logo


Pentagon's Storage Container Late Fees Total $720 Million (VIDEO)

First Posted: 08/29/11 01:35 PM ET Updated: 10/29/11 06:12 AM ET

At a time when spending cuts are at the heart of a heated political debate, the last thing the Pentagon needs is hundreds of millions in late fees.

The enormous cost comes from shipping containers that simply havent been returned on time, mostly in use for the wars in Iraq and Afghanistan. Changing terms and an unforeseeably long war have made the containers extremely expensive and hard to return without incurring extra costs. To this point approximately $720 million in fees have been incurred in addition to the initial cost of the containers.

 
  • Comments
  • 32
  • Pending Comments
  • 0
  • View FAQ
Comments are closed for this entry
View All
Favorites
Recency  | 
Popularity
Page: 1 2  Next ›  Last »  (2 total)
photo
Bexarpaw
Just tryin to get outta this world alive!
07:42 PM on 08/29/2011
We can't feed children and we can;t help the elderly and we need to cut servicemenbers benefits, but we can afford 720Mil in late fees oin "Storage Cntainers"??????? Hell yoiu could have bought them for that much!

Bend over folks, there is much more of that down the road just waiting for you.
photo
kasel1
Sarcastic physicist, musician, author
06:44 PM on 08/29/2011
I guess this is some more of the hidden cost of government. You know, along with the 100 million Verizon overcharged for telephone service. Dig deep enough and you see whose pockets were lined by deficit spending.
06:40 PM on 08/29/2011
Now this shows us just how stupid the military is. If we cut 2 trillion dollars from thier budget they would never know. With all thier waste they keep wanting more money. pon't give them a penny until they can account for every dollar they get.
photo
SpookyAnnya
RN for higher teachers' salaries
05:39 PM on 08/29/2011
So the Congress allowed a 5 week stop in funding to the FAA causing 1 billion dollars in lost revenue and halting 74000 jobs approxamately. Now the pentagon has late fees? I say the pentagon pays them out of their own budget...... you know. Let Congress hire their own bodyguards.
photo
LetMeOut
Step out of the box-Think for yourself
05:38 PM on 08/29/2011
While government waste's money we continue to pay and pay and pay and pay.
photo
HUFFPOST SUPER USER
dvncmdy
I'm being followed by a moon shadow
11:33 AM on 08/30/2011
Parrot is a cracker? I mean wanna cracker? mimicking you're good at......
This user has chosen to opt out of the Badges program
jlet37
Artist, Writer, Photographer, Researcher
05:36 PM on 08/29/2011
Normally containers would be purchased under contracts or purchase orders then sold at a later date through auctions when no longer needed. It would be impossible to know how long they would be needed if they had been leased. And if they were leased the contracts would have been extended covering any changes in the use of the equipment. The billing will undoubtedly be scrutinized before anything is done with it. Its also impossible to know how many containers are left, and how many were destroyed in attacks without a physical inventory accounting for them.

Who is the contractor on this? Appears someone by passed public affairs and dropped the ball by making this public. Will be interesting to see who the contractor is or if there are multiple contracts, and contractors here.
photo
LetMeOut
Step out of the box-Think for yourself
05:35 PM on 08/29/2011
Would it be too much to ask that ALL of our government officials be responsible---It seems like all of them are idiots and they are the real problem with this united states debt--Christ, It appears they couldn't run a chicken coup.
photo
HUFFPOST SUPER USER
Joe Hennes
There is no topic that cannot be discussed calmly
05:16 PM on 08/29/2011
I get so tired of alarmist, incomplete reporting. How much would it cost to return the containers? Why don't you report that? Maybe because it would cost just as much or more as the late fees and you wouldn't be able to get everyone all excited?
photo
HUFFPOST SUPER USER
Roy m
"Fighting for a fair and, balanced America"
04:40 PM on 08/29/2011
Why didn't they just buy them in the first place and sell them off when not needed ? This makes no scenes. WHO IS WATCHING HOW THE MONEY IS SPENT ?
07:55 PM on 08/29/2011
Nobody is that's why the good ol USA is in debt up to it's ears.
04:25 PM on 08/29/2011
One more reason we need someone who has "successfully" run a business in charge of the nations "business"!
05:19 PM on 08/29/2011
Thats right thats why we need Herman Cain in 2012 to get this crap stopped.
photo
had410
Sorry GOP/ Gary Johnson 2012
06:28 PM on 08/29/2011
the former federal reserve chairman as president of the u.s.? no thank you, who would his v.p. be geihtner? the last thing we need is a bankster(officially)running the country!
02:47 PM on 08/30/2011
Funny you should mention Herman Cain. Many years ago I had the pleasure of working with Herman in my position as a Weapons Systems Division Manager at the Naval Weapons Center in Virginia. Mr. Cain was assigned to my division for a period of 4 months as part of his his Junior professional training program. At the time, as a new college graduate. It was laboratory policy for new professionals to have one assignment outside their own department. I found Mr. Cain to be a delightful and energetic hard working employee. Herman could no doubt bring some business know-how into the present vacuum in DC.
07:27 PM on 08/29/2011
How would that help this problem?
03:51 PM on 08/29/2011
Late fees for material used in a war zone? Some of that privatization at work, it would probably be much cheaper if they bought there own to start with. Reportedly when they end up buying one of the 20-foot containers, rent-to-own approach, they pay $7,200 for a $2,400 container!

Of course that is small potatoes compared to around $30 Billion flushed down the drain through contractors. Check out this waste: http://www.newser.com/story/127161/military-contractors-30b-wasted-in-iraq-afghanistan-contracts-report-says.html
03:38 PM on 08/29/2011
Almost three quarters of a BILLION dollars in LATE fees? And tea party complains about welfare and the affordable care act but not the military? UNACCEPTABLE PEOPLE!!!!
03:58 PM on 08/29/2011
You are totally uninformed and should try to check your statements before writing. Tea Party is against ALL waste and fraud and unnecessary spending. They are against this type of waste but can't seem to get elected officials to stop fraud and waste. Lots of talk about how much there is but no action to stop it.
03:26 PM on 08/29/2011
Just another example of how ineffective the whole federal system is. This is probably only a drop in the bucket. Do you think that if these wasteful practices were corrected we could probably balance the budget? If so congress needs to spend its time correcting these problems instead of screwing over the middle class.
03:59 PM on 08/29/2011
The larger the federal government, the harder it is to stop the waste and fraud. If local communities were spending their own money, you can bet this would not happen. It only happens when someone else's money is being spent.
Frankling
Fruit don't talk. Fruit just listens...and waits.
03:23 PM on 08/29/2011
By now, there's bound to be people living in those containers, if they haven't been cut up to reinforce the armor on the Humvees the military is using.
I wonder what the scrap market is like in the Middle East? I doubt that anyone got $720 million out of them but it wouldn't surprise me to find out that a subsidiary of the container company hadn't scrapped them out to make money on both ends of the deal, and save the expense of shipping empty containers to another point of use.
Since we're in 2 (1/2) wars, I believe it's the container company's patriotic duty to waive those late fees.
This user has chosen to opt out of the Badges program
photo
thetxsndn
Man Plans. God laughs.
03:19 PM on 08/29/2011
Heull one freekin year's power bill alone for that huge freekin thing has got to be enough to feed the 3rd world countries for 10 yrs.