On stage shoulder to shoulder with his former nemesis Senator John McCain, President Obama signed a presidential memo yesterday establishing fixed price government contracts as the new federal standard, even for defense procurement. Blasting rampant waste and fraud in Iraq, Kuwait and Afghanistan under cost-plus federal contracts, as uncovered by more than 140 investigations of those dealings, the memo directs OMB chief Peter Orszag to issue guidance by July 1 for review of all government contracting and identification of wasteful and inessential contracts which can be terminated. The second deadline, September 1, is for an overhaul of all federal procurement to increase contracting oversight, reduce privatization of government functions, and reestablish fixed price competitive bids as the standard for federal procurement.
The moral is, if you are bidding on federal projects, have a sharp pencil, but know what you are doing, because the risk of loss will be on the contractor rather than on the government.
The moral is, if you are bidding on federal projects, have a sharp pencil, but know what you are doing, because the risk of loss will be on the contractor rather than on the government.
