I have recently completed an online government training course that I am required to take for an upcoming assignment. While taking the course and clicking the links for associated information, I stumbled upon a fascinating spreadsheet published by our very own government on contractors and "top dollars" paid out in 2008. The results shouldn't have surprised me at all (and didn't), but I know there are a lot of people out there who don't have access or the ability to research or the time to connect the dots, so I've done some of it here.
As we all know, KBR has gotten a tremendous amount of bad PR for their role as the US Army's "private army" for many years. From overseeing faulty electrical wiring that shocked soldiers/contractors to sexual assault of female employees, they've been everyone's favorite bad guys to call out in a still-escalating and increasingly unpopular war. But today, boys and girls, we're going to broaden our awareness and look at some players who leave KBR in the dust.
You may not have realized that there are at least 3 other companies out there who make substantially more off the government (and thus, you and I since we're the ones paying taxes) than KBR. I'm only calling out 3 here in the interest of time.
In 2008, these guys made this much money off the government/us:
Lockheed Martin - $99,143,578,144.77
The Boeing Company - $68,274,856,849.29
Northrop Grumman - $61,656,446,770.83
KBR - $17,973,307,533.48
What do you remember hearing about the first three? Probably not as much as you heard about KBR.
But let's look at what the companies are doing for the government, and us as taxpayers.
You already know that KBR has been overseas setting up base camps for the military, running laundries, building roads, organizing mail service, that sort of thing. Their LOGCAP contracts (Logistics Civilian Augmentation Program) have been going on for at least a couple of decades. Overall, they work for 4 main government "groups":
|
KBR |
Sector Total |
Sector %age |
Ranking (out of 100) |
|
Fed Govt-wide |
$5,995,025,350.74 |
1.1467% |
10 |
|
State Dept (in joint venture) |
$12,709,153.07 |
0.2313% |
56 |
|
Army |
$5,968,483,129.03 |
3.8324% |
4 |
|
DOD |
$5,997,089,900.64 |
1.5634% |
10 |
|
Total $ |
$17,973,307,533.48 |
|
|
Here's what I found interesting: out of the 39 different government groups tracked for federal contracting dollars, Lockheed works in 32 of them, Northrop works with 28, and Boeing works with 16. No wonder their total 2008 dollars are 5, 3, and almost 4 times, respectively, as much as KBR's.
Who's watching all of this for us, the taxpayers?
Some might say that the aerospace and defense projects that these 3 work on are considerably more costly than running a laundry at a base camp. I would counter with "but did you also know that Lockheed works with the following government groups":
Fed govt-wide, Commerce, Justice, Labor, Navy, State, Treasury, Army, GSA, Air Force, EPA, Transportation, Homeland Security, Health & Human Svcs, NASA, HUD, Energy, Education, DOD, Tricare Management, Defense Threat Reduction, DCMA, Defense Microelectronics, US Transcom, DARPA, Defense Information, Defense Logistics, Defense Finance, DEA, Washington HQ, Missile Defense, and US Special Ops.
I was surprised to see Tricare Management on the list for Lockheed. I had no idea that an aerospace defense company was in the health insurance management business. Although, if I've learned nothing else over the past year, I've learned how much money there is to be made in the health insurance industry! (For those that don't know, Tricare is the revised name for CHAMPUS, the Civilian Health and Medical Program of the Uniformed Services.) Of course, I also never thought about them working for the Commerce, Justice, Labor, HUD, HHS, Energy, Education, etc. departments either.
For the record, Boeing works with Fed Govt-wide, Navy, Army, Air Force, Homeland Security, NASA, Energy, DOD, Defense Threat Reduction, DCMA, Defense Microelectronics, US Transcom, DARPA, Defense Logistics, Missile Defense, and US Special Ops.
Northrop works with Fed Govt-wide, Interior, Justice, Navy, State, Treasury, Army, VA, GSA, Air Force, Transportation, Homeland Security, H&HS, NASA, Energy, DOD, Defense Threat Reduction, DCMA, Defense Microelectronics, US Transcom, DARPA, Defense Information, Defense Logistics, Defense Finance, Defense Media, Washington HQ, Missile Defense, and US Special Ops.
I think $229+ BILLION for the top 3 is a lot of money. It's about 25% of the total $919 BILLION spent by all 39 government departments/groups for 2008. This is almost a TRILLION dollars!
Haven't we heard some people griping about the deficit increasing by a trillion dollars lately because the American people are interested in something as absurd as HEALTHCARE and a public option or something like that? What morons we are. The public has no options, ever.
And I did a little more research.
Senator Inouye (HI) is Chair of the Senate Appropriations Committee. His top campaign contributor in 2008 was ... wait for it ... Lockheed Martin. (Boeing was #3.) Now, that is not to say that others on the committee didn't receive similar contributions from other groups, but doesn't it look a little convenient / fishy / like a conflict of interest / like something unpleasant being shoved up our rear ends, again? For the record, there are 17 other members of the Defense Appropriations Subcommittee. Four of eleven Dems and three of eight Repubs get campaign $ from defense companies--about equal percentages. (www.votesmart.org)
What does any of this mean?
It means we need to pay attention to what's going on right before our very eyes.
The companies who stand to profit the most from an ongoing war are the ones financing the campaigns of the Defense appropriations decision-makers in Congress and thus ensuring that profits from said wars continue.
