The Pinal County Sheriff's Office has collected millions of dollars' worth of surplus military equipment that is intended for law-enforcement use and distributed some of the gear to non-police agencies while preparing to sell other property as a budget booster. Both practices are banned by the Pentagon.

According to records obtained by The Arizona Republic, in the past two years, Sheriff Paul Babeu's office has received more than $7 million worth of Humvees, fire trucks, guns, defibrillators, barber chairs, underwear, thermal-imaging scopes, computers, motor scooters and other items through the Defense Logistics Agency, which provides the excess military property free to crime-fighting agencies.

Surplus equipment | Ariz. Public Safety Procurement Program

The merchandise is made available to more than 17,000 police and sheriff's departments nationwide as a way of improving public safety while saving taxpayer dollars. Last year, nearly $500 million worth of new and used items were distributed by the agency -- more than double what was requisitioned in fiscal 2010.

Federal regulations require the surplus items to be issued and used exclusively for law-enforcement purposes, especially counterdrug and counterterrorism efforts.

Yet the Sheriff's Office, which helps oversee the program in Arizona, has doled out hundreds of thousands of dollars' worth of equipment that it never used to non-police agencies and a business, saying the items are merely on "loan" and might occasionally be used to assist deputies.

The rules also allow police to dispose of or sell some goods after at least one year of usage but strictly ban them from obtaining the hand-me-down equipment for the purpose of fundraising.

But internal e-mails obtained through public-records requests by The Republic show sheriff's officials touting their ability to get products from the Defense Department at no cost and to fortify their finances by selling the goods at auction. In a budget presentation to Pinal County supervisors in March, Babeu said he intends to balance his budget in part by auctioning equipment procured from the military.

Sheriff's e-mails also show that a top aide to Babeu encouraged employees from Southwest Ambulance, a private company, to visit the Sheriff's Office to see "how much stuff is available" from the Defense Department. A subsequent message contained a photograph of Babeu standing behind a pair of defibrillators the company received free from the Sheriff's Office, shaking hands with a Southwest manager.

The Pinal County sheriff's employee responsible for acquiring military surplus helps oversee the program in Arizona, authorizing his own requisitions along with those of other agencies statewide.

Babeu and his staff declined interview requests but defended the program in e-mails, saying military supplies reduce the burden on taxpayers while making police work safer and more effective -- especially for deputies working dangerous anti-smuggling missions in remote areas.

Tim Gaffney, Babeu's communications and grants director, said the merchandise has been a boon to other Pinal County departments and non-profit agencies. He noted that the sheriff's program got a glowing audit last year from the Defense Logistics Agency, which filmed a demonstration video for Congress showing how Pinal County benefits from excess military gear.

There is no question that the Sheriff's Office has put many items to law-enforcement use. A military helicopter, night-vision goggles, an armored vehicle and up to 18 Humvees were acquired to hunt smugglers and illegal immigrants in the desert. Kitchen equipment, blankets and medical supplies are used in the county jail.

But critics say Babeu, who is seeking re-election and until last month was a candidate for Congress, also has played a benefactor role to curry political favor with key community leaders, handing off equipment to their agencies and non-profit organizations.

One example of the largesse: Steve Kerber, chief of the Regional Fire and Rescue Department of Pinal County, said the sheriff recently delivered a truckload of military equipment to a meeting of area fire chiefs, inviting them to grab whatever they wanted.

"That's advertising for Paul Babeu because he's now the Santa Claus of the neighborhood," said Norman Jones, a retired DPS officer who monitors the Sheriff's Office as a citizen watchdog. "Why are you procuring farm tractors? ... It's an abuse."

Jones and other critics say that by requisitioning unneeded supplies the Sheriff's Office may be depriving other police agencies of equipment.

Matt Van Camp, a Payson police detective, was appointed by Gov. Janet Napolitano in 2008 and reappointed a year later by Gov. Jan Brewer to coordinate distribution of military surplus in Arizona. After being advised last month of some of The Republic's findings, he said he would raise questions with Pinal County but insisted Babeu's operation is "in full compliance" with the program.

"They use the equipment properly," he said. "They dispose of it properly. They're just very good."

On Friday, Van Camp said he does not know of any police agency utilizing the program as Pinal County does. He said The Republic's inquiries had spawned a policy review. "It's a good discussion we're having nationally, and I think there's going to be guidance coming," he added.

Earlier this month, after the newspaper began raising questions about Pinal County's use of surplus military gear, the Defense Logistics Agency, which is responsible for program oversight, gave Babeu's office an award for "Superior Achievement in Fiscal Stewardship."

An agency spokesman did not answer when asked if such an award had ever previously been issued. The agency also has yet to respond to a request for public records concerning the award.

However, after learning about The Republic's findings, agency public-affairs chief Kenneth MacNevin sent an e-mail saying the Defense Logistics Agency is looking at Pinal County's use of the program.

"If it appears policies or processes of our program were not being adhered to we will undertake a more formal inquiry to determine the cause and then take appropriate action to resolve the matter," MacNevin said. "We will not speculate on the matter until more is known."

