Defense Earmarks--An Anecdote:

A while back, I met someone at a party, an engineer, who told me he worked for a defense contractor that thrives on earmarks. As he described it, so far none of the products he'd worked on was actually being used, and many of them didn't even work. He told me that two things happen after an earmarked project gets underway: either no one pays attention, in which case the company never bothers to finish a working prototype, but gets paid anyway once the paperwork gets filled out, or someone actually monitors the project, in which case a (barely) working, but useless, prototype is built that sits on a shelf somewhere because the Pentagon didn't want it to begin with. Not suprisingly, this engineer wasn't enjoying his job and was actively seeking employment elsewhere.

The big caveat is that this was just "cocktail party" conversation, I can't vouch for the accuracy of the anecdote, and I don't even remember the guy's name, or exactly where I met him. But as criticism earmarks continues to resonate, I can't help thinking about the possibility that we're spending who-knows-how-much money a year on defense earmarks for completely useless products, and that whole companies are thriving on this basis.

Gerg:
Sure sounds consistent with this description of an "incubator for earmarks" from this article:

Republican Rep. John Campbell, an Orange County, Calif., auto dealer and five-year state legislator who is serving his first full year in Congress, is a rare ally of Flake. Campbell began the debate by challenging a $2 million no-bid award to the Sherwin-Williams paint company for a "paint shield" against "microbial threats." The Pentagon did not want this, but Murtha delivered his usual contemptuous retort on earmarks: "We don't apologize for them because we think the members know as much about what goes on their district . . . as [do] the bureaucrats in the Defense Department."

Flake then forced votes on Murtha pet projects — starting with "something called the Concurrent Technologies Corp." in Johnstown. In the brief time at his disposal, Flake tried to explain to an inattentive House how the company survives as an "incubator" for earmarks "just by getting more earmarks." He next challenged a $39 million earmark for the National Drug Intelligence Center in Johnstown, which the Pentagon does not need or want. Murtha was coldly dismissive, denying the reality that these no-bid awards do not allow taxpayers to recapture any benefits that the corporations derive from federal expenditures.
8.13.2007 10:34am
Sk (mail):
I have no doubt that it is true (and I work close to, but not with, defense contracts).
I also have no doubt that academia spends enormous amounts of money on unnecessary and objectively worthless programs (women's studies, sociology, the MLA, etc etc).
I also have no doubt that the art world spends enormous amounts of money on utterly worthless nonsense (who's that British guy who chopped up a cow?).
I also have no doubt that Ford spends enormous amounts of money on research that doesn't pan out.
I also have no doubt that Microsoft spends enormous amounts of money on people, programs, or research that ends up being utterly worthless.
I also have no doubt... oh, you get the idea.

Sk
8.13.2007 10:36am
Kate S (mail):
I work in defense contracting but have no experience with earmarked money. Sk is right. There is a lot of waste in government. A lot of waste occurs through congressional mandates such as the small business programs where we, on average pay out 20 to 40 percent more than would be necessary if it was a non restricted competitive acquisition that was open to all businesses. K
8.13.2007 11:02am
A.C.:
In my experience, even non-earmarked government contracting has its pitfalls. A lot of agencies don't maintain the technical expertise to monitor what their contractors are doing. And contractors take full advantage of that fact. It's revolting.
8.13.2007 11:49am
DanD:
Fortunately I do not work in the earmarked defense field, but I have regular contact with people who do (or did... there is a lot of turnover at one particular firm). This includes a major research university as well as several congressionally-favored firms.

Indeed, several firms and a number of university programs have no productive purpose, they lack either a needed technological advance or an economic comparative advantage. One university program director admits such to me, but contends that there is value in maintaining potential capacity, much as the aerospace firms and shipyards contend. He does not address, however, how grant-writing skills are to be valued when there is no underlying research of value.

