All it Takes is One

I'm amazed at how true the saying "One bad apple spoils the whole bunch" is when applied to a work environment. I love my job. I find it challenging, interesting, and can see the impact it has on others. Everyday I learn something new or have a new experience. I also love working for BuCorps. My work group is pretty amazing, too. We've got a great mix of energetic young go-getters and more experienced experts. Our customers are great and consistently push us towards excellence.
Nearly a year and a half into my job, I'm getting to the point where I am useful in a technical sense. No longer do I constantly wander around trying to understand things. Now, I get what it is that we do. The basics no longer befuddle me and I've had the opportunity to get my hands deep into some technical problems and help find solutions independently. Understanding how everything works and being able to think about it intelligently is a great feeling and comfort. I am thankful to have had great mentors help me get up to speed so quickly.
This technical knowledge has come with a price. My technical knowledge is great enough that I understand what my teammates are doing and can talk with them about it. I'm also at the point where I can tell when someone is bullshitting their way through a day. Everyone, I think, has those days where they want to go through the motions of the day without thinking. Lack of sleep or an inability to focus on work hits everyone at some point. It is part of being human. But, I work with one guy who is like that every day. This guy has been with BuCorps for 6 years and came in with technical experience. But, I can count the accomplishments this guy has had for the past 6 months on one hand. And, the accomplishments aren't big. They're things I did 6 months into the job. The guys work output isn't due to a lack of technical work to be done. He's even been assigned to lead two efforts. Three months after the assignment, no gains have been made on either project.
The lack of progress, or willingness to work towards progress, is incredibly frustrating to me as a junior employee. I work for less than half of what this individual makes and achieve more results and work harder than I have ever seen him. Several occasions have cropped up where he has asked me to fix a problem he created.
It blows my mind that this guy has been allowed to operate like he does. The rest of the team is busting their ass to get work done while this individual sits at his desk, checks Yahoo mail, and sometimes types on the keys. All without getting anything done. I'm not sure if my boss realizes what the game is. We submit monthly status reports. I don't know what his could possibly contain. That, for me, is the most frustrating part. Everyone else on the team has to work harder because this guy does nothing and I'm not sure if our boss is technical enough to understand. How do I manage this? Should I ignore it and let this guy keep sliding through life? Do I call the boss out on the lack of results the guy generates? One would think that eventually he'd get busted but despite several screw ups all still seems well. His lack of performance and desire to work are killing my morale.