$47,000 for a $15 Control Knob is a Prime Illustration of How the U.S. Military Has Been ‘Conned’
Image: Wikimedia Commons (Public domain photograph from defenseimagery.mil)
It should come as little surprise that major defense contractors have historically overcharged the U.S. military for equipment, even when cheaper commercial alternatives were available—but officials say that era is ending.
On November 14, Reuters reported that U.S. Army Secretary Dan Driscoll told reporters, “(The) defense industrial base broadly, and the primes in particular, conned the American people and the Pentagon and the Army.”
Retired U.S. Army Lt. Col. Darin Gaub, a former UH-60 Black Hawk pilot and battalion commander, spoke to The Gateway Pundit about his experiences with the military acquisition process. “I’ve had an insider’s view, from Congress to the defense industry,” Gaub said.
He described the system as “inherently favoring winners and losers because it is excessively bureaucratic and continuously rewards large companies that have the time and resources to navigate a process full of hurdles.” Driscoll noted that the government itself partly created incentives for companies to charge exorbitant prices.
Gaub agreed. “These companies have the financial means to reward politicians who allow contracts that encourage sole-source acquisitions of major equipment and multi-year maintenance packages filled with expensive parts and specialized labor,” he said.
“This applies not only to aircraft and ships but also to complex digital systems whose repair depends heavily on contractors,” Gaub added. “Companies limit access to knowledge and components that would allow servicemembers to fix equipment in the field. That’s why a knob that small companies could make for $15 ends up costing $47,000 under restricted contracts.”
The Army has confirmed this discrepancy. A control knob for a Sikorsky Black Hawk helicopter, produced by Lockheed Martin, costs tens of thousands as part of a full assembly but could be manufactured separately for just $15.
Looking ahead, Gaub warned of national security risks. “As America tries to keep pace with emerging threats I predicted twenty years ago, we risk letting smaller nations match our lethality because we spend millions on equipment they can acquire for thousands,” he said. “Taxpayer dollars go to contractors who rely on Congress to keep startups out, even though these smaller companies can deliver the same or better results.”
He added, “The result is inferior equipment at high cost, often already outdated when it enters service, while the big companies profit handsomely.”
Driscoll, however, insisted that change is underway. “The system has changed. You will no longer be allowed to do that to the United States Army.”
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