Pentagon program results in inflated prices

Lauren Markoe and Seth Borenstein of Knight Ridder Newspapers conducted a computer database analysis to show that a Defense Department purchasing program called prime vendor is costing taxpayers 20 percent more than the previous system. " Run by the Defense Logistics Agency (DLA), the program is based on a military procurement strategy to speed delivery of supplies such as bananas and bolts to troops in the field." The database analysis consisted of a comparison of prices charged by a small segment of prime vendors and prices for the same items purchased from companies outside the prime vendor program. A total of 2.37 million pieces of equipment cost the government $37 million, $1.2 million more than what the government would have paid normally outside the program.