WHERE THE MONEY GOES Part 1: Government War Contracts Unaffected By 2019 Partial Shutdown

From the beginning of the recent government shutdown (December 11, 2018) to its uncertain end (January 21, 2019) the war machine continued rolling on as the war economy reaped enormous contracts. The figures are stunning, as we shall see in this piece.

Each branch of the military doled out huge contracts to various entities including ‘heavy hitters’ Lockheed Martin, Boeing, Northrup Grumman and others. Also included in the figures we are about to share, smaller companies (noted with an *) were represented as a percentage of the bounty awarded; no doubt sweetheart contracts set up with elected officials from the particular states where the actual work is to be done. (We will pursue this line of thought in future reports on ‘Where the Money Goes’).

The figures have been compiled in an unscientific method using sources from the corporations’ websites, reports and so on. A great deal of our info was taken from the official website of the Department of Defense. We will post all appropriate links within the body of the article.

On December 11, 2018 the following contracts were awarded by the Department of Defense. Some were for fiscal 2019 to be completed in that year while others were long-term contracts spread out over many years. That day, the DoD announced these allocations:

For the US Navy: Totaling nearly $90,000,000.00 agreements for a variety of services were awarded to the following entities- Sikorsky Aircraft Corp./A Lockheed Martin Co. of Stratford, CT, General Dynamics Electric Boat Groton CT, Lockheed Martin, Mission Systems and Training, Baltimore, MD and Bluestone* of Berwyn, PA.  The US Army fared even better with contracts amounting to $192, 012, 009 which was shared with Michelin NA, Greensboro, NC and Greenville, SC, Goodyear Tire and Rubber Akron, OH, World Wide Technologies, Maryland Heights MO, Rockwell Collins, Inc., Cedar Rapids, IA, Raytheon Lockheed Martin, Tucson, AZ, The Protective Group, A Point Blank Co.* Miami Lakes, FL, and Construction Co., Inc., Dayton, OH. Finally, Boeing in El Segundo CA was awarded a huge ($22,772,840) contract by the DoD for the USAF.  The total contracted (and yes, some of these contracts had been negotiated prior to this date but they were confirmed and reconfirmed) to the tune of $308,884,541.

Some of the items and services contracted run the gamut from dental supplies provided by Practicon, Inc.* (https://www.practicon.com), enhanced ballistic armor protection system kits from Protective Group, A Point Blank Co.,  2D technical support for submarines, RD and T (research, development and testing) from General Dynamics (https://www.gd.com)  and from- Boeing (www.boeing.com)  space-based, space surveillance systems and Red LAN (Local Area network). But that’s not all!

Over the course of the one-month shutdown, there were concerns (mostly unrealized) that government workers would not receive paychecks, social security and supplemental nutritional assistance (SNAP) recipients would be shorted their benefits interminably, etc. Mainstream media kept that conversation alive while none of the speculation came to pass.

With the exception of few workers – most in the private and public center were paid normally or received checks retroactively.

The largest area of concern, in truth, came from government contractors who saw their allocations, awards and payments threatened. The government entities that did shutdown were not critical and, although paychecks were affected, few lost ground. Closing national monuments and parks is hardly life-threatening (albeit workers suffered delayed paychecks). The IRS had cutbacks but, reportedly, 60% of that group was covered by a hardship rule and showed up at work

The truth is—nearly all government offices, departments, and other functions continued operating during the 35-day partial shutdown—mostly since funding had already been locked in prior to the shutdown.

Military contractors and the Department of Defense continued to negotiate and affirm deals that covered every state from Washington to New Hampshire,  every city from Ft. Worth, TX to Newport News, VA.

As an example, on December 27, 2018— in the middle of the longest government shutdown in history a total of $683,200, 849 was awarded to various weapons and support corporations. This figure represents a more than doubling of military contracts in a matter of seventeen (17) days!  Of that total, funds were awarded to military interests such as Lockheed Martin ($712,842 Huntington Ingalls Industries (Newport News (VA) Shipbuilding and Drydock Co.) $239, 818, 298), Georgia Power Co., Atlanta ($25,500,000), BGI*, Akron, OH ($7,761, 863).

