna, Va., declined to respond to Bowen's examples because he said the company has not seen the report. But Judeh said Anham has a history of providing competitive prices for services, resulting so far in $132 million in savings to the government.

"Anham prides itself on the fact that it watches every penny and strives to always give the government the best cost-benefit in a remarkably hostile war environment," Judeh said in a statement.

A spokesman for the U.S. military didn’t comment on the overcharges but issued a statement regarding the rest of the report, which found that frequent bombings, assassinations and a resurgence in violence by Shiite militias have made Iraq more dangerous now than it was just a year ago.

“We anticipated, and stated many times, that there would be militant and terrorist groups trying to take advantage of this period as U.S. forces prepare to fulfill our commitments under the Security Agreement. These groups attack both Iraqi and U.S. forces,” U.S. military spokesman Jeffrey Buchanan said.

“From our standpoint, Iraq’s security continues to be an important and complex issue and one that is difficult to summarize in short-term trends and figures.”

The findings come during what Bowen called "a summer of uncertainty" in Baghdad over whether American forces will stay past a year-end withdrawal deadline and continue military aid for the unstable nation.

"Iraq remains an extraordinarily dangerous place to work," Bowen concluded in his 172-page quarterly report to Congress and the Obama administration on progress -- and setbacks -- in Iraq. "It is less safe, in my judgment, than 12 months ago."

The report cited the deaths of 15 U.S. soldiers in June, the bloodiest month for the U.S. military in Iraq in two years. Nearly all of them were killed in attacks by Shiite militias bent on forcing out American troops on schedule.

It also noted an increase in rockets launched against the heavily fortified Green Zone in Baghdad, where government offices and foreign embassies are located, as well as constant assassination attempts against Iraqi political leaders, security forces and judges.

Bowen accused the U.S. military of glossing over Iraq's instability, noting a statement in late May by the U.S. military that described Iraq's security trends as "very, very positive" -- but only when compared to 2007, when the country was on the brink of civil war. In contrast, Bowen talked of "the very real fragility" of national security in Iraq today.

If the U.S. military leaves on schedule, the American Embassy in Baghdad will pick up the responsibility of training Iraqi police. Bowen called the job "challenging" for the fewer than 200 advisers who would be based in three sites but tasked with supporting Iraqi police in 10 of Iraq's 18 provinces. There are an estimated 400,000 policemen in Iraq

http://www.foxnews.com/politics/2011/07/30/us-contractor-in-iraq-charges-pentagon-00-for-7-control-switch-report-finds/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+foxnews%2Fpolitics+%28Internal+-+Politics+-+Text%29

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[BJinMontreal]

A U.S. government contractor in Iraq charged the Pentagon a whopping amount of money for inexpensive items, including $900 for a $7 control switch, according to a new report from a U.S. watchdog.

U.S. Special Inspector General for Iraq Reconstruction Stuart W. Bowen Jr. said review found that Anham, LLC, which is based in suburban Washington, allowed its subcontractors in Iraq to also charge $3,000 for a $100 circuit breaker, and $80 for a piece of plumbing equipment worth $1.41.

As a result, Bowen's inspectors are seeking to review all Anham contracts with the U.S. government in Iraq and Afghanistan, which total about $3.9 billion.

Hassan S. Judeh, the administration director at Anham's headquarters in Vienna, Va., declined to respond to Bowen's examples because he said the company has not seen the report. But Judeh said Anham has a history of providing competitive prices for services, resulting so far in $132 million in savings to the government.

"Anham prides itself on the fact that it watches every penny and strives to always give the government the best cost-benefit in a remarkably hostile war environment," Judeh said in a statement.

...

REALLY ?!? How much would they have saved the government if they had ONLY doubled the price of every item they billed?

[minichaser]

If they went over these invoices like they do my tax return things like this wouldn't get by and we wouldn't be so far in debt.

[Black.Sheep]

WOW he charged us $3.9 billion but saved us $132 million. (remember the sesame street song) One of this things is not like the other Maybe he thought no one would notice WE THE PEOPLE were getting ripped off in a time in which the government is crunching every number trying to save every dime before it goes belly up!!!

[a1911handler]

900 for a 7 dollar switch?

Sounds about right to me. I hate to say it, but the amount of money I burn through at work would make ALL of your heads spin. Aviation ain't cheap, and neither is fighting a war.

