# Defense Contractors



Obama's "five worst nominees"

Over at the Mother Jones blog, Kate Sheppard, David Corn and Daniel Schulman compiled a list of “Obama’s Five Worst Nominees.” Treasury Secretary Timothy Geithner doesn’t make the cut, which surprised me until I read the short bios of appointees who are likely to put corporate interests ahead of the public interest. In alphabetical order:

William Lynn, for whom the president made an exception to his policy on lobbyists in government. Lynn was the chief lobbyist for defense contractor Raytheon before becoming deputy secretary of defense in the Obama administration.

William Magwood, a “cheerleader for nuclear power” who has “worked for reactor maker Westinghouse and has run two firms that advise companies on nuclear projects.” Obama nominated him for the Nuclear Regulatory Commission.

Scott O’Malia, who was apparently suggested by Senate minority leader Mitch McConnell. O’Malia “was a lobbyist for Mirant, an Enron-like energy-trading firm” and lobbied for weakening the Commodity Futures Trading Commission, to which Obama appointed him.

Joseph Pizarchik, who helped form policies in Pennsylvania to allow disposal of toxic coal ash in unlined pits. Obama named him director of the Office of Surface Mining Reclamation and Enforcement.

Islam Siddiqui, whom Obama appointed to be the chief agricultural negotiator for the U.S. trade representative. Jill Richardson has been on this case at La Vida Locavore; see here and here on why Siddiqui is the wrong person for this job.

I wouldn’t suggest that this rogue’s gallery is representative of Obama appointees, but it’s depressing to see any of them in this administration.

In the good news column, Obama has decided to renominate Dawn Johnsen to head the Justice Department’s Office of Legal Counsel, along with five other nominees who didn’t receive a confirmation vote in the Senate last year.

Obama moves to curb wasteful spending

Ever notice how Republicans love to complain about “wasteful government spending” but never do anything about it when they’re in power?

Less than 100 days into his new job, President Barack Obama is taking a big step in the right direction:

Obama today issued a memorandum to the heads of all the executive departments agencies directing them to restrict no-bid contracts; to rein in outsourcing of “inherently governmental activities”; and to, if necessary, cancel wasteful contracts outright. The crucial paragraph, even if it’s written in bureaucratese, particularly calls out the Defense Department […]

Clearly, this has applications far beyond the Pentagon. But the list of big-ticket defense items that have experienced huge cost overruns is a long one. Future Combat Systems in the Army; the Littoral Combat Ship in the Navy; the Joint Strike Fighter in the Air Force – all of these programs, near and dear to the services, have run massively over budget. If I was a lobbyist for Lockheed or Boeing, I’d be dialing my contacts in the Pentagon and the Hill to figure out what the prospective damage to my company was. And then I’d come up with a strategy to fight this forthcoming Office of Management and Budget review.

Obama went further in remarks at the White House, calling it a “false choice” to say that protecting the country requires acquiescence to Pentagon waste. “In this time of great challenges,” he said, “I recognize the real choice between investments that are designed to keep the American people safe and those that are designed to make a defense contractor rich.” He also lent support to Sens. Carl Levin (D-Mich.) and former presidential rival John McCain’s (R-Ariz.) legislation to create new procurement oversight positions at the Pentagon. “The days of giving defense contractors a blank check are over,” Obama said.

Music to my ears: no more blank checks for crooked defense contractors.

The White House estimates that changing the way the government does business will save about $40 billion a year.

According to Citizens Against Government Waste, the total cost of approximately 11,610 earmarks in fiscal year 2008 was $17.2 billion. In fiscal year 2007, earmarks cost American taxpayers an estimated $13.2 billion. Republicans howl about earmarks (when they’re not busy getting them for their own constituents), but will they get behind Obama’s new effort to reduce huge cost overruns and no-bid contracts?

Obama could save even more money by cutting obsolete Cold War-era weapons systems, but I don’t expect him to take on that battle anytime soon.

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