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Pentagon Lost Billions, Pennies At a Time

Hugh Pickens writes "MSNBC reports that in 1969, Walter T. Davey, an aeronautical engineer at North American Rockwell, discovered he was being overpaid by roughly 2 cents an hour, or one-third of 1 percent of his pay. Davey submitted the discovery to his superiors and suggested a simple fix. 'It was so simple to correct,' said Davey, a 79-year-old retired Air Force colonel, 'just change a few digits in the coding software.' The Project on Government Oversight, which reviewed Davey's findings last year, estimated the change could save taxpayers $270 million a year. Multiply by 40 years — the length of time since Davey made his discovery — and the figure grows to an astounding $10.8 billion. Legislators ignored Davey's letters, federal auditors deferred to Congress, and lobbyists 'descended on it and tore it into a piece of Swiss cheese' but legislators aren't eager to challenge the powerful defense lobby about a figure that's a relative pittance in the overall defense budget — even if it exceeds $100 million annually. 'A lot of people have taken advantage of the system to reap as much in taxpayer dollars as possible,' says Scott Amey, general counsel for the Project on Government Oversight. 'But when you're going up against the contractor lobby — whether you're an individual across the country or a public interest group or a government employee — it's a tough road.'"

12 of 323 comments (clear)

  1. overpaid? by notgm · · Score: 5, Funny

    he made $6.00 an hour, and he was complaining about being overpaid?

    nice.

    1. Re:overpaid? by sopssa · · Score: 5, Funny

      Well, as a tax payer he probably get fed up paying too much taxes towards his own salary.

    2. Re:overpaid? by Carbonite · · Score: 5, Informative

      His salary was equivalent to about $70,000 today, which isn't too shabby (though hardly "overpaid"). Also, the article mentioned that there was a financial incentive for discovering ways to save money. Davey admitted that he was hoping to get some award from his discovery.

      --
      ich muß mehr Kuhglocke haben
    3. Re:overpaid? by mangu · · Score: 5, Informative

      Your parents did a very good business. After correcting for inflation, those 6000 pounds became 80000, which means your parents got 6.5% / year interest in real value plus free rent for over 40 years.

    4. Re:overpaid? by quenda · · Score: 5, Insightful

      6000 pounds back in 1966. Today, ... 200,000 pounds. ..$6/hour then would be like $20/hour now.

      Nice, only off by an order of magnitude. Try $200. A pity salaries have not increased like house prices.

    5. Re:overpaid? by Arthur+B. · · Score: 5, Interesting

      Both funny and insightful.

      To put it another way, government employees don't pay taxes, they're payed out of taxes. The fact that they fill out taxes is merely an accounting trick.

      --
      \u262D = \u5350
  2. Oblig.... by pHus10n · · Score: 5, Funny

    "Ok! Ok! I must have, I must have put a decimal point in the wrong place or something. Shit! I always do that. I always mess up some mundane detail."

  3. Ironic, really... by fuzzyfuzzyfungus · · Score: 5, Insightful

    In all likelihood, it will be our own military contractors, too politically powerful to reign in, who will eventually destroy our military effectiveness. We can spend as much as we like(and we already do) but, so long as our spending is a mixture of "what Raytheon feels like producing" and "the ultimate weapon against the forces of the evil empire rolling across Europe in alternate-1979" it won't do nearly as much good as we would like.

    I wonder if this is how the Romans felt?

    1. Re:Ironic, really... by bertok · · Score: 5, Interesting

      Also, don't forget that anything major project is managed according to this chart. :-)

      Now the fun part... Try and find the boxes in the diagram where something functional actually gets built!

      Correct link: http://www.dau.mil/pubs/IDA/chart%20front.pdf ... and I have to say: wow.

      This is why military projects start at $billions and go up from there.

  4. Military Contracts!!! by copiedright · · Score: 5, Insightful

    This issue could be considered more of a scapegoat for the horrendous spending and poor budget management of the many poorly managed defense contracts over the last 40 years. Trust me, 10 Billion pales in comparison to what has been directly wasted. Also, 10 Billion dollars may seem a lot, but given its based around 40 years it cuts it down quite a bit.

  5. Re:Michael Bolton.... by sveard · · Score: 5, Funny

    aka Richard Pryor Art

  6. King of the Capitol Hill by RevWaldo · · Score: 5, Funny

    This sounds like a "King of the Hill" episode, writ large.

    "No, Peggy, you don't understand! They're OVERPAYING ME! I'm stealing from the government, I tell you what! And I can't get them to stop! It keeps me up at night, I tell you what!"

    Forty years later: A Colonel shows up at Hank's door.

    - "Mr Hill? We've responded to your letter, and it turns out you were right. We have been overpaying you all this time."
    - (sighs.) "I always knew this day would come." (hold out his wrists) "I'll come along quietly."
    - "No, no, Mr. Hill! You don't understand. We're implementing the fix you suggested. It'll save the government millions of dollars a year. We just wanted to thank you!"
    - "Oh. Huh. Well, thank you sir. But in that case, can I at least give you back the money?"
    - "I beg your pardon?"
    - "Wait here." (Hank goes to his garage, wheels out a 50-gal drum on a hand truck.) "I've been putting the extra pennies in here since 1969, I tell you what. And now I'm ready to return it."
    - (smiles) "No, you go ahead and keep that. We're cool." (leaves)
    - "Alright! I can go to college now!"
    - "Bobby, go to your room!"
    - "I'm 45 years old! You can't make me go to my room!"
    - "Now, mister!"
    - "Aw.."