In a joint award, $22,500,000 earmarked to be shared between several corporations large and small. The collaboration expected to be completed by December 31, 2022 as noted below. Here is the breakdown direct from https://dod.defense.gov/News/Contracts/Contract-View/Article/1721774/ for that date. This joint award responded to requests for the US Air Force.

BAE Systems Information and Electronics Systems Integration, Nashua, New Hampshire (FA8604-19-D-4021); The Boeing Co., Defense, Space & Security, St. Louis, Missouri (FA8604-19-D-4022); General Atomics Aeronautical Systems Inc. GS-ASI, Poway, California (FA8604-19-D-4020); Goodrich Corp., UTC Aerospace Systems, ISR Systems, Westford, Massachusetts (FA8604-19-D-4023);  Harris Corp., Electronic Systems, Integrated Electronic Warfare Systems, Clifton, New Jersey (FA8604-19-D-4027); Lockheed Martin Corp., Lockheed Martin Aeronautics Co., Fort Worth, Texas (FA8604-19-D-4026);  Northrop Grumman Systems Corp., Northrop Grumman Aerospace Systems, Melbourne, Florida (FA8604-19-D-4024); and Raytheon Co., Raytheon, El Segundo, California (FA8604-19-D-40250), have been awarded $22,500,000 ceiling indefinite-delivery/indefinite-quantity contracts for the formation of a collaborative working group of various industry partners to work as a single extended entity to develop, evolve, and update via pre-planned product improvement initiatives, as well as manage and provide configuration control of the Open Mission Systems and Universal Command and Control Interface standards, collectively referred to as the Open Architecture standards.  These contracts provide for the development, updating and management of the above standards with the following business goals: promote adaptability, flexibility, and expandability; support a variety of missions and domains; simplify integration; reduce technical risk and overall cost of ownership of weapon system programs; enable affordable technology refresh and capability evolution; enable reuse; enable independent development and deployment of system elements; and accommodate a range of cybersecurity approaches.  Work will be primarily performed in Nashua, New Hampshire; St. Louis, Missouri; Poway, California; Westford, Massachusetts; Clifton, New Hampshire; Fort Worth, Texas; and Melbourne, Florida, and is expected to be complete by Dec. 31, 2022.  This award is the result of a sole-source acquisition.  Air Force Life Cycle Management, Wright Patterson Air Force Base, Ohio, is the contracting activity. (Contracts awarded Dec. 14-18, 2018).

This above is a collaboration of some of the most powerful weapons and warfare systems manufacturers and researchers on earth. The funds pumped into their coffers is breathtaking to say the least.

Not to be outdone, on January 22, 2019 as the shutdown appeared to be winding down, the following funds were awarded for the purpose of war and the preparations for war:
$2, 903, 722, 877. Just imagine if one quarter of that figure, or $725,930,719, could be used to improve our waterways, schools, food insecurity, highways, bridges, forests, communities!

Keep this in mind: The Department of Defense had not been audited for nearly 20 years until recently. And that audit and its results have not been published nor have millions in ‘lost money’ every been reconciled.

Keep up to date as we attempt to answer the questions about the US war machine, a bipartisan product of a failed electoral system corrupted by the Establishment. Check us out at: marchonpentagon.com


    February 3, 2019 REPLY

    It occurs to me that the ‘trickle down’ economy is intended to keep the masses (the 99%) content as long as there is something left after the gluttonous war machine has siphoned off its allocation from the U.S. Treasury. The general attitude among the masses seems to be “Oh well, better to have leftovers than nothing at all…”

    AND, the mass-media audience can’t connect the global crises-and-misery with U.S. perpetual war atrocities…

    February 3, 2019 REPLY

    It bears mentioning that the majority of citizen workers who were hosed with regard to their pay were/are employed by privately owned government contractors that fill the ranks in the lower echelons such as janitors, security guards, housekeepers and so on. The TSA, for example, is privately run in 22 airports around the country. The mainstream media has enjoyed (with little push back) reporting while not reporting this detail. About 500,000 of the 800,000 workers reportedly affected work for the FEDERAL government directly. The rest work for contractors who sign agreements with the Feds. People who were/re receiving benefits such as SSI received their checks on time. SNAP (Food Stamps) recipients received their funds in double and, although the funds were late, they were not withheld.

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