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Monday, April 17, 2006

The "performance" bonus, a la Pentagon

I'm sure Halliburton is a beneficiary of this practice too:

In late February 2004, the Army announced that it was canceling plans to build a radar-evading helicopter called the Comanche, a project that was nearly three years behind schedule and more than $3.5 billion over budget. Those problems, however, didn't stop an Army panel a few weeks later from granting the Boeing Co.-Sikorsky Aircraft Corp. partnership running the program a $33.9 million "award fee" for their work on the helicopter, part of more than $200 million in such fees paid to the partnership over four years.

Award fees are meant in theory to motivate defense contractors with extra money for performance. But a recent Government Accountability Office study found that the fees are often paid regardless of whether a project is on schedule and within its budget.


Bush has got to keep his friends happy, and, after all, it's not his money. It's not coming out of his pocket, it's coming out of yours.

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