In an apparent last-ditch attempt to secure funding for the troubled Medium Extended Air Defense System (MEADS) program, MEADS International, the primary contractor comprised of Lockheed Martin and MBDA, conducted a flight test at the White Sands Missile Range on November 17, 2011. According to a press release, the test “demonstrated an unprecedented over-the-shoulder launch of the MSE [missile segment enhancement] missile against a simulated target attacking from behind.” Even though the U.S. and Germany have already indicated that they do not intend to undertake the acquisition phase of MEADS, funding has been approved for two flight tests. An intercept flight test is scheduled for the end of 2012. It is unclear how much these tests will cost.
GAO Skewers United Launch Alliance Contract Plans
The Evolved Expendable Launch Vehicle (EELV) program began in 1995 and was designed to allow the Department of Defense (DOD) access to space with the intention of reducing the cost of satellite launches by at least 25 percent while striving for up to 50 percent. Four contractors were initially approved to compete for the contract, but two EELVs were eventually selected: Boeing’s Delta IV and Lockheed Martin’s Atlas V.
Another Failing Federal Loan Program
The U.S. Department of Agriculture’s (USDA) Rural Electrification Administration (REA) program began during the New Deal Era of the 1930’s. The program’s primary goal was to promote rural electrification to farmers and residents in out of the way communities where, due to the high cost borne by utility providers, such investments were not considered feasible. By 1981, 98.7 percent of these homes and businesses received electricity and 95 percent received telephone service. Rather than declaring victory and closing its doors, REA was transformed into the Rural Utilities Service (RUS), which expanded to provide loans for broadband communications to underserved areas of the country. Through the RUS program, the USDA acts as a credit agency that assists rural electric and telecommunications utilities obtaining financing, as well as administers nationwide water and waste loan and grant programs that are intended to improve the quality of life and promote economic development in rural America.
Using Broadband Spectrum Auctions to Reduce the Deficit
As the White House, Congress and particularly the Joint Select Committee on Deficit Reduction look for ways to reduce spending and enhance revenues, close scrutiny is being given to both the allocation of broadband spectrum and the use of voluntary spectrum auctions to raise revenue for deficit reduction.
Time to De-friend Bad Federal Contractors
Waste and fraud among federal government contractors and vendors is nothing new. Congress after Congress has tried to put an end to the abuses to no avail. Although the number of contractors added to the Excluded Parties List System (identifying parties excluded from receiving federal contracts and other benefits, usually as a result of fraudulent or improper behavior) has increased in recent years, an October 2010 Government Accountability Office (GAO) report revealed that the lack of diligence by several federal agencies to root out waste and fraud is costing taxpayers billions of dollars.
Government in the Grocery Cart: $15 Billion to Influence Consumer Behavior
The Patient Protection and Affordable Care Act (PPACA) is wrought with onerous mandates, tax increases, Medicare cuts, unfunded Medicaid expansions, and numerous budgetary gimmicks. One egregious provision in the PPACA included $500 million in FY 2010 for the Prevention and Public Health Fund. On February 9, 2011, Department of Health and Human Services Secretary Kathleen Sebelius announced an additional $750 million “investment” for FY 2011 in the Prevention and Public Health Fund. These new dollars will “help prevent tobacco use, obesity, heart disease, stroke, and cancer; increase immunizations; and empower individuals and communities with tools and resources for local prevention and health initiatives.”
FCC Delivers a Turkey for Thanksgiving
Just in time for the Thanksgiving holiday, the Federal Communication Commission (FCC) is dropping a regulatory turkey on everyone’s doorstep. On November 20, 2011, the final rules of the “Open Internet Order,” also known as net neutrality, become final. These new regulations will significantly affect the ability of Internet providers to adopt new technology and adapt to the ever-changing needs of subscribers.
Earmark Moratorium: Earmarks Live On, Transparency Does Not
Considering that an earmark moratorium is in effect, Citizens Against Government Waste (CAGW)’s Pork Patrol sure seems to be uncovering a lot of earmarks.
When the one-year earmark moratorium was announced for fiscal year (FY) 2012, seasoned observers anticipated that earmarks would not disappear, but merely change shape. Judging by the 15 appropriations bills that CAGW has analyzed thus far, this viewpoint has been corroborated. Eleven of these bills contain earmarks, totaling 248 projects worth $9.5 billion. While the number has substantially decreased compared to prior years, any earmark violates the moratorium. Leading the way is the Department of Defense (DOD) bill, in which the Senate included 49 earmarks worth $2.9 billion and the House added 72 earmarks worth $3.9 billion.
Dismantle the USDA’s Milk Marketing Order System
Reports on the progress of Congress’s Joint Select Committee on Deficit Reduction in its quest to identify $1.2 trillion in savings by November 23, 2011 are decidedly mixed. An open hearing on October 26 yielded some hand-wringing, but little in the way of new information about the final outcome. An October 27, 2011 article in The Hill hints that the committee may be deadlocked.
Congress and the Criminal CLASS
When President Obama signed his contentious healthcare bill, the Patient Protection and Affordable Care Act (PPACA), on March 23, 2010, his administration and a Democratic Congress had spent months convincing many lawmakers, pundits, and voters that expanding subsidized healthcare was not only the right thing to do, but that it would be beneficial for taxpayers in the long term. Fiscal conservatives (including Citizens Against Government Waste) howled that the Congressional Budget Office’s (CBO) 10-year, $210 billion deficit reduction estimate for the bill was wildly overstated. But the CBO is supposed to be a nonpartisan judge, and advocates on both sides of the aisle have long cited its findings as backing for a variety of causes. Accordingly, cries of fuzzy math or budget gimmickry fell on deaf ears.