He said documents obtained by The Republic may suggest "potential violations of 1033 program," but e-mails can be misunderstood or taken out of context.

He said more than 30 Arizona police agencies have been suspended or terminated for failing to meet program standards and nine remain under suspension. Federal officials did not identify those agencies.

One example

In e-mails last August, sheriff's spokesman Gaffney advised Holly Walter, communications and media manager for Southwest Ambulance, that Babeu's office had just obtained defibrillators for her company.

"Usually about twice a month we are getting surplus equipment from the military and giving it to other entities," Gaffney wrote. "If there's anything else you can use, let us know. This includes furniture, or any other medical equipment. It's easy to get and best of all it is free."

Southwest Ambulance, a for-profit subsidiary of Rural/Metro Corp., provides medical transportation for more than 40 communities in Arizona. It is not a law-enforcement entity.

E-mails indicate the company agreed to paint a 5-ton military truck acquired by the sheriff from the Defense Department. In one message, a sheriff's employee asked Walter for a design scheme similar to patrol cars, adding, "We would like 'Sheriff Paul Babeu' painted on both sides of the hood."

Walter replied, "Not a problem at all."

In an interview, she said her company received a Humvee and a truck, as well as medical equipment -- all with the understanding that Southwest Ambulance sometimes might use the supplies to assist the Sheriff's Office on search-and-rescue missions, at Country Thunder and other events.

She says the company has not yet painted the sheriff's military truck.

In a written explanation to The Republic, Gaffney described Southwest Ambulance as a "public safety partner."

He said deputies sometimes are allowed to conduct training in the company's Mesa headquarters, and the company might need furniture for those sessions.

A lot of stuff

Just over 100 Arizona law-enforcement agencies have signed up for military surplus through the so-called 1033 Program overseen by the Pentagon's Defense Logistics Agency. Last fiscal year, state records show, the agencies acquired more than $14.6 million in merchandise usually referred to by the acronym DRMO. (The Defense Logistics Agency used to be known as the Defense Reutilization Marketing Office.)

The Pinal County Sheriff's Office, which began acquiring items in 2010, has taken in so much military gear -- more than $7 million worth -- that Babeu's staff requisitioned through the program a diesel truck, multiple trailers and a forklift to transport the gear from military depots nationwide.

Gaffney acknowledged that the sheriff has placed surplus vehicles and equipment with non-government organizations that don't enforce laws. But he said that property remains part of the sheriff's inventory and is "on loan" to other agencies -- "strategically placed" around the county for use in emergencies. He said the borrowing agencies provide vehicle insurance.

An 11-page agreement that Babeu signed to participate in the military-surplus program says merchandise may be procured only by agencies "whose primary function is the enforcement of applicable federal, state and local laws and whose compensated law-enforcement officers have powers of arrest and apprehension."

When asked if the practice by the Sheriff's Office of loaning equipment to other agencies comported with program rules, a spokesman for the Defense Logistics Agency said, "Property should not initially be provided to other agencies unless they are also involved in law enforcement."

Officials at eight other police agencies contacted by The Republic said they do not requisition surplus military items for non-law-enforcement agencies and don't acquire gear to supplement budgets.

Maj. Leon Wilmot said the Sheriff's Office in Yuma County, which is adjacent to Pinal County, obtains about $250,000 in equipment annually -- patrol rifles, Humvees, ballistic helmets. None of the items is passed on to non-police organizations, Wilmot said, adding, "It's a cost-saver, and that's why we use it."

Phil Case, budget director for the Arizona Department of Public Safety, said his agency has requisitioned $2.1 million in military-surplus goods since the early 1990s. DPS has not lent items or augmented its budget by selling surplus military gear: "We have never contemplated that, and I am not aware that it would be permissible," Case said.

A distinct advantage?

Surplus military equipment is listed online at a secure Defense Department website, and requests must be approved by designated state officers as well as the federal Law Enforcement Support Office in Battle Creek, Mich., which is part of the Defense Logistics Agency.

Babeu appears to have an advantage over other law-enforcement officials in acquiring surplus military gear: His grants administrator, Tom Gaupel, was appointed by Van Camp, the Payson police detective, last year to help oversee and authorize military-surplus requisitions in Arizona.

In a September e-mail obtained under Arizona's Public Records Law, Gaffney advised a colleague that Gaupel would be able to cherry-pick excess military gear because it is requisitioned on a first-come, first-served basis.

"This will benefit us greatly as we can start approving our own requests (for merchandise)," Gaffney wrote in his message to Chief Deputy Steve Henry. "Tom usually is up at midnight when stuff becomes available (online). ... We can apply and approve within minutes of items becoming available."

Gaffney added that the Sheriff's Office anticipated getting so much Defense Department equipment that a detention aide would be needed full time to pick up the property from around the country. "The financial impact for us would be tremendous," he wrote.

Van Camp said he does not believe Pinal County has an improper advantage in obtaining military supplies. He said Gaupel was appointed to be Arizona's "point of contact" for surplus acquisitions because of his even-handedness.

Selling the stuff

Nationally, the military-surplus program has come under criticism for various reasons. Federal investigators previously have found the program to be riddled with fraud and abuse.

