Federal Gov't Spending: Examples
The Associated Press
Mar. 31, 2002
_The Defense Department paid American Auto Logistics Inc. of Monroe, N.Y., $204 million to transport about 75,000 cars of American military personnel to their new stations around the globe. The company was the only bidder on a 1998 proposal to consolidate its vehicle transportation services. Several companies that previously had Defense Department vehicle transport contracts created American Auto specifically to bid on the new global contract.
Officials acknowledge American Auto was the lone company that expressed an interest in the contract at a pre-bid conference. The company was not required to provide the department with any cost or pricing data to justify its bid.
_The Energy Department paid $1.5 billion to having Westinghouse operate its Savannah River nuclear weapons production facility in South Carolina. The payments were made under a contract that was last offered for competitive bids in 1996, when Westinghouse was the only bidder.
The agency extended the contract for five more years, rather than seek new competitive bids. Westinghouse's fee is based on a percentage of the plant's budget, which is set by Congress.
_The Office of Personnel Management paid US Investigations Services of Annandale, Penn., $115 million to conduct background checks on government employees seeking security clearances. USIS had a sole source contract with OPM from 1996 until 2001, when the business was put up for bids. USIS submitted the only responsive bid. USIS was not required to submit cost and pricing data when it won the contract last year.