The contracting firms, however, do tend include on their staff a high percentage of ordinary citizens who seem to freely choose to exercise their right to contribute to the political figures of their choice.
8.13.2007 11:56am
therut:
I see the same thing with Federal medical research grants. Nothing but thrown away money. You want to be a physician at a teaching University. Well you MUST do "research" and get some paper or another published. So guess how much money is wasted and how many tress are cut down on useless medical so called research. I could go on and on. Check into all the wasted "homeland defense" money. All the little hospitals in rural Arkansas got boats load of money spent on things they will never use. Ah good ole government spending on nothing. But wait. I read in the paper where Senator such and such got so much money for the state of Arkansas for "crap". Makes me ill and the sheep will continue to cry how wonderful for us. Silly sheep. Check who is assosciated and see how many of their political hacks and family members are invoved. The government steals us blind right before our open eyes. All for the common good and the children. Do not even get me started on the wasted workshops teachers have to go to that is also totally wasted money. Alot of silly PC crap that has nothing to do with children learning but it sure gives those preaching to the teachers a good fat pay check.
8.13.2007 12:10pm
Moonage Webdream (mail) (www):
I tried to just trackback this post, but never have luck with that here.

However, what this anecdote tells me is the guy really has no clue how the funding process works. It's not terribly complicated, but he's looking at it purely from his own perspective and not the perspective of the environment he works in. There's no reason he has more or less guarantee he develops something that doesn't work. But, he has to guarantee that there is a need for what he does make that does work. The two are not mutually guaranteed. So yeah, there's a lot of waste, but that waste serves an equally important role in the big scheme of things. So, my bottom line is the guy needs to quit whining so much and spend his money more. I go into a lot more detail in my link up there, just didn't feel like writing a book for a comment.
8.13.2007 12:13pm
WHOI Jacket:
Again, proving that I choose poorly when selecting a career path.
8.13.2007 12:19pm
DavidBernstein (mail):
Moonage, you're missing the point that the Pentagon didn't want, and doesn't need, any of these particular products to begin with. There's plenty of waste in contracts the Pentagon DOES ask for, and some of it is unavaoidable, but that's a different situation. Here, it's just pure make-work.
8.13.2007 12:27pm
Duncan Frissell (mail):
Surprise, surprise socialist production of defense services is inefficient.

If we privatized the DOD, I bet they'd get more done with less.
8.13.2007 12:39pm
Andrew Janssen (mail):
I've seen online statistics to the effect that around 50% of the money earmarked for transportation projects in the last budget cycle remains unspent because many of the states neither want nor need the earmarked projects in question, and they can't shift the funds to the projects they do want or need.
8.13.2007 12:46pm
Justin (mail):
There's a difference between waste and what appears to be an out-and-out handout. The former is serious policy concern, but the latter is serious political and legal concern, and may indicate (or, depending on the applicable law, would by itself be) illegal behavior - either on behalf of the Congressman or the recipient, and due to conspiracy law, probably both in any event.
8.13.2007 12:49pm
Taeyoung (mail):
He told me that two things happen after an earmarked project gets underway: either no one pays attention, in which case the company never bothers to finish a working prototype, but gets paid anyway once the paperwork gets filled out, or someone actually monitors the project, in which case a (barely) working, but useless, prototype is built that sits on a shelf somewhere because the Pentagon didn't want it to begin with.
Didn't Philip K. Dick write a novel with this kind of hook? Military prototype weapons that don't actually work? The Zap Gun I think it was.
8.13.2007 1:08pm
Gideon Kanner (mail):
This problem has nothing to do with defense as such; it's universal. Like Asimov's first law of robotics that trumps all else, the first law of Congresspersonhood requires a transfer of as many dollars as possible from the US Treasury to the Congressperson's home district or state. Nothing else comes close as a motivating factor. And as federal funding has become a pervasive fact of life, and bids fair to expand to subsidize anything and everything you can image (and some things you can't) the problem can only grow worse. Gravina Island bridge anyone? The Big Dig? The Los Angeles Intercontinental Airport? The Los Angeles Belmont Educational Center? The new NY Stock Exchange Building? Etc. etc.
8.13.2007 1:23pm
Richard Aubrey (mail):
I recall Rummy talking to Congress and, getting a load of crap from one of the morons, losing it somewhat, and referring to having to pay for stuff they explicitly said they don't want. That takes up money they could be using to do---oh, maybe uparmor vehicles and so forth.
8.13.2007 1:24pm
Lively:

This problem has nothing to do with defense as such; it's universal. Like Asimov's first law of robotics that trumps all else, the first law of Congresspersonhood requires a transfer of as many dollars as possible from the US Treasury to the Congressperson's home district or state.


