Last week, we learned that POGO Program Editor Danni Downing was reading Berkeley Rice’s The C-5A Scandal: An Inside Story of the Military-Industrial Complex. Since then, Danni has been circulating choice passages from the book around the office, reminding us of the climate of defense contracting and procurement in the 1960s and ’70s.  For your consideration:

“Is the Federal Government so intimidated by its contractors that it must continue to dole out public money for new contracts, regardless of whether or not they are needed, so that the contractors will not default on the old contracts? Do defense contractors have such a stranglehold on the Government that it is really they, not us [Congress], who control the public purse strings?”

Senator William Proxmire, 1969, speaking about Lockheed and the C-5A airlifter.  The Congressional Record, September 9, 1969, pp. S10327-S10328 (p. 181 in Rice’s book).

“This happens all the time….When things are going well, the companies stress the idea of free enterprise, with no need for government regulation. But when things aren’t going well, they suddenly become a ‘close partner’ with the government, and wait it to bail them out. All they have to do is threaten to collapse, and the government pours in more money.”

Earnest Fitzgerald in an interview with Berkeley Rice, p. 190.

And also:

“From top to bottom, the military procurement system has a built-in bias favoring the industry point of view. Industry executives on DoD advisory commissions “help” set procurement policy. Top DoD officials are customarily drawn from the executive ranks of the defense industry, spend a few years at the Pentagon, and then return to the industry laden with inside knowledge and contacts.” (p. 211)

“[The C-5A affair] raises certain questions about the nature of “free” or “private” enterprise in the defense industry….To what extent is the defense industry “free” enterprise if companies can tie themselves into huge contracts, without the threat of competition, despite shoddy performance and gross mismanagement? … Unfortunately, most of what happened to the C-5A happens to all military procurement programs. C-5As will continue to happen unless the public demands a change in the system. Until then, the public will have no choice but to continue paying the bills.” (pp. 212-213)

Keep those pearls of wisdom coming, Danni!

— Bryan Rahija

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