By no means am I condoning blatant rip offs, but in the community I am in, s**t is EXPENSIVE.

[marksm30]

900 for a 7 dollar switch?

Sounds about right to me. I hate to say it, but the amount of money I burn through at work would make ALL of your heads spin. Aviation ain't cheap, and neither is fighting a war.

By no means am I condoning blatant rip offs, but in the community I am in, s**t is EXPENSIVE.

It is only expensive because the government is stupid enough to pay those ridiculous prices and more than happy to pass that cost on to us by asking for more taxes. Debt crisis? Of course there is. Because in their world, 1+1= 10.

[a1911handler]

The government does pay riduculous prices...

for ridiculous capability. The stuff I see every day is crazy small, hardened against repeated take offs and landings and will function accross all seven continents. Oh yeah it flies against every enemy nation out there trying to one up us. Did I mention it's capability, reliability, and lethality?

You think that's cheap? It's not. And some of the engineering I've seen is crazy. There is some serious brainpower behind solutions to real world air dominance. And do you think there is no pressure to stay out in front? You bet there is. Everyone wants to capture or spy their way into the stuff we fly right now. And it's a daily battle to keep it to opurselves.

I am proud to have worked where I work, and I have little tolerance for generalized comments regarding 1+1=10. Guess what? Staying in front costs real money and real time and real effort. 100% of which the general public does not have exposure to.

Blatant price mongering does not have a place in government contracts, and to combat that there is an avenue for me to call out suppliers who provide me substandard or out of spec parts. Don't think that everyone who works on the government dime is content to have the taxpayers foot the bill day in and day out. There are some of us that see the big picture.

But when you are in the gulf and that E2C has got to fly, the money WILL be spent without a second thought. Because it's aircrew lives I am thinking about, not the debt ceiling.

[randalln]

900 for a 7 dollar switch?

Sounds about right to me. I hate to say it, but the amount of money I burn through at work would make ALL of your heads spin. Aviation ain't cheap, and neither is fighting a war.

By no means am I condoning blatant rip offs, but in the community I am in, s**t is EXPENSIVE.

Tell them about the cost of the plane ride to get it where its going

spacial delivery from Houston $5.00 part becomes $2005.00 at the final destination

someone has to carry the part ..........................thats the cost of blowing up the supply chain

If your 1911 45 needs a trigger I assume its a 45 and not a 9mm version

Right...........

and your on a mountain at 10k feet and the only way to get it is to order it or get shot next time it jams ........................

$500 dollars is cheep

Edited July 31, 2011 by randalln

[Rossenbos]

This is most likely the Control Switch for the RV. Pushing it will give us a rate of 7$

YEAH!!!!!

Guru Rossenbos has spoken. He has seen another mystical message in a press release.

As he has analysed his morning droppings too ( they were outlined in a perfect 7) and meditated long time with two donuts this morning.

Two donuts....forming an 8. Guru Rossenbos ate one bite. 8 - 1 = 7.

Date....

1 bite = first day

two donuts = 8 = August.

[imgesing]

Which is why ROSS PEROT would have whipped our US GOVT into shape. For me it would have been an effective comedy routine to watch. No worse than what we have now!

.

We simply do not run this govt. like a well oiled machine. Too much trust and waste and special intrests and lobbists, etc. The majority of US Americans are not as educated as we would hope. We need our schooling and education level to rise up like CHINA.

We buywhat the advertisement and news tell us and go blindly with the false truths. I sincerely hope we all help wake up our nation and get it back on top. I seriously believe that many politicians and wealthy interests have sold our country for profit to other nations in this world. We should all be living like kings and queens.

I say bring back huge incentives for big companys to stay and keep MADE IN THE USA a proud and quality thing again. EMPLOYEE AMERICAN LABOR HERE IN THE USA!!! Why do we need to talk to someone (in INDIA for example) when something breaks down?

Build up our farm lands and regulate our foods so we dont all eat chemicals. Tighten up the imports and raise taxes on imports to off set the prices across the board. Let''s make the world bow down hard to us and know we are a country of impecable standards again. THIS IS MY BELIEF! I AM A PROUD AMERICAN AND I WANT THIS TO BE HOW WE ALL FEEL AGAIN! NO OTHER COUNTRY SHOULD BE ABLE TO COMPETE WITH US! Dont let any one sell us out. WE NEED TO GET LOUD ABOUT THE ISSUES!!!!