We should tax districts by how much pork gets sent back home. If District A gets 7% of revenues then taxpayers in District A pay more federal taxes. It's a way to reign in the free-for-all that's going on now in congress.
8.13.2007 1:43pm
Al Maviva (mail) (www):
I bet if you polled .gov attorneys at DOJ, you would find similar earmark whipsawing on enforcement priorities. Way back in the dark ages, before attorneys had Blackberries grafted onto their left hand upon getting a summer associate position, I worked on projects in a basically dead enforcement area. The enforcement actions had been funded heavily and had a high profile - they were earmarked and had come into existence with great fanfare. After a couple high profile enforcement actions, however, the malefactors quit doing those particluar bad things and moved on to doing some new bad things. Meanwhile, the enforcement office had a budget line, and nobody wanted to be against X (fill in the blank - securities enforcement, environmental enforcement, civil rights enforcement, drug enforcement; my section wasn't unique) so the program basically just lived on forever, and the program attorneys got stuck with trying to make landmark cases out of venial sins, at least on a part time basis. Sure, an Administration can try to kill earmarks, but there is always some troublesome Member who gets some current political benefit out of it, or who makes a particular issue his pet, never mind if the issue's real-life glory days are long gone. An administration can only kill so many Members' pet programs before it's impossible to get the administration's priorities funded. So you're stuck with all these geriatric legal initiatives that just linger forever.

Yep, Microsoft and universities and big companies have inefficiencies. It's just that they aren't necessarily playing with our money when they screw up. After all, you have options; you don't get a choice about paying taxes.
8.13.2007 1:50pm
ronnie dobbs (mail):
I recall hearing back in the 1980s that the A-10 "Warthog" -- the anti-tank aircraft that gained fame as the "Flying Cross of Death" during Gulf War I -- was an earmark project that the Pentagon didn't want (apparently, it would've been a sitting duck in a confrontation with the Soviets). Luckily for us, we never had to fight to Soviets, and the folks we ended up fighting had a much less sophisticated air defense system, so the A-10 served a useful purpose after all. Nonetheless, I can only imagine how many truly useless weapons systems have been created through the magic of earmarking.
8.13.2007 1:55pm
Bruce:
Sounds like Dilbert's company has gone into defense contracting.
8.13.2007 2:24pm
Dave Hardy (mail) (www):
Dunno if the A-10 started as an earmark, but do recall that the Air Force was reluctant. It wanted fast air superiority fighters; aircraft should fight aircraft. Hang bombs on 'em for ground support (which, ahem, is a secondary task at best. Besides, a slow ground support aircraft might allow more precise ground support, but they wanted something that'd get in and out quickly). The slow, heavily armed and armored A-10 matched none of this.

I suspect it'd have held its own in air combat against the Soviets, provided it had enough fighter support to keep missile-firing aircraft at bay. At gun range, it could turn inside any fighter, and you wouldn't want to get tapped by that 30 mm gun.
8.13.2007 2:30pm
Richard Aubrey (mail):
The Army has always wanted dedicated close support aircraft. There's a decades-old doctrine which says the Army does not fly fixed-wing combat aircraft. Hence the use of attack helicopters by the Army. The zoomies--the Warthog pilots excepted--don't care for mud moving.

The jarheads require their pilots go through the Infantry Officers Basic course, to make clear their responsibilities.
8.13.2007 2:39pm
Moonage Webdream (mail) (www):
"Moonage, you're missing the point that the Pentagon didn't want, and doesn't need, any of these particular products to begin with. There's plenty of waste in contracts the Pentagon DOES ask for, and some of it is unavaoidable, but that's a different situation. Here, it's just pure make-work"

