War & Disaster Profiteering
The Northrop Grumman Corporation, the largest builder of warships in the world, was on a charm offensive here Tuesday. Armed with slides and charts, Philip A. Teel, who runs Northrop's shipyards, led a phalanx of executives who laid out their case for another $200 million from Congress to cover losses from Hurricane Katrina.
Now those promises -- and the public's perception of the Air Force's ability to spend its money prudently -- are being tested by new contracting and public relations challenges. The Air Force is about to award two key contracts worth a total of about $55 billion, and Boeing is in the running for both deals.
Lockheed Martin, the biggest U.S. defense contractor, failed to follow military guidelines to track and manage costs on major weapons programs, according to an internal Pentagon document released yesterday by a government watchdog group.
Almost a decade after the "War on Terror" began, a bipartisan U.S. Congressional commission spent two days cross-examining witnesses to see if the outsourcing of private security has been a terrible mistake.