12 months ago. and june was the deadliest month on record for u.s. troops in more than two years. perhaps what is most shocking is the claims that a u.s. government contractor named an ham overcharged the pentagon and the american taxpayers for items like control switches and pvc pipe, sometimes 5,000% mark up, even 12,000 in one case. we sat down with the inspector general to get answers. this is an example of failed government oversight and excessive billings by the contractor. specifically, a study in weak subcontractor management and the failure to review invoices. we have an example of a pvc pipe that costs $1.41. the university is government was charged $80 for this, a
reporter: the pentagon budget has nearly doubled since 9/11. the department will spend $721 billion in fiscal year 2011. $6,110 for every u.s. household and employs 2.3 million people. a recent report from the special inspector general for iraq gave examples of how the defense department still overpays for things civilian can purchase in a hardware store for a fraction of the cost. the military paid contractors $900 for control switch valued at $7.05. $700 for plumbing equipment valued at $1.41. $4,500 for circuit breaker valued at $183.30. the pentagon argues it s already started making cuts in the pending fiscal year 2011 budget proposal it ends the c-17 plane production and stops pursuit of a second engine for the joint strike
reporter: the pentagon budget has nearly doubled since 9/11. the department will spend $721 billion in fiscal year 2011. $6,110 for every u.s. household and employs 2.3 million people. a recent report from the special inspector general for iraq gave examples of how the defense department still overpays for things civilian can purchase in a hardware store for a fraction of the cost. the military paid contractors $900 for control switch valued at $7.05. $700 for plumbing equipment valued at $1.41. $4,500 for circuit breaker valued at $183.30. the pentagon argues it s already started making cuts in the pending fiscal year 2011 budget proposal it ends the c-17 plane production and stops pursuit of a second engine for the joint strike
by a contractor named anhenllv for a control switch valued at $7. $80 for a piece of equipment valled at $1.41. and $40 for a circuit breaker you and i could buy for $8. the contractor says the charges are false and without legal or federal justification. senator susan colins of maine says the state department has refused to provide documents to help the inspector general s investigation and calls the situation absolutely unacceptable. shannon: two american hikers charged with spying on iran will not be released today but you will soon learn their fate. the trial wrapped up in tehran today, two years exactly since the day they were arrested. iran s arabic language ail alan television quoted a judicial official sass saying their
what about these contractors in iraq and what kind of forms of abuse are in the report? overcharging the government as you said, the report singles out one company, based in northern virginia and the subcontractors, the report says the government was charged $900 for a control switch, valued at $7.05. and $75 for a piece of plumbing equipment, valued at $1.41. and, $4500 for a circuit breaker that you could buy for $183.30. and, there has been no official response to the charges from the company and, susan collins, senator from maine, weighed in on this saying the state department refused to provide documentation to help the inspector general in its investigation and she calls all of this absolutely unacceptable. bill? indeed. steve centanni, thanks, in washington. what s coming up, jenna? lawmakers as we said are inching closer to a possible