No, not a loose cannon security organization: Pentagon Paid $998,798 to Ship Two 19-Cent Washers

(Bloomberg) — A small South Carolina parts supplier collected about $20.5 million over six years from the Pentagon for fraudulent shipping costs, including $998,798 for sending two 19-cent washers to an Army base in Texas, U.S. officials said.

The company also billed and was paid $455,009 to ship three machine screws costing $1.31 each to Marines in Habbaniyah, Iraq, and $293,451 to ship an 89-cent split washer to Patrick Air Force Base in Cape Canaveral, Florida, Pentagon records show.

The owners of C&D Distributors in Lexington, South Carolina — twin sisters — exploited a flaw in an automated Defense Department purchasing system: bills for shipping to combat areas or U.S. bases that were labeled “priority” were usually paid automatically, said Cynthia Stroot, a Pentagon investigator.

C&D has been barred from getting government contracts. Ya think?

No Responses to ““Rogue Contractor””

  • Dan:

    So, does the Pentagon (and more importantly John Q. Taxpayer)get it’s money back? Since when is Patrick AFB a war zone? The beaches there are pretty da-n nice!

  • Dfens:

    I hope they nail these guys, but the biggest frauds are those that occur in plain sight and legally. It amazes me that those don’t get more people riled up.

  • Toejam:

    ALERT MURDOC!!!!!!!!!!!!!!!!!!!!!!! You got spamers at 12-O’Clock High!!!!!!! Check the message just above mine.

  • Flanker:

    Hey! Is that program still ongoing? LOL!

  • James:

    I’m surprised that this got caught. Amounts under 10 million are virtually never reviewed unless an audit is in progress. The old saying, ‘a billion here, a billion there, and pretty soon you start talking about real money’ is alive and well. Of course these guys are rank armatures – they actually provided a real product. A true vendor should be able to charge millions and not provide anything of material worth.

  • Dfens:

    Yeah, look at Crusader. Wasn’t that one in the $2 to $4 billion class when it was cancelled? Hell, after spending all that money, you’d think each taxpayer in the US would get a shiny trigger switch or something other than F’ed up the ass from it.


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