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Wednesday
Oct282009

New Govt Contracting Rules Would Save Taxpayers Billion Says White House Budget Official

By Meagan Wiseley - University of New Mexico/Talk Radio News Service

Deputy Director of Management at the Office of Management and Budget (OMB) Jeffrey Zients said Wednesday that the OMB's guidelines for combating waste, inefficiency and misuse in Federal Government contracting will save $40 billion of taxpayer dollars through "better acquisition program practices."

"We will take the steps necessary to achieve the best mix of public and private labor resources to serve the American people," Zients said. "We will support a strong and well-equipped acquisition workforce," he added.

Zients' testimony came before the Senate Committee on Homeland Security and Governmental Affairs Subcommittee on Contracting Oversight.

Subcommittee Chairman Sen. Claire McCaskill (D-Mo.) said she is seriously concerned with the OMB's new guidelines.

McCaskill said the OMB has given government agencies the task of developing their own plans for improving contracting, but has given "very little concrete guidance as to how achieve necessary reforms."

Added McCaskill, "OMB's guidance doesn't provide a clear way forward."

On March 4, 2009 President Barack Obama tasked the OMB and other federal agencies with developing guidelines to "stop outsourcing that should be performed by the government, and open up the contracting process to small businesses."

At the time, the President argued that such reforms would save American taxpayers up to $40 billion each year.

McCaskill warned that if lasting reforms on government contracting are not achieved, "government contracting is just going to be business as usual."

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