Keeping track of the equipment is another concern. In 2003, a Defense Department inspector general's audit declared 1033 Program records were not reliable after finding incorrect or inadequate documentation in about three-quarters of the transactions analyzed.

Two years later, a report by the Government Accountability Office -- the research arm of Congress -- concluded that the Pentagon "does not have management controls in place" to avert waste, abuse and fraud in its reutilization program. Investigators identified "hundreds of millions of dollars in reported lost, damaged, or stolen excess property ... which contributed to reutilization program waste and inefficiency."

The 1033 Program regulations as spelled out in Arizona's "Plan of Operation" say the procured equipment must be used by agencies within six months and remain in use for at least a year. The surplus property is available exclusively "for the current use of authorized program participants (and) it will not be issued for speculative/possible future use. Property will not be obtained for the purpose of sale ... or to otherwise supplement normal LEA (law enforcement agency) budgets," the document says.

Babeu, who retired from the Arizona Army National Guard as a major two years ago, signed a document agreeing to the rules. Yet public records and e-mails suggest plans by his department to auction items obtained through the program.

In a January e-mail to Gaupel and the sheriff's budget director, Gaffney asked about progress setting up auctions and wondered if military property could be sold on eBay. "It would help our budget greatly if we can start selling items," he said.

In February, Gaupel advised Gaffney that a semitruck and 40-foot trailer available from the military depot in Tucson were in great condition, adding, "We can use them for one year and sell for big money. I am leaving my house at 4 am to beat any other agency."

In March, Babeu told Pinal County supervisors that he had acquired a huge amount of military goods that would be sold to help balance his office's $47 million budget. He said auctions were to begin in April, and proceeds "could crest 200,000 (to) a half-million (dollars) in a period of six months."

Jones, the retired DPS officer, said the Pinal County practice is outrageous. "They hoard stuff," he said. "They've opened up a little swap meet."

Steve Gagnon, Colorado's 1033 Program coordinator, said no agency in his state makes money selling surplus military items. "That would be inappropriate," he said. "You're not supposed to pick it up just to turn around and sell it."

Wilmot, of Yuma County, agreed: "You're not allowed to do that."

Questions of oversight

State and local officials are required to maintain an "audit trail" for each item and conduct periodic inventory checks to ensure that federal properties have not been sold, stolen or misappropriated.

The 1033 Program also requires police agencies to declare the intended law-enforcement use for each item. Records supplied by the Sheriff's Office and Van Camp, the Arizona program coordinator, do not explain the need for many of the items acquired -- from computers to meat slicers to motor scooters.

In addition, federal regulations require guns, certain vehicles and other equipment to be returned to the Defense Department after use. Records show that as of mid-April, the Sheriff's Office had not returned a single item. It is unknown how much is still in use.

In response to questions, the Defense Logistics Agency reiterated via e-mail the written rules of the program. A spokesman said that for security reasons information is not subject to public review even though the intended use of the equipment never references specific tactics or law-enforcement investigations.

Van Camp said he conducts "spot check" inventories by phone, asking Arizona agencies to confirm that items have not been misused, lost or stolen. However, he said, there are no resources to visit police departments to verify that information.

He also cautioned that even items with no obvious crime-fighting purpose may have legitimate policing value. For example, he said, deputies could use a requisitioned barber chair for haircuts in a break room. Or they might need 1,800 T-shirts for training exercises that damage clothing.

Free firetruck

During a single week in August, records show Gaupel, an official over Arizona surplus requisitions, procured a semirig, bulldozer and other expensive gear for the Pinal County Sheriff's Office. "I also was awarded this awesome fire truck worth $175,000," he said in an e-mail to Gaffney which included a photo of the shiny, yellow engine.

Gaffney answered, "Great job Tom this will make for another great pool car...hahaha... This week alone sounds like you brought in nearly 1.7 million through DRMO."

The Pierce Dash pumper, obtained from Puget Sound Navy Shipyard in Washington state, had been driven just over 50,000 miles.

Gaffney asked how the sheriff would use a fire engine: "Whats (sic) the plans for the fire truck?"

The pumper did not spend one day in the sheriff's custody. Instead, it went straight to the Regional Fire & Rescue Department of Pinal County. "We ran up there and got the truck and drove it back," said Kerber, the fire chief, adding that his department is paying for insurance on the vehicle.

Regional Fire & Rescue is a non-profit agency that charges an annual subscription to about 8,000 residential and commercial clients.

Kerber said he has the vehicle on loan for a year, after which the Sheriff's Office will transfer title to the fire department. He said Babeu's generosity has been "a blessing," rendered without any request for political support.

To date, according to Gaffney, firefighting organizations in Casa Grande, Florence, Apache Junction and a dozen other communities have received military surplus equipment from the sheriff.

Asked to explain the law-enforcement purpose of a pumper truck, Gaffney said it might be deployed if a deputy is injured in the line of duty, or if the sheriff's helicopter crashes at the airport.

Capt. Mike Waring, who coordinates the New Mexico State Police military-surplus program, said he can't imagine requisitioning a firetruck from the military.

"The program is specifically for law enforcement," he said. "You can't arrest a fire."