Tuesday, July 24, 2007

Kargil coffins bought at twice US price

7 May 2002
Rajesh Ramachandran
The Times of India

NEW DELHI: Contrary to Defence Minister George Fernandes' claim that $2,500 was the right price for the Kargil-era coffins imported by his ministry, the coffins cost less than half that amount. The Defence Supplies Centre Philadelphia (DSCP), a US defence procurement agency, buys aluminium caskets with the identical specifications for around $1,200.

In the US system, the product is called a ‘human remains transfer case’ and bears the national stock number (NSN) 9930-00-823-9805. The Times of India asked the DSCP whether $1,200 rather than $2,500 was an appropriate and reasonable price for a human remains transfer case if the Indian Army were directly to approach its suppliers.

Tom Sidor of the directorate of medical material, DSCP replied: ‘‘The answer is yes. The price that these manufacturers charge is, of course, related to the quantity being bought. We have bought quantities between 34 and 78 and paid prices ranging from $1,159 to $1,328.’’ In contrast, the MoD agreed to pay $2,500 per casket (with another $500 per casket for transport) even though it ordered 500 caskets.

Even as recently as last year, Pentagon procurers bought the same caskets for half that price. ‘‘The last award we made for this item was on October 19, 2001, for a quantity of 70. The unit price for that order was $1250.00,’’ Gregg Tatarka, the contract specialist at the directorate of medical material, DSCP, told TOI.

During the Kargil war, the ministry approved the urgent purchase of aluminium caskets to transport the bodies of martyrs. On July 28, 1999, the MoD’s price negotiating committee comprising L M Mehta and Maj-Gen S P Murgai of the Tehelka fame awarded the contract to Texas-based Buitron & Baiza on the basis of a written quotation of April 29, 1997, viz. ‘‘Item no.12342... NSN 9930-00-823-9805, unit price, $2,500 each.’’

The first consignment of 150 caskets reached India on March 6, 2000, but was rejected as over-weight. Subsequently, the Comptroller and Auditor-General indicted the MoD for paying an inflated price and not attempting to seek quotations from other suppliers. Fernandes has publicly attacked the CAG for this ruling.

Despite the existence of at least three US suppliers, a pamphlet setting out the MoD’s case and endorsed by Fernandes insists the ministry had no option but to go to Baiza & Buitron. It states: ‘‘...There is only one manufacturer now of such aluminium caskets in the world, located in the US. ...It is obvious that avenues abroad were explored but there were just no other sources’’.

Curiously, Buitron Funeral Homes or Buitron & Baiza is not a ‘‘source’’ for caskets as far as the US military is concerned. ‘‘We have two trusted sources of supply for this item,’’ Tatarka of the DSCP told TOI. ‘‘Delta Industries, PO Box 50128, Idaho Falls ID 83405, and Dayton Manufacturing, 3327 Elkton Ave, Dayton OH 45403.’’ Another firm, LaMar Construction, had also bagged an award for transfer cases.

According to Sidor of the DSCP, ‘‘Concerning Buitron Funeral Homes, I have no knowledge of them ever having bid on these items for Richmond (Defence Supply Centre Richmond, another procuring division), but I highly doubt it. We have never received bids from Funeral Homes on this item, or even on any of our human remains pouch procurements. Funeral Homes evidently are just service-oriented industries.’’

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