David, I don't think I am. You're talking about a worker, not the person who gets the work. The person who gets the work has a different set of criteria than the person who does the work. He apparently doesn't have a clue what all was involved in the big picture. No agency puts out an earmark for something they don't want or need. They put out a request for a bazillion things, some become desirable, some don't. Priorities change, staffs change, and companies have to guess at what someone two years from now would have wanted now. The Warthog served no purpose the military when it was proposed. At the a later point in time, it had a purpose. Now, it may be obsolete. Funding cycles are not on-demand and can sometimes take years to get straightened out. What that guy is working on had a purpose most likely at some point in time. Just because the Pentagon doesn't want it now doesn't mean they never did, or won't in the future. It just strikes me as odd this lowly worker seems to know what the Pentagon wants, Congress wanted, his bosses wanted, etc.. And came to the conclusion that no one ever wanted it, no one ever asked for it, but it will be paid for. My gut instinct is this guy is relying on heresay to make his proclamations to the world. And, in most cases, this type of "information" leads to a lot of rhetoric and very little recourse because once people did into the issue they find out it's not quite the way it was presented. There is waste, but you'll just have to read my post to understand why a lot of people don't consider thay much an issue. The why's of federal waste would go way off-topic I would think by digging into macro-economics. But, the bottom line picture is your anecdotal acquaintance is part of a big picture he doesn't get at all. And if it bums him out that much, probably doesn't need to be a part of it. Fed waste is more than welcomed here. We'd spend it gleefully and with great pride and joy knowing it's stimulating the economy and most likely coming from areas of the country that don't need it nearly as much. So, please, if this process bothers him that much, send his work here. We do need it.
8.13.2007 2:51pm
Smokey:
At least the A-10 was built. About twenty years ago, the P-7 contract was underbid by Lockheed, which promptly went to the Navy and demanded a higher price. That tactic had worked for many years, but this time the Navy said no. Lockheed was almost taken over as a result of that fiasco. The P-7 [the intended successor to the P-3 Orion] was never built.

Since underbidding contracts no longer worked [and Lockheed was by no means the only company that played the cost-overrun game], the rabid hunger for tax money morphed into earmarks. So my question is: Who represents the taxpayers?

I sit on a man's back, choking him and making him carry me, and yet I assure others that I am very sorry for him and wish to ease his lot by all possible means -- except by getting off his back.

~ Leo Tolstoy
8.13.2007 3:00pm
r78:

I also have no doubt that academia spends enormous amounts of money on unnecessary and objectively worthless programs (women's studies, sociology, the MLA, etc etc).

I doubt that if you added up all of those women studies programs that they would amount to tens or hundreds of billions of dollars ever year. Just sayin . . .
8.13.2007 3:12pm
DavidBernstein (mail):
Moon, it's individual Congressmen, not "the agency" that requests earmarks. The very purpose of earmarks is to go around the normal budgeting process and spend money on something that a Congressman, but not an agency, wants to make a priority.
8.13.2007 3:16pm
UintaHiking (mail) (www):
Here is my first hand earmark account.
8.13.2007 3:53pm
RobD (mail) (www):
Regarding the medical industry, a commenter above was disparaging medical research (satirically or not). MDs, especially here at Big Cancer Hospital, do alot of research. And mostly it's 'lets treat cancer X with drug ABC, since it worked with cancer Y'. Or 'what are the effects of drug ABC on cancer X'. That sort of thing. Alot of it is seemingly unnecessary, but that's how medical advances are made; often glacially slow, one inch at a time. Further, the FDA requires such huge drug studies to allow drugs on the market; much of that work is done here. Same thing with drug discovery; only 1 of 10 drugs that enter clinical testing will make it to market. So, yeah, medical research is hugely expensive for all involved, but that's the only way to improve the standard of care. Further, cancer research is a legitamite funding need. Nobody is doing this just to stay employed (well, probably some are) but the main point is that there are lives to be saved; in literally that black-and-white sense.
8.13.2007 3:58pm
Bill Harshaw (mail) (www):
Seems to me I remember reading in the Washington Monthly about some Congressman pushing unmanned drones in the late 80's, early 90's. Although the Israelis had done well with them, the idea of having desk-bound pilots didn't sit well with the flyboys, so the DOD bureaucracy wasn't going to adopt them. I don't know for sure that earmarks played a role, but it was an example of poor judgment by an existing bureaucracy.
8.13.2007 3:59pm
neurodoc:
IIRC, John Murtha was targeted in the Abscam sting operation, so some LEA must have thought him corrupt or corruptible way back then. Murtha's recorded response to the intimations of a bribe offer were not too dissimilar from Reverend Al's response to a sting offer of cocaine, that is to say not such as to convince me that any suspicions of corruption/corruptibility were wholly unwarranted. I will not shed any tears if I wake up to read one morning that Congressmen Murtha and Jefferson are both going off to jail, making it an even balance of 2 Dems and 2 Repubs (Randy Cunningham and Bob Ney) who went there from the Hill. And maybe one day a certain very senior senator from a remote and cold part of this country will join his juniors there.

