About a quarter of Pentagon purchases related to COVID-19 were illegitimate, watchdog says

An estimated 26 percent of purchases the Department of Defense (DOD) reported supporting its response to COVID-19 were for unrelated items, according to an Inspector General report released Thursday.

March 2020 Memo from Former President Donald Trump in Response to the COVID-19 Pandemic sprout gave DOD program officials the ability to increase the limit on government credit cards from $10,000 to $35,000, seconds in the report. Cardholders used the increased limit to make unrelated purchases on items from shipping to food, and sometimes failed to produce receipts or obtain necessary approvals before making a purchase.

“It is very important to track implementation and ensure that funds are only used for their intended purpose, including providing evidence to support items purchased in support of COVID-19, for audit” , Pentagon guidance issued near the start of the pandemic said. the report

The inspector general randomly showed 127 purchases out of a total of 110,525 made between March 2020 and January 2022, amounting to $239 million, all recorded in the Pentagon's Report of COVID-19 Transactions. Of these, 33 did not appear to support DOD's COVID-19 answer and 45 did not meet all documentation requirements.

If the sample is representative of the 110,535 purchases, up to $53.2 million intended to support the Pentagon's COVID-19 response could have been used for other purposes, the report said.

The purchases were made by each of the military services, as well as by several defense organizations with civilian personnel.

For example, the Army spent $2,394 to dig up a pipe in the process of determining the cause of a hole, and then labeled that purchase as “COVID-19” in the bank's transaction management system, according to the report Army officials maintained that the Army did not actually pay for the plumbing services with funds earmarked for the COVID-19 response.

The report shows the Air Force spent $4,158 on an Nordic exercise machine and mats.

Other purchases were smaller, including $405 for a standing desk for military personnel and $151.99 for financial training. Cardholders canceled purchases for shipping, food, vehicle maintenance and other miscellaneous purchases.

Credit cards cover minor purchases valued at less than $10,000, according to the inspector general.

“Without adequate oversight, DoD cardholders will continue to misidentify or code GPC purchases as related to contingency operations, fail to adequately support purchases with required documentation, and be at increased risk that activities fraudulent, inappropriate and other abusive without detecting them”. the inspector general wrote.

Thanks to our medical heroes.
Members of the @USAArmy The medical team will receive a warm welcome from the staff of the @SaintFrancisCT and Medical Center as thanks for their support to the #Covid19 answer in Hartford, Connecticut. pic.twitter.com/k6kYJyPHfU

– Department of Defense (@DeptofDefense) February 18, 2022

In a response to the report included as an appendix, the Department of Defense Pricing and Contracting, the Pentagon division responsible for policy-related contracts and pricing across the Department of Defense, agreed with the recommendations of the report and proposed actions to address the shortfall. The agency disagreed that DOD could have saved $53.2 million with purchases that did not fit the definition of supporting DOD's response to COVID-19.

“The expenditure of funds was neither necessary nor reasonable for the intended and reported purpose (DoD's COVID-19 response),” the inspector general wrote in response, asking Defense Pricing and Procurement to respond within 30 days

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