Lastly tighten up our boarders to force all illegal aliens to a screening and provide VISA or US citizenship. If not SHIP THEM OUT OF HERE!!!! OUR COUNTRY SHOULD BE A PRIVELEDGE and ENGLISH our LANGUAGE!

Let's get rid of those who dont abide by our laws and yet live here unlawfully.... I am not saying reject anyone who wants to come and live or be a part of our country. I am saying it should be a process. Anyone who lives here with out a right to do so should be fearful not indignant. THEY HAVE NO RIGHTS like we do if they are not legally here. The diversity of our cultures through out history has made us the richest nation and most diverse too. Those who have come here and worked hard to add to our nation is respected by me. Yet we all live under a controlled society for a common good for all. LAWS MATTER.

If you agree just take note of what I am saying. Maybe tell someone else. Let's spread the word so the pressure is on in our government. WE DONT NEED TO TAKE IT ANY MORE!

PEACE to you my fellow AMERICAN... WE STAND SIDE BY SIDE.

PEACE

Sorry if I blew off some steam, but enough is enough....!!!!!!

[Roadrunner]

I wonder if that $7.00 switch is seven dollars at Home Depot here in the States. Does the report show how much it costs to deliver it to a project in a war zone and how much it costs for the technician to install it. I have found that somethings can be bought cheaper on the local economy, but some others just don't meet the quality standards that most contractors have to meet. Also, most such items would be ordered through CMO by either NSN or Bugseye number and prices would be set by the government and not by the contractor. There are probably some people on here that have a better understanding of the SAP Market than I.

Roadrunner

[The RockStar]

I wonder if that $7.00 switch is seven dollars at Home Depot here in the States. Does the report show how much it costs to deliver it to a project in a war zone and how much it costs for the technician to install it. I have found that somethings can be bought cheaper on the local economy, but some others just don't meet the quality standards that most contractors have to meet. Also, most such items would be ordered through CMO by either NSN or Bugseye number and prices would be set by the government and not by the contractor. There are probably some people on here that have a better understanding of the SAP Market than I.

Roadrunner

HAHAHA now we get the truth Who set the prices .......THE GOV. now you said a mouth full....................

all we do is pull the NSN and order

[PD46]

A U.S. government contractor in Iraq charged the Pentagon a whopping amount of money for inexpensive items, including $900 for a $7 control switch, according to a new report from a U.S. watchdog.

U.S. Special Inspector General for Iraq Reconstruction Stuart W. Bowen Jr. said review found that Anham, LLC, which is based in suburban Washington, allowed its subcontractors in Iraq to also charge $3,000 for a $100 circuit breaker, and $80 for a piece of plumbing equipment worth $1.41.

As a result, Bowen's inspectors are seeking to review all Anham contracts with the U.S. government in Iraq and Afghanistan, which total about $3.9 billion.

Hassan S. Judeh, the administration director at Anham's headquarters in Vienna, Va., declined to respond to Bowen's examples because he said the company has not seen the report. But Judeh said Anham has a history of providing competitive prices for services, resulting so far in $132 million in savings to the government.

"Anham prides itself on the fact that it watches every penny and strives to always give the government the best cost-benefit in a remarkably hostile war environment," Judeh said in a statement.

A spokesman for the U.S. military didn’t comment on the overcharges but issued a statement regarding the rest of the report, which found that frequent bombings, assassinations and a resurgence in violence by Shiite militias have made Iraq more dangerous now than it was just a year ago.

“We anticipated, and stated many times, that there would be militant and terrorist groups trying to take advantage of this period as U.S. forces prepare to fulfill our commitments under the Security Agreement. These groups attack both Iraqi and U.S. forces,” U.S. military spokesman Jeffrey Buchanan said.

“From our standpoint, Iraq’s security continues to be an important and complex issue and one that is difficult to summarize in short-term trends and figures.”

The findings come during what Bowen called "a summer of uncertainty" in Baghdad over whether American forces will stay past a year-end withdrawal deadline and continue military aid for the unstable nation.

