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Report identifies problem in wasteful price growth at Pentagon

A report from the Government Accountability Office has identified $135 billion dollars in price growth from original spending estimates at the Pentagon in the past two years. The report indicates that much of the overspending is caused by mismanagement and projects that went to production before testing was complete.

The GAO says that the projected cost of the Pentagon’s largest projects has grown by 9 percent, or $135 billion in the past two years. While 65 billion of those dollars has resulted from the government’s decision to purchase more goods than initially estimated, the other $70 billion appeared “to be indicative of production problems and inefficiencies or flawed initial cost estimates.”

This report comes following efforts by the Obama administration and Congress to curb wasteful spending in the defense sector. While the GAO said that spending efficiency appears to be improving in new programs, many programs have not been “fully adhering” to regulations intended to prevent waste.

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