Q: What would you have if you had 4 congressmen sitting in jail for malfeasance in office?
A: A good start.
8.13.2007 4:43pm
neurodoc:
I see the same thing with Federal medical research grants. Nothing but thrown away money... [therut]
What informs your opinion about this? Did you read or hear about a federally supported medical research project that struck you as a waste of money? Can you relate the details of the many (all?!) federally supported medical research that has amounted to "nothing but thrown away money"? Would zero out the National Institutes of Health's budget, forcing the shutdown of all their intramural and extramural research projects? How about that part of CDC's budget that goes to medical research? Money to the Veterans Administration for medical research? Money for medical research at the Uniformed Services University of the Health Services? The Armed Forces Institute of Pathology? etc.

Do you see all medical research as "thrown away money," perhaps because you think we know all that we will ever know, or at least all that we need to know? Or is it just federally funded medical research that you view that way?
8.13.2007 4:57pm
Anon. E. Mouse (mail):
Contractors ask senators/congressmen for earmarks. "Ask" usually involves campaign contributions, along with a breakdown of money and jobs spent in the appropriate state/district.

The best earmarks are for R&D or even procurement of stuff (equipment) that couldn't be addressed in the budget process (new developments, political barriers, etc.).

Some scrupulous contractors work really hard to identify unfunded DoD needs and try to get earmarks for those projects. Agile companies have developed and fielded equipment really needed by soldiers and airmen in the field and sailors at sea, but missed by the usual channels.

Believe it or not, the Lockheeds and Raytheons (just picking on them because they’re household names), as directed by their DoD customers, sometimes don't realize, or do realize but don't pursue, needed R&D or procurement. It might be a capability gap or simply that that sort of work isn’t profitable for the giants.
(And yes, the Lockheeds and the Raytheons do go after earmarks, and quite successfully.).

Other times, things like entrenched political interests (e.g., Naval Shipyards) make installation of new equipment extremely expensive. For example, a small company can usually retrofit new equipment on a Navy warship for half the cost of the government-run Shipyard...but the "official" budget process favors the Shipyards and the DoD program managers are basically ordered (by Congress) to give the installations to the shipyards. Through the magic of earmarks, more units are installed for less, and a few units are installed at the shipyard. I don't know how the sausage factory on the hill views this. The Lockheeds and Raytheons like to have more units installed, but don’t dare cross the senators and congressmen from states with Naval Shipyards. So they’ll usually give the smaller company a quiet boost on the hill.

On the other hand, unscrupulous contractors, large and small, view earmarks as a continual cash-cow. Once the earmark is in place, the DoD is under intense pressure from the sponsoring member to spend it on the contractor that "bought and paid" for it, regardless of performance or need. Once a senator/congressman is in your pocket, you control that revenue stream into the DoD.

A scrupulous (wise?) contractor will work with the DoD customer to modify the requirements of the program so that they stay within the verbage of the appropriations bill, but results in something the DoD really wants. If you make something especially good on an earmark, the odds are a few scraps of program dollars will come your way the next year. It also helps when the troops/sailors are ecstatic about the quality of your product and pressure the program office to keep you funded.

An unscrupulous contractor simply tells the DoD that the earmark is “his” money, and that he won’t go after more money on that line item the next year unless the DoD plays ball and supports what he wants. Remember, there’s a DoD program manager with a budget line, and all of them want to be in charge of more money, even if it comes with strings. It all comes with strings, anyway -- most of each budget line is spoken for by the Raytheons and Lockheeds before it ever gets to the DoD.

