Pentagon buries evidence of $125 billion in bureaucratic waste

Pentagon leaders had requested the study to help make their enormous back-office bureaucracy more efficient and reinvest any savings in combat power. But after the project documented far more wasteful spending than expected, senior defense officials moved swiftly to kill it by discrediting and suppressing the results.

The report, issued in January 2015, identified “a clear path” for the Defense Department to save $125 billion over five years. The plan would not have required layoffs of civil servants or reductions in military personnel. Instead, it would have streamlined the bureaucracy through attrition and early retirements, curtailed high-priced contractors and made better use of information technology.

.. their report revealed for the first time that the Pentagon was spending almost a quarter of its $580 billion budget on overhead and core business operations such as accounting, human resources, logistics and property management.

.. The data showed that the Defense Department was paying a staggering number of people — 1,014,000 contractors, civilians and uniformed personnel — to fill back-office jobs far from the front lines. That workforce supports 1.3 million troops on active duty

.. The cost-cutting study could find a receptive audience with President-elect Donald Trump. He has promised a major military buildup and said he would pay for it by “eliminating government waste and budget gimmicks.”

.. Among other options, the savings could have paid a large portion of the bill to rebuild the nation’s aging nuclear arsenal, or the operating expenses for 50 Army brigades.

.. But some Pentagon leaders said they fretted that by spotlighting so much waste, the study would undermine their repeated public assertions that years of budget austerity had left the armed forces starved of funds. Instead of providing more money, they said, they worried Congress and the White House might decide to cut deeper.

.. After the board finished its analysis, however, Work changed his position. In an interview with The Post, he did not dispute the board’s findings about the size or scope of the bureaucracy. But he dismissed the $125 billion savings proposal as “unrealistic”

.. Work said the board fundamentally misunderstood how difficult it is to eliminate federal civil service jobs — members of Congress, he added, love having them in their districts — or to renegotiate defense contracts.

.. Some Defense Business Board members warned that exposing the extent of the problem could have unforeseen consequences.

“You are about to turn on the light in a very dark room,” Kenneth Klepper, the former chief executive of Medco Health Solutions, told Work in the summer of 2014, according to two people familiar with the exchange. “All the crap is going to float to the surface and stink the place up.”

.. “Elements of the culture are masterful at ‘waiting out studies and sponsors,’ with a ‘this too shall pass’ mindset.”

.. he revealed that early findings had determined the average administrative job at the Pentagon was costing taxpayers more than $200,000, including salary and benefits.

..

Former defense secretaries William S. Cohen, Robert M. Gates and Chuck Hagel had launched similar efficiency drives in 1997, 2010 and 2013, respectively. But each of the leaders left the Pentagon before their revisions could take root.

.. “Because we turn over our secretaries and deputy secretaries so often, the bureaucracy just waits things out,” said Dov Zakheim, who served as Pentagon comptroller under President George W. Bush. “You can’t do it at the tail end of an administration. It’s not going to work. Either you leave the starting block with a very clear program, or you’re not going to get it done.”

.. It then broke down how the Defense Department was spending $134 billion a year on business operations — about 50 percent more than McKinsey had guessed at the outset.

.. Almost half of the Pentagon’s back-office personnel — 457,000 full-time employees — were assigned to logistics or supply-chain jobs. That alone exceeded the size of United Parcel Service’s global workforce.

.. Work explained he was worried Congress might see it as an invitation to strip $125 billion from the defense budget and spend it somewhere else.

.. uniformed military leaders were receptive at first. They had long groused that the Pentagon wasted money on a layer of defense bureaucracies — known as the Fourth Estate — that were outside the control of the Army, Air Force and Navy. Military officials often felt those agencies performed duplicative services and oversight.

.. McKinsey consultants had also collected data that exposed how the military services themselves were spending princely sums to hire hordes of defense contractors.

.. The average cost to the Army for each contractor that year: $189,188, including salary, benefits and other expenses

.. On Feb. 6, 2015, board members briefed Frank Kendall III, the Pentagon’s chief weapons-buyer. Kendall’s operations were a major target of the study

.. he went to Work and warned that the findings could “be used as a weapon” against the Pentagon.

.. Worse, the board was unable to secure an audience with Carter, the new defense secretary.

.. Work and other senior officials had already “concluded that the report, while well-intentioned, had limited value.”

.. called the board’s recommendations too ambitious and aggressive. “They, perhaps, underestimated the degree of difficulty we have in doing something that in the commercial sector would seem to be very easy to do.”

.. “If we had a longer timeline, yes, it would be a reasonable approach,” he said. “You might get there eventually.”

.. On June 2, 2015, Navy Secretary Ray Mabus delivered a speech at the American Enterprise Institute, a conservative think tank. He complained that 20 percent of the defense budget went to the Fourth Estate

.. He singled out the Defense Finance and Accounting Service and the Defense Logistics Agency, which together employ about 40,000 people, as egregious examples.

Pentagon rips Benghazi Committee over ‘speculation’

A Defense Department official says the House panel’s repeated demands for information is straining resources.

“[W]hile I understand your stated intent is to conduct the most comprehensive review of the attack and response, Congress has as much of an obligation as the executive branch to use federal resources and taxpayer dollars effectively and efficiently,” the letter reads. “The Department has spent millions of dollars on Benghazi-specific Congressional compliance, including reviews by four other committees, which have diligently reviewed the military’s response in particular.”

