Snap Fact #104

Post date: Feb 17, 2012 11:49:20 PM

Snap Fact #104

President Obama Put A Stop To The Bush Administration's Reckless Spending On Government Contracts!

In order to balance the budget and promote accountability and competition in the marketplace, President Obama pushed for government contracting reform to reduce fraud and wasteful spending. 

According to the White House, “Since 2001, spending on Government contracts has more than doubled, reaching over $500 billion in 2008. During this same period, there has been a significant increase in the dollars awarded without full and open competition and an increase in the dollars obligated through cost-reimbursement contracts. Between fiscal years 2000 and 2008, for example, dollars obligated under cost-reimbursement contracts nearly doubled, from $71 billion in 2000 to $135 billion in 2008. Reversing trtm-long trends away from full and open competition and toward cost-reimbursement contracts could result in savings of billions of dollars each year for the American taxpayer.” 

Just one example of the myriad of run away abuses of the public trust involving companies such as Halliburton, which Dick Chaney was its CEO from 1995 - 2000, shortly before he tapped himself to run for vice president, was reported by CBS News. "Halliburton has contracts worth more than $1.7 billion for its work in Iraq, and it could make hundreds of millions more from a no-bid contract it was awarded by the Army Corps of Engineers, The Washington Post has reported. According to The Post, while Cheney was defense secretary the Pentagon chose Halliburton subsidiary Brown & Root to study the cost effectiveness of outsourcing some military operations to private contractors. Based on the results of the study, the Pentagon hired Brown & Root to implement an outsourcing plan. 

President Obama learned about this boondoggle and took action. In order to help cut our spending deficit and promote fair trade in the government contracts, President Obama ordered the federal government to use an open and competitive process to pick contractors. As a result, the government contracting reform will save America an estimated $19 billion.