Addressing DoD Fraud has been an unsolved problem for decades, yet department expenditures of $850 Billion+ annually are invovled.
The DoD represents approximately half of Congress discretionary spending and 82%+ of the U.S. Government’s physical assets. Approximately $10.8 Billion has been confirmed as fraud, with actual levels likely much higher.
Despite decades of GAO Reports and recommendations, the extent of fraud affecting DOD is simply not known and will not be until the DOD implements a comprehensive antifraud strategy. In fact, the DoD has not passed a financial audit in decades.
The U.S. Department of Defense (DoD) has never passed a full financial audit. Since 2018, when it became legally obligated to complete full annual audits, the DoD has received a “disclaimer of opinion” on each audit, meaning that its financial records are in such poor condition that auditors couldn’t form a comprehensive assessment.
DoD remains a high-risk areas as designated by the GAO. (GAO, High-Risk Series: Heightened Attention Could Save Billions More and Improve
Government Efficiency and Effectiveness, GAO-25-107743 (Washington, D.C.: Feb. 25, 2025).
Specific to facilities and the built environment, the DoD has not true cost visibility or cost management capability as it still largely relies upon national average cost data, location factoring, historical data, and contractor estimates. This is unacceptable when objective, detailed line item local maket cost data is readily available.
Robust and integrated planning, procurement, and project delivery processes that are collaborative and transparent could save 30%-40% of associated built environment related activities.
via 4BT.US – Efficient Project Delivery Systems for the Built Environment