I don't know about you, but I'm tired of being made a fool of by the very people who are supposed to represent me and protect my interests.
Perhaps I'd matter more if I had "Lockheed" tattooed on my ass.







Voice, from some of my contacts going way back when I was in business, I knew that. They also have companies in home security and insurance.
:O) ain't that the truth.
9 more hours of 2009
Ending this year is, with me, just fine
The whole f*ing decade really blows
Thanks Bush and Cheney for all of our woes.
Bernie Madoff and the Wall Street bunch
Made sure we'd all be eatin' a brown bag lunch
A black man president, history in the making
I'll bet Obama wonders "What was I thinking?"
God bless us all in 2010. Oh heck,
Except Cheney, McConnell, Limbaugh and Beck
Sorry, I didn't. That is one of my shortcomings, song lyrics. I do better with "movie quotes".
I would never have thought that MY 2009 would end better than Tiger Woods' 2009. But it did.
Headin' out myself now. Check ya' in 2010.
You didn’t recognize that line? I know you’re old enough to remember this.
http://www.youtube.com/watch?v=9HVACPv_KFw
The U.S Marines need a few good men
But several thousand would be better, then multiply by ten
"And don't forget the Navy", he quips
Sailors need food and some really big ships
The Air Force requires special supplies
Oxygen to breath, Bombs that explode and airplanes that fly
There’s plenty big money to be made,
Supplying the army with the tools of the trade.
$10 Billion is not what it used to be. $6 Billion for the CEO, CFO and COO. $4 Billion for the other senior executives. Nothing left for the rank and file.
and furthermore, Lockheed bragged that they had a wonderful year of 10 billion in revenue/profits? A couple days later my contract received a notice that due to harsh economic conditions no one in the company would receive raises this year. Happy New Yearrrrr.
Several I know, even take credit cards.
I think we all agree that MOST of our legislators have a price, just no bar code.
Totally agree!
And btw, a Philly girl wishes her Eagles to win over the Cowboys.
It's hard to tell right now whether Dick Cheney, Sarah Palin or Rush Limbaugh is the real leader of the GOP. My guess is that Cheney has more institutional clout than the other two. But clearly he has used his many appointed and elective positions in government for his own personal financial gain. I recall well the 2000 VP debate he had with slimeball Joe Liebermann, in which Cheney bragged about having worked in the private sector. Yes, that was true, but in a part of the private sector heavily financed by tax dollars. Liebermann was too much of a Republican at the time of the debate to point that little detail out to the American people.
Members of Congress face enormous financial stress in the constant re-election efforts. The amount of money they have to raise daily is staggering. Having the guaranteed support of major corporations like Lockheed, Boeing, Northrop and KBR lessens their burden. I'm sure many members of Congress hold the principled view that they are not actually whores. Most Americans, even this Democrat, probably disagree.
Carol, as usual, is right. And, allow me to say, particularly articulate AND CONCISE this time.
Delezzia. It goes without saying that anytime somebody says something negative about that dick Cheney, I am in hearty agreement. I really dislike that guy. In fact, I'm a pretty happy-go-lucky dude. You all know that. I only have three people on my "wish" list for aortic aneurisms...they are Charles Manson, Dick Cheney, and Rush Limbaugh.
Is (that dick) Cheney making money off these wars? Is SMU looking for loopholes in their contract to build the Bush Library?
Voice, great post. I keep seeing "Dick" head Cheyney... someone made a lot of money and secretly retreated to his hobbit hole during the last presidency. Where was he? All of this smells like dead fish. Very stinky.
Sorry folks, but something keeps telling me he keeps riding the war on terror theme and keeping America safer because he has stake in the profits! Hmmm, Blackwater??? IMHO.
stexcat, while we know they are diversified as far as defense, aerospace and security, did you really expect to see them on the insurance management list?
That's just wrong. Just because you get in on one government contract doesn't mean your qualified to get in on another. They parlay this shit into billions in other areas, and no one is looking.
Shit!
While those companies you highlighted are primarily know for their flight equipment, you would be surprised at how diversified they have become in the past 30-40 years. They have bought into most areas of defense and security.Companies you wouldn't have ever considered are part of their corporate structure. Also their PACS are extremely well funded.
Hey Voice,
nice post. For those of us with a 'conspiracy' predisposition here's this: Those numbers don't approach money spent on 'black ops' With nooo one including the President allowed to track the money. It requires a 'cosmic' clearance AND a need to know.
Eisenhower first warned us about the M-I Complex over 50 years ago. The amount of money going their way back then was miniscule compared to today. And with two wars to conduct, fighter planes that cost $28+ million each, guided munitions that cost $2-5 million each, although surprised am I, not by much.
What is even more disturbing is that SO MANY of these projects go WAY OVER budget and we just shell out the money when they send us a "supplemental invoice".
What I fear is that nobody, absolutely NOBODY is actually looking at how and where we are spending money and whether we are getting our money's WORTH. Most government "watchdogs" only verify the spending by making sure the items total up correctly. Our elected officials seem totally pre-occupied with getting their share of the pie, not protecting OUR PIE at all. Obligations to their contributors trump the interests of the taxpayer EVERY TIME.
This is getting really serious gang. It usesd to be that we were taling about million$$ of wasted dollars. NOW, it's BILLION$$. Fraud, corruption, graft, bribes........IT'S OUR MONEY AND NOBODY IS GUARDING THE PIGGY BANK.