In the end, it isn’t really any different than competing for program dollars (i.e., non-earmarked) money. It is just as dirty or clean, it is just as wasted or effectively used.

I’ve never seen or heard of a fair competition from the DoD. Earmarks are just another way of wiring the system to make sure you get the contract. Good guys do good things, other guys don’t.
8.13.2007 5:46pm
markm (mail):
I recall hearing back in the 1980s that the A-10 "Warthog" -- the anti-tank aircraft that gained fame as the "Flying Cross of Death" during Gulf War I -- was an earmark project that the Pentagon didn't want (apparently, it would've been a sitting duck in a confrontation with the Soviets).

I think it was the Air Force, not the Pentagon, that didn't want the Warthog. The Army certainly did want it - but the AF won't let them get fixed-wing combat aircraft, even for missions the AF hates to fly, and so the Army winds up using helicopters where slow, tough, and ugly airplanes like the Warthog would serve better.

I'm beginning to wonder if separating the AF from the Army was a good idea in the first place - and I served in the AF for nine years. The AF didn't like taking the Warthog in low enough to use the tank-killing cannon that it's built around, so they spent a bundle equipping it with missiles. Then in Gulf War I, a Warthog pilot launched a couple of missiles from a mile up, and they flew true and hot - right into a pair of British APC's. About a dozen of our allies dead because the AF commanders are afraid to send men to fly where they can see what they're shooting at. I emphasize commanders, because the AF pilots I knew had nerve to spare...

As for whether the Warthog was usable against the Soviets, I heard that it was quite survivable in war games against an AF squadron trained to simulate Soviet aircraft and tactics. It can turn on a dime, and that cannon should be effective against airplanes at a range of several miles. Missiles might down the Warthog from greater range, but long range launches give the pilot a good chance to find terrain that blocks the missile. I don't think there's been an air-to-air missile even thought of yet with the intelligence to stay above the trees when a straight line course goes through them, let alone fly over a hill and re-acquire the target on the other side.
8.13.2007 6:27pm
Dingus:
Markm -- Those A-10s that shot the British APCs were cleared to shoot by US Army ground controllers. It didn't help that the Brits had gone deeper than planned, and the Army guys weren't aware they were out there, so they presumed they were Iraqis. The A-10 drivers even asked "Are you sure?" (I heard the audio).
8.13.2007 11:05pm
QuintCarte (mail):
This is the opposite of my experience when I used to be a defense contractor. Admittedly, we were not on earmarked projects, but rather doing contracted, custom work for the DoD.

The amount of review, auditing, paperwork, etc was astounding. We spent so much time proving we really did what we said, really spent what we spent, and that our product actually performed, that it defied all common sense. Not that I object to that kind of review - obviously from this story, we need more of it in some areas. But on my projects, it was far beyond a common sense amount of it.

I say with very little facetiousness that we had to charge 5x what the project could have been done for, in order to prove beyond a shadow of a doubt that we weren't overcharging by 20%.
8.13.2007 11:26pm
Richard Aubrey (mail):
Dingus. I think you're referring to OIF. The incident referred to was in an earlier war. It's a tragic video. Most blue-on-blue results from somebody not knowing where somebody else, or oneself, is.
8.14.2007 12:18am
Howard Fienberg (mail) (www):
As tragically ridiculous as many earmarks in defense appropriations and authorization legislation may be, they are rarely as silly as the some of the budgeted programs. Why does a significant portion of the DOD budget go to disease research programs which, if they must be funded by the federal government, ought to be funded through NIH?

In my Congressional tenure, I worked on a fair number of interesting and seemingly beneficial DOD earmarks, including the development of a synthetic blood substitute, a state-of-the-art metal that is harder than steel but more malleable than most others, a VSTOL plane, and an automated document scanning and translation system. Most of these were desired by the DOD or should have been.

However, I also had to deal with earmark requests that were cool, but unjustifiable. My best example is the watercar -- a convertable sportscar that could pop out skis and function like a motorboat. A sweet toy, but a little hard to justify for the Marines.

Finally, there were the patently insane earmark requests, like the homepathic remedy for smallpox and anthrax.
8.14.2007 11:53am