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Impact on Acquisition: President’s 2012 Federal Budget
February 14, 2011 at 8:41 pm #123107
I’ve been reading through the President’s budget proposal for FY2012 and ran across this commentary:
Save Billions of Dollars in Contracting.
After over a decade of dramatic contract growth, this Administration has turned the tide and reduced contract spending. In March 2009, the President charged Federal departments and agencies with saving $40 billion annually by 2011 through terminating unnecessary contracts,strengthening acquisition management, ending the over-reliance on contractors, and reducing the use of high-risk contracts.
Just one year after the President directed his Administration to cut contract costs, agencies spent $80 billion less in 2010 than they would have spent had spending continued to grow at the same rate it did from 2000 to 2008. In fact, for the first time since 1997, overall contract spending declined. In 2012, the Administration will continue to work with agencies on furthering their contracting reform efforts, with a particular focus on service contracting, and continue to explore ways to gain additional savings.
In addition, the Administration will require agencies to continue their efforts to reduce high-risk contracting for new contract awards. Finally, the Federal Government will continue to improve theintegrity and transparency of the procurement system by giving the public access to the Federal Awardee Performance and Integrity Information System, a one-stop source for data on a contractor’strack record and business ethics. For the first time, taxpayers will be able to see the information that contracting officers use to protect the public’s resources from the waste and abuse of contractors who are proven bad actors.
Any thoughts on any of these changes?
February 14, 2011 at 8:54 pm #123113
If agencies focus on their mission and not on support activities FTE and funds may move from support operations, such as OCIO, to business line operations. Go to the Cloud. It is a new paradigm not just for how to deliver technology to serve the business lines, it is a way to direct resources to business transformation. In sourcing through the cloud agency CIO’s should be able to eventually slough off the integrators. There is a road map to follow to such a maturity. Along the way, through re-use and collaboration in buying IT costs may be driven down, also, there will not be a need to lock into a long term leases when agencies may buy by the drink. Imagine the data centers that agencies do not need to build. There is a need to educate both the vendor and government contracting communities as to how such spending could best work for both communities.
February 15, 2011 at 3:31 pm #123111
There are two sides to this coin. Certainly acquisition professionals should search for savings in any contract. It is part of the key Values of the profession to be “responsible stewards of public funds”.
The other side of the coin is that spending of public dollars, if done properly, could be harnessed to drive a struggling economy.
February 16, 2011 at 4:20 am #123109
If you take a look at the data, I think there is definitely some savings there, but the data is not filtered or factored by ARRA funding. Agencies should continue to find ways to train the acquisition workforce, lessen dependencies on high-risk contracts (T&M), improve requirements development, and improve contract oversight and governance through effective program management.
Public access to FAPIIS is a great step forward, although I am disappointed that the Administration reversed itself on a key transparency initiative with the proposal to amend the Federal Acquisition Regulation and enable the online posting of contracts and task and delivery orders. Oddly, these type of initiatives were supported in S. 3077 by then Sen. Obama. As Scott Amey, General Counsel for the Project on Government Oversight, commented, “I guess it’s harder to promote change from inside the White House.”
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