Pentagon Pays $720 Million for Storage Containers…in Late Fees

[The Straight Story]

Pentagon Pays $720 Million for Storage Containers…in Late Fees

The Department of Defense managed to consume nearly three quarters of a billion dollars by having to pay late fees on rented shipping containers used for the wars in Afghanistan and Iraq, as well as for other purposes.

After reviewing federal data and contracts, USA Today determined that the Pentagon spent more than $720 million since 2001 on fees for shipping containers it failed to return on time. Although much of the loss was attributable to poor financial management, John Pike, executive director of Globalsecurity.org, told USA Today that another problem was that military leaders thought the wars in Afghanistan would end quickly and that late fees would be minimal.

Commonly used in maritime shipping, the containers have played key roles in Iraq and Afghanistan, serving as storage, shelter and building material. Each one can cost more than $2,200 in late fees alone, however.

The fees peaked in 2004, when the Defense Department spent $128 million. By 2008, only $17 million was paid for overdue containers, before the cost went up again in 2010, to $30 million.

http://www.allgov.com/Where_is_the_Money_Going/ViewNews/Pentagon_Pays_720_Million_Dollars_for_Storage_Containers__in_Late_Fees_110831

[Sherman A1]

1. They could probably just pick up a bunch of them used

near any port in the country, paint them whatever color was appropriate and then scrap them when done.

Once again "Your Tax Dollars At Work".

[Historic NY]

2. The fleecing of America by Americans......Who is minding the store?

[Booster]

3. And why aren't the Republicans in Congress screaming their

heads off about this? oh, yeah, it's the Pentagon.

[Fumesucker]

4. "military leaders thought the wars in Afghanistan would end quickly"

Fucking geniuses, anybody here on DU think the wars in Afghanistan would end quickly in 2001?

If you had told me in 2001 that we'd still be there in 2011 I'd have said no shit Sherlock.

[hunter]

5. Privatization makes holes that tax dollars disappear into.

Some of this money reappears as campaign contributions in support of candidates who promise to make more holes.

In our stagnant economy I'm pretty sure the Defense Department could have bought these containers outright for less than it cost to "rent" them even if the war had ended "quickly..."

It was obvious to most everyone that the war would not end quickly.