While US Refineries Close; Costing Americans good paying jobs; The Pentagon pays Dictators for Fuel that could be sourced from Pennsylvania (home of the Liberty Bell)!!! Now that's Patriotism (just whose??)

Officially, the U.S. does not pay other governments for rights to military bases. The logic is straightforward: funneling money to the treasuries of foreign dictators cannot form the foundation of genuine strategic alliances. Yet, to fight wars in Iraq and Afghanistan while staring down the mullahs in Iran, over the last decade the Pentagon has come to rely in an unprecedented way on a web of bases across the Middle East. And a NEWSWEEK investigation of Pentagon contracting practices in Abu Dhabi, Kuwait, and Bahrain has uncovered more than $14 billion paid mostly in sole-source contracts to companies controlled by ruling families across the Persian Gulf. The revelation raises a fundamental question: are U.S. taxpayer dollars enriching the ruling potentates of friendly regimes just as the youthful protesters and the Arab Spring have brought a new push for democracy across the region?


Take a look at Abu Dhabi. The wealthiest of the United Arab Emirates, it hosts a U.S. Air Force base at Al Dhafra, which is a vital refueling hub in the region. As is the case in most Gulf states, Abu Dhabi is ruled by a single family that dominates both government and business. Here it is the Nahyan family, and the emir is 63-year-old Sheik Khalifa bin Zayed Al Nahyan, who is known for his interest in camel racing, is worth $15 billion, and controls the country’s national oil company, ADNOC. As it turns out, every drop of fuel America buys for its planes at Al Dhafra—more than 200 million gallons a year, costing $5.2 billion since 2005—is purchased from the Al Nahyan–-controlled ADNOC.  Estimates are that the US Military paid $2 billion more than it would have cost to source the fuel from American Refineries!!!

Yet, according to contract documents, that money has bypassed the competitive bidding process that is supposed to accompany any -purchase—of firearms, flak jackets, or fuel—by the Pentagon.

In Abu Dhabi, “we may be essentially buying our presence,” says Alexander Cooley, a professor at Barnard College who studies U.S. basing strategy. The U.S. regularly pays rents to foreign landowners, but those payments are separate from base rights, which are government-to-government agreements.
Nearly three decades ago, after a spree of spending scandals—there was a $436 hammer and a toilet seat that cost $640—Congress passed the 1984 Competition in Contracting Act requiring competitive bidding. The principle is simple: competition drives down prices and increases quality. According to Charles Tiefer, a member of the federal Commission on Wartime Contracting, “The law mandates competition with very limited exceptions.”

Abu Dhabi has exploited one of those exemptions brilliantly. Five years ago, at the height of the Iraq War, an American fuel contractor based in Florida called IOTC challenged a $500 million sole-source contract teed up for ADNOC. The award “must be open to full competition,” a contract lawyer, Ronald Uscher, wrote in a protest letter to the federal Government Accountability Office. The Pentagon fought back, citing what it said was U.A.E. law, but IOTC’s lawyer says the military “was unable to produce any such law or decree.”

Internal Pentagon emails obtained by NEWSWEEK under the Freedom of Information Act show confusion even inside the Defense Logistics Agency (DLA), which handles procurement for the military. After a colonel questioned the sole-source process with ADNOC in 2008, the acting division chief of the agency responded, “Basically, it’s the only company we are allowed to source fuel from as per the local gov’t.” Later, a U.S. contracting officer asked, “Is there any documentation or history” about the Abu Dhabi law? Even the U.S. Embassy in Abu Dhabi said that it could not actually find a copy of the law. Only a few months later, the Pentagon issued another $918 million sole-source contract to ADNOC. In Tiefer’s estimation, “you are turning the keys to the treasury over to the sheikdom.”