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Wednesday, August 09, 2006
Terry Jeffrey :: Townhall.com Columnist
532 bottles of (tax-funded) beer on the wall
by Terry Jeffrey
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An old, monotonous song celebrates drinking 99 bottles of beer. But officials at the U.S. Coast Guard Academy did better than that. Between last August and March, they brewed and consumed 532 bottles -- courtesy of U.S. taxpayers.

Swilling ale is an ancient seafarers' tradition. But did the Coast Guard really need a tax-funded microbrewery?

The brewery was made possible by a government charge card issued to an academy official responsible for "organizing social functions." According to congressional testimony published last month by the Government Accountability Office, the official used the card to purchase a beer-brewing kit and some ingredients and then "wasted government resources by brewing alcohol while on duty."

When GAO auditors looking into the use of charge cards at the Department of Homeland Security (DHS) discovered the purchase, Coast Guard officials were defiant. The brewing equipment, they said, according to GAO's testimony, "provided the academy with both cost savings and a quality product for official parties attended by cadets, dignitaries, and other guests of the superintendent."

Bottles of their brew came with special custom-made labels, the Coast Guard boasted, and were an effective "ice-breaker" at parties.

The auditors did not dispute that the beer was an "ice-breaker." They were dubious, however, that the Coast Guard saved money by brewing its own (even though the academy purchased additional beer-making ingredients with non-governmental funds).

A six-pack of the Coast Guard's brew, GAO calculated, cost more than $13 to make.

After GAO's sobering testimony, the New York Post revealed that the pricey beer was brewed under the direction of Adm. James Van Sice, Coast Guard Academy superintendent, whose own visage stamped on the label of a libation called "The Admiral Amber Ale."

The Post dubbed Van Sice "Admiral Brewski." Within days, the academy announced he would be reimbursing the government $227 for the brewing kit.

But Admiral Brewski's microbrewery was just a drop in the ocean of abuse GAO has discovered in the use of government charge cards.

GAO's July testimony also revealed, for example, that officials at the Federal Emergency Management Agency (FEMA) used charge cards to purchase 200 laptop computers at a cost of $300,000, for use in relief work in the wake of Hurricane Katrina. FEMA, however, did not properly record where the computers went.

When GAO auditors went looking for them in Louisiana, FEMA officials said the laptops had been shipped directly to a conference room at a New Orleans hotel that was being used as a command post. Investigators found the room empty. Continued...

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About The Author

Terence P. Jeffrey is the editor-in-chief of CNSNews

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Punishing the System
The credit card system has saved the government untold millions. The problem is that it is difficult to show those savings. The savings are in the labor hours wasted in the procurement system before the credit card came along.

I work for the government and I remember having to fill out 9-part paperwork (yes 9 copies!) for each small purchase. In my case it was for electronic parts for R&D programs. So for a $20 purchase, I had to fill out the paperwork, contact at least three vendors and get price quotes. My cost to the government at that time was about $50/hr. This usually took 3-5 hours.

Off it went to the contracts branch. There some GS-9 contract specialist put it out for bid, required to go to the lowest bidder. Time cost of 8-20 hours at about $40/hr. Often I received the parts a year or two later (no way to require on-time delivery - lowest bid remember). Total cost for a $20 purchase $500-800.

With the credit card, I just get on the internet to find a vendor or two, verify that the part is in stock, and go to the credit card holder in my office to make the purchase. 1 hour at $100/hr. Credit card holder has some paperwork to fill out to satisfy the procurement laws. $20 part gets delivered within a week. Total cost for a $20 purchase $150-300.

The laws and regulations are in place to prevent abuse of the credit cards. The problem is that the civil service system prevents punishing people that abuse the credit card. The current limit is $2500 for credit card buys. This was waived to $25,000 for Katrina.

The people who misused the card should be demoted, fired, or imprisoned. I don't think this will happen because the paperwork involved is too much trouble for their supervisor and would be a black mark on the supervisor's record.

The credit card saves the goverment and the taxpayer a tremendous amount of money. The procurement organization has been downsized 70% because they no longer have to make all the small purchases. This saves millions of dollars, but is hard to measure.


YOU MEAN,
they found a way to do things cheaper???????????
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