According to the American Military Times, last year, the US federal government found a way to spend $97 billion in a month, and more than $61 billion of it can be attributed to the Pentagon, which in addition to spending most of the money on weapons and equipment and other supplies, has spent up to $4.6 million on expensive ingredients!
It's not a new phenomenon for federal agencies to find ways to consume large balances, and in the last month of each fiscal year, agencies of the U.S. federal government are struggling to spend the remaining funds in their annual budgets. Because if they don't, these agencies fear they'll lose their share of Congress's budget next year, creating a "spend or lose" spending spree.
Adam Anderzeevsky, founder and CEO of OpenTheBooks, a nonprofit that commits to online publishing all disclosed spending by U.S. governments at all levels, said federal agencies like the Pentagon shouldn't spend money on boring items, but should admit that their offices can be managed for less money. OpenTheBooks, a nonprofit that aims to bring transparency and efficiency to the federal budget, released a report in March detailing spending habits that "either spend or lose" in fiscal 2018.
Andrezyevsky told the Army Times that the U.S. military spends the most so far, and that's not surprising. "Let me be clear [first] that the problem is with Congress and not with the Department of Defense or other departments," he said. "Historically, both parties have tended to turn a blind eye to the Pentagon's waste." It's a shame because both the military and taxpayers are suffering. Projects with lower priority levels are funded, while funding for mission-critical requirements is withheld. ”
Andrezyevsky called the federal government the spending boom "Christmas in September," the worst year his team has tracked so far.
According to the OpenTheBooks report, one of the most prominent Pentagon purchases was the purchase of a leather chair priced at $9341. The Pentagon also bought $32 million worth of batteries, $4.3 million worth of books and brochures, $220 million worth of equipment, $7.6 million worth of fitness equipment and $786.3 million worth of "guns, ammunition and bombs." The Pentagon spent the most on five products: medium-caliber munitions cost $124.3 million, intended modifications cost $92.3 million, gem road series laser-guided bombs cost $75 million, M795 high-explosive TNT cost nearly $54 million, and 40mm ammunition systems cost $2.8 million.
The report also said federal agencies also like to splurge on luxury food before the end of the fiscal year. The Pentagon spent $2.3 million on crabs, including snow crabs, Alaskan king crabs, crab legs and crab claws, and $2.3 million on lobster tails. Federal agencies also spent $293,245 on steak purchases, including rib-eye, top-of-the-line brisket and flank steak.
In addition, the Pentagon invested heavily in public relations and marketing in September, signing a $153.3 million contract. Some of the large spending projects are attributed to major defense contractors. For example, the Pentagon signed an $8.1 billion contract with Lockheed Martin and a $5.1 billion contract with Boeing in September.
Andrezyevsky said some congressional leaders have expressed interest in controlling such year-end spending. He added: "Senators Rand Paul, Mark Warner and Jonny Ernst understand the need for structural reforms in Congress to bring this issue under control. ”
Before the spending boom began, a bipartisan group of senators sent a letter to the U.S. Defense Department Chief Financial Officer on Aug. 29 warning of wasteful spending that could occur at the end of the fiscal year. Lawmakers wrote in August: "According to a recent report, there is only a limited amount of time left in this fiscal year, with as many as 40 percent of their budgets unused in eight of the 10 highest-spending federal agencies." Some observers worry that this year's annual spending boom may be the largest to date. ”
According to OpenTheBooks, of the $97 billion remaining budget in September 2018, spending on contracts increased by 16 percent from fiscal year 2017 and 39 percent from fiscal year 2015.
According to the OpenTheBooks report, federal agencies spent a total of $53 billion in the last week of the fiscal year, which is more than they spent throughout August. Given these strange spending habits, Anderzeevsky said, institutions like the Pentagon should be asked to better explain whether their last-minute purchases are completely fair. "Based on information disclosed by our auditors on OpenTheBooks.com, a significant portion of contract procurement for that fiscal year occurred in the last month," he said. Therefore, it is entirely reasonable to ask the Pentagon to provide an explanation, and the fact that the Pentagon did not pass a full audit will only raise further concerns. (Editor: LWC)