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Defense spending: It's not half bad The front-page story which mentions the Department of Defense spent $714 for a $47 electrical bell sounds like cause for alarm. But on closer inspection, the defense department appears to be getting better at buying. For example, the DOD received below-wholesale prices for desktop computers. The department also beat retail catalog prices and the best commercial customer deal for 6,006 engine items purchased last year. Part of the reason might be that the federal government can be a rather large customer. The defense department might get better prices when buying in bulk because it buys in bigger lots. But the way we see it, that's half the battle. Now, if the department can demand better deals when buying replacement parts piecemeal -- and avoid paying $76 for a 57¢ screw -- we can win hearts and minds much more affordably. Either that, or Uncle Sam needs to open a military hardware store.
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