According to an Associated Press analysis of 570 military construction and repair projects worth $420 million and paid for with cash from the American Recovery and Reinvestment Act appropriations, no-bid contracts awarded to small minority and disadvantaged contractors under federal set aside programs are priced about 3% less than designer budget estimates, while competitively bid military contracts funded from the same source are coming in about 11% under designer budget estimates. Given the fact that the no-bid deals represent 25% of the total spent so far, and the total stimulus appropriation of $7.4 billion for this work, at present rates the use of no-bid awards will end up costing taxpayers $148 million dollars in wasted stimulus cash. I think I recall a Presidential promise to put an end to no-bid contracting by the military and other federal government agencies.
Meanwhile, three cabinet officials were hauled before the House Budget Committee today to testify about the effects of the stimulus appropriations in the economy. Agriculture Secretary Tom Vilsack testified that his department has increased food assistance to 33 million people, Transportation Secretary Ray LaHood said commitment of $22.3 billion to transportation projects has put people back to work in 24 states, and Interior Secretary Ken Salazar said his department will spend $305 million to create 3,000 jobs.
Meanwhile, three cabinet officials were hauled before the House Budget Committee today to testify about the effects of the stimulus appropriations in the economy. Agriculture Secretary Tom Vilsack testified that his department has increased food assistance to 33 million people, Transportation Secretary Ray LaHood said commitment of $22.3 billion to transportation projects has put people back to work in 24 states, and Interior Secretary Ken Salazar said his department will spend $305 million to create 3,000 jobs.
