“We shouldn’t be surprised. Sometimes the Pentagon is “duped”. Other times it just spends tax dollars knowingly on useless and/or crony expenditures.”
In some cases, the shell companies helped contractors obscure that they were making U.S. military equipment abroad, the GAO said, posing a risk to national security and quality control. More often, they were used to win contracts meant for companies owned by disabled veterans or minorities, it said.