"Iraq remains an extraordinarily dangerous place to work," Bowen concluded in his 172-page quarterly report to Congress and the Obama administration on progress -- and setbacks -- in Iraq. "It is less safe, in my judgment, than 12 months ago."

The report cited the deaths of 15 U.S. soldiers in June, the bloodiest month for the U.S. military in Iraq in two years. Nearly all of them were killed in attacks by Shiite militias bent on forcing out American troops on schedule.

It also noted an increase in rockets launched against the heavily fortified Green Zone in Baghdad, where government offices and foreign embassies are located, as well as constant assassination attempts against Iraqi political leaders, security forces and judges.

Bowen accused the U.S. military of glossing over Iraq's instability, noting a statement in late May by the U.S. military that described Iraq's security trends as "very, very positive" -- but only when compared to 2007, when the country was on the brink of civil war. In contrast, Bowen talked of "the very real fragility" of national security in Iraq today.

If the U.S. military leaves on schedule, the American Embassy in Baghdad will pick up the responsibility of training Iraqi police. Bowen called the job "challenging" for the fewer than 200 advisers who would be based in three sites but tasked with supporting Iraqi police in 10 of Iraq's 18 provinces. There are an estimated 400,000 policemen in Iraq

http://www.foxnews.com/politics/2011/07/30/us-contractor-in-iraq-charges-pentagon-00-for-7-control-switch-report-finds/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+foxnews%2Fpolitics+%28Internal+-+Politics+-+Text%29

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Thanks for the post blonde_minx!

Instead of harrassing and threatening the US population with IRS agents followed by US Federal Marshalls; why doesn't our government do their slave tax payers, which is their source of operating funds, a favor and send those IRS agents and US Marshalls in to investigate this kind of corruption instead? All we do every election is rearrange the deck chairs for the two politically corrupt political parties; while the Dumb-ocrats, like Rep. Louise Slaughter of NY, talk about the government paying for everyone to have a pair of dentures and the Repubicans, like US Sen. John Mcain of AZ, talk about the conservative voters being like middle-earth hobbits coming to destroy Mordor on the Potomac.

On a more interesting note, what kind of markup is that on services provided? The $900 charge on the $7 light switch is roughly a 128,000% return on profit; while the $3000 markup for a $100 circuit breaker is a 3000% return on profit, and the $80 markup for a $1.41 piece of plumbing equipment is roughly a 56,000% return on profit.

Folks, we are in the wrong business. All we need to do is get in the government contract business; get a couple of corrput US senators like Prince Harry Reid, Chucky Schumier, Tricky **** Durbin, Chris 'Hissy Fit' Dodd (of the Dodd-Frank crime family), John 'Benedict Arnold' McCain, and Lindsey 'Babyface' Graham on our side and on the company payroll, and we can start racking in the 100,000% returns instead of guessing and gambling on the future of the Iraqi Dinar. HAHA

Edited July 31, 2011 by PD46

[Roadrunner]

The comment by PD46 was that he was in the wrong line of work and should be contracting from the government. Why not apply? There are plenty of positions open. Most of the contractors I know only work 12 hours per day 7 days per week and are on call the other 12 hours, I guess that is not too bad. There are a few right now with the downsizing that are working 14 to 16 hours. The temperature today was 126 degrees at 10:00 this morning, and it probably won’t get above 135 before the end of the day. They usually have 30 minutes for meals and have to grab a “to go box” so they can eat on the job. When you take a 12 hour work day and add 1 hour for two meals that leaves them 11 hours most days. One or two times a week, you have to allow an additional two or three hours to do laundry, because the government will only pay for one washer and one dryer per sixty people. Factor in the fact that you would have to give up your cell phone, cable TV, internet and all the other little amenities that you take for granted (hot and cold water, etc.) and only get to see your families every four months (if the job will allow for the time off). Also you have to consider the benefits like company truck. Some of them actually have air conditioning. Of course you have to let the run for about half an hour before you can tell it is on. And if you are lucky enough to get on a camp with a PX, just think how much you could save on shampoo and toothpaste. Would you like for me to send you a recruiters name and number. I know several at KBR, and a few at Dyncorps and Flour. Maybe they could hook you up with the good life we all enjoy over here. Also if you want, I will send you an article that shows there are more casualties here among civilian contractors than the military. Remember it is a war zone an you are not allowed to have a weapon.

Roadrunner