Hedger also complained that Defense Department interviewees “have been asked repeatedly to speculate or engage in discussing on the record hypotheticals.”

“This type of questioning poses the risk that your final report may be based on speculation rather than a fact-based analysis of what a military officer did do or could have done given his or her knowledge at the time of the attacks,” he wrote.

Panel Republicans waved off the letter, saying it is “further proof the Benghazi Committee is conducting a thorough, fact-centered investigation.”

Where did ISIS come from? The story starts here.

Although Bremer was a former ambassador, he spoke no Arabic, had no experience with postwar reconstruction or with running a large organization, had never served in the military or the Arab world, and had never even visited Iraq. Those shortcomings did not hinder his candidacy. Perversely, as I would learn from Bremer, they enhanced it.

.. It’s been more than five years since US combat troops left Iraq. It took about that long after Vietnam for the nation to begin wrestling honestly with the forces that had led us into that mistaken war. It’s time we start doing the same with Iraq. And the case of L. Paul Bremer — at once well intentioned, infuriating, and tragic — is the ideal place to anchor this kind of reexamination.

.. Why had Bremer’s lack of expertise in the Middle East made him more attractive to the neoconservatives in the Bush administration?

Wolfowitz, a former academic dean, believed too many of the “Arabist” regional specialists in the State Department had concluded that democracy wasn’t possible in the Middle East. Bremer says Wolfowitz had wanted to make sure he hadn’t been “infected” by that kind of defeatist thinking.

.. Cheney owed his remarkable rise almost entirely to one man, Donald Rumsfeld. He had tapped Cheney to be his replacement when Rumsfeld departed the position to become Ford’s secretary of defense.

.. The shock was over a superpower’s impotence to stop the ransacking of a nation by desperate civilians and brazen thugs.

.. it’s clear the war could also serve as a demonstration project for their own animating philosophies.

For Cheney, it was the importance of untrammeled executive authority.

.. For Rumsfeld, Iraq would give him the chance to make the Pentagon’s generals, whom he saw as trapped in outdated Cold War thinking, see the wisdom of his plan to modernize the military with a smaller, faster, more technologically advanced fighting force.

.. For Wolfowitz, it was the belief that only a bold, military-initiated experiment in democracy could free the Middle East from its decades-long paralysis of despotism and anti-Semitism. Toppling Saddam, the brutal dictator who had gassed his own people, would allow a new democratic Iraq to emerge, one that would be gratefully pro-American, would dutifully make peace with Israel, and would promptly unleash the spread of democracy across the Middle East.

.. During World War II, planning for postwar Germany had begun more than two years before the end of fighting. For the Iraq War, the administration launched General Garner’s postwar planning operation slightly more than two months before the end of combat. For Bremer, the time between his appointment to replace Garner and his arrival in Baghdad had been just two weeks.

“The Soviet occupation of Afghanistan gave us the Taliban. The American occupation of Saudi Arabia gave us bin Laden and Al Qaeda. The Israeli occupation of Lebanon gave us Hezbollah. Let us see what the American occupation of Iraq is going to give us.”

The suspense is over. We now know that the American occupation of Iraq gave us ISIS.

.. AbuKhalil, a professor of political science at California State University, Stanislaus, argues all occupations are fated to fail in the modern era. But he suggests the tipping point for this one came with the selection of Bremer. “They chose the best man to do the worst job,” he says. “They chose a very arrogant person with a very colonial attitude.”

.. After a couple of days of the too-small contingent of US troops in Baghdad idly watching as Iraqi marauders ransacked every ministry building and museum, destroying priceless Mesopotamian artifacts up to 7,000 years old, Donald Rumsfeld held a news conference. He jokily dismissed criticisms about the Pentagon’s planning failures as “henny penny” overreactions and concluded, “Stuff happens.” To proud Iraqis looking for clues about whether the American leaders respected their cradle-of-civilization past and were invested in their future, Rumsfeld’s snickering spoke volumes.

.. While most critics fault Bremer for his orders de-Baathifying the government and disbanding the army, the Pentagon’s war architects blame him for handing over sovereignty near the end of his tenure rather than closer to the start.

.. Bremer says that the darling of the neocons, the brilliant but slippery businessman and Iraqi exile Ahmed Chalabi, was clearly not the right man for the job. This wasn’t just because he had provided intelligence on Saddam’s alleged WMD program that turned out to be dead wrong. Chalabi hadn’t lived in Iraq for decades and had no domestic base of support.

.. Although Bremer has come to be regarded as the sole author of this decree to root out Saddam loyalists from the Iraqi government, that is simply not true. Drafts of the order had been circulating around the Pentagon long before Bremer’s appointment.

.. saying Bremer issued that order practically “before he’d met his first Kurd.”

.. In the end, the deBaathification order is believed to have hoovered up 85,000 to 100,000 Iraqis, including thousands of teachers and mid-level technocrats who were summarily shut out of Iraq’s public sector future.

.. This was a dramatic departure from Jay Garner’s plans to keep the bulk of the Iraqi military intact, putting it to work on reconstruction efforts around the country.

.. At one point, he recalls, White House chief of staff Andy Card took him aside and warned him about maneuvering at the Pentagon: “They’re gaming you. They’re trying to blame you for this whole thing.”

.. “We screwed up,” he says. “The biggest screw-up was Bush took too long to fire Rumsfeld and change the strategy.” Only after the post-Rumsfeld surge in troop strength did things begin to improve. But when I ask him if the war was a mistake, he vigorously shakes his head no.