Retired Military Officers Return to Pentagon as High-Paid Consultants

May 4, 2010 -- The Pentagon is more than a month late in releasing its investigation into its contracts with retired officers who serve as paid advisers, prompting concern among members of Congress. They passed a measure last week that would limit the use of such "senior mentors."

Congress, as part of the current defense spending bill, required the Pentagon inspector general to report on the military's use of senior mentors by March 31.

"It is a concern," said Rep. Robert Andrews, a New Jersey Democrat who chairs the Defense Acquisition Reform panel, of the missed deadline.

He added that he has long been worried about what he called the "revolving door" through which retired officers return to the military to pitch private-sector goods and services.

The inspector general is working with members of Congress to determine how best to answer their questions regarding senior mentors, said Gary Comerford, a Pentgaon spokesman.

A USA TODAY investigation found that some mentors earned up to $440 per hour — in some cases nearly five times their active-duty pay.

Many retired officers also worked for defense firms doing business with the Pentagon. They collected pensions that totaled more than $220,000. Most mentors were employed as subcontractors to large defense firms, which shielded their identities from the public.

Defense Secretary Robert Gates last month ordered an overhaul of the program. He ordered that the Pentagon hire the retired officers directly, capped their pay and required that they disclose outside interests. His new policy also barred them from participating in matters in which they have a conflict of interest.

Oregon Democrat: Use of Senior Mentors Needs Transparency

Last week, Rep. Kurt Schrader, an Oregon Democrat, won passage of an amendment that would make Gates' policy federal law.

Schrader said he was concerned that the senior mentor program had been conducted in a "fairly clandestine way." He offered the amendment to guarantee that mentors conduct their business transparently, he said.

The military has legitimate need for the mentors' expertise, Andrews said. But their use must be done in a way that eliminates conflicts of interest, he said.

"It's kind of hard to wear two hats," Andrews said.

If the Pentagon can satisfy Congress that Gates' policy eliminates conflicts of interest and the program is run transparently, Schrader's amendment could be altered before it reaches President Obama for final approval, Andrews said.

The amendment lets Congress put its concern about mentors "on the record," Andrews said.