From Deseret News archives:

Arms destruction drags

Glum Army audit blasts bonuses to contractors

Published: Monday, Feb. 19, 2007 12:07 a.m. MST
 |  E-MAIL | PRINT | FONT + - 
Congress originally ordered destruction of all U.S. chemical arms by 1996 and thought it would cost $1.7 billion. Recently, after a long string of revised estimates, the Army projected it will really cost $27.8 billion and not be finished until 2023.

Now, Pentagon inspectors worry even that may be too optimistic. They say big delays and cost overruns "will likely continue, making it difficult or impossible for the program to meet scheduled deadlines" — unless significant changes are made.

That is according to a report issued five months ago by the Army Audit Agency. The Deseret Morning News just obtained the report through a Freedom of Information Act request.

The report complains that contracts inadvertently reward contractors for delays and that contractors often receive performance bonuses when not earned. The Army also fails to investigate whether past delays and overruns will likely repeat, and it often fails to incorporate lessons from problems into projections for later work, the document said.

The findings are important to Utah, home of Deseret Chemical Depot and its Tooele Chemical Agent Disposal Facility. Before incineration of arms began at the disposal site, the depot stored 44.5 percent of the nation's chemical-arms stockpile — with smaller amounts scattered at eight other facilities nationally.

Story continues below
As of Feb. 7, the depot had destroyed 58 percent of its original stockpile. Pentagon budgets project continued funding for destruction work there through 2016 — although work schedules estimate the destruction could be completed there as early as 2012. Work at other bases could last until 2023.

Pentagon inspectors wrote that program projections may be too optimistic — mostly because the Army is not keeping close enough watch on contractors running destruction plants, nor giving them enough incentives to complete work on time.

In fact, inspectors say, the Army is doing the opposite — inadvertently giving contractors financial incentives to delay.

In part, they said, that is because contracts now cover their costs plus extra fees for administration. The longer facilities operate, the more contractors make — even if they miss some bonuses designed to reward on-time and environmentally sound work.

"Contractors had little incentive to — and weren't sufficiently penalized for failing to — prevent or minimize cost and schedule growth," inspectors complained.

They said they found that incentive bonuses for on-time and safe work are often given anyway, even when not earned, making the situation worse.

Comments

You can be the first to comment on this story.

previousnext

Latest comments

BCS did TCU a favor?

The term holy war is nothing more than a sophmoric sports jounalist...

More troubling was the report's assessment that the Democrats' plan to...

To "@RedShirt | 1:40 p.m." Here are some things to read. #1. I couldn't...

They are just NOW figuring this out?

Ranse Parker, I have a solution for you, offer your neighbors to build them a...

Heterosexuality is normal. Homosexuality is an abnormal choice for those...

If you don't trust Jeff's opinion, why are you reading it?

Utah Gov. Herbert, US Senators Bennett and Hatch, and Congressman Bishop...

Let's see, the first three paragraphs tell us clown prince harry's bill will:...

I have another equation that is happening RIGHT NOW. X-equals the amount...

Advertisements