OMB Cracks Down on Wasteful Outsourcing

March Announcement

WASHINGTON, March 4 (Reuters) - President Barack Obama said on Wednesday the U.S. government was paying too much for things it did not need and ordered a crackdown on spending he declared "plagued by massive cost overruns and outright fraud."

The Democrat, under fire from Republicans for the $3.5 trillion price tag for his 2010 budget plan, also took aim at predecessor George W. Bush and noted the cost of government contracts had doubled to more than half a trillion dollars over the past eight years. 

Click here to read the Presidential Executive Order

July Outsourcing Reforms

WASHINGTON, July 29 — President Obama in conjunction with the OMB formally unveiled contracting and workforce reforms that are designed to save the taxpayers at least $40 billion a year. The reforms, released today, focuses on three areas: improving acquisition, managing the multi-sector workforce, and contractor performance information.

"Today’s guidance is a major step forward in providing the federal government with the capacity to carry out robust and thorough management and oversight of its contracts in order to achieve programmatic goals, avoid significant overcharges, and stop wasteful spending,"

 Click here to read the OMB's Contracting Reforms

October Contracting Guidelines

WASHINGTON, October 27 – In an attempt to crack down on mismanaged and wasteful federal contracting practices while strengthening oversight and accountability capacity across the government, the Obama Administration has issued guidance today that requires federal agencies to increase the capability and capacity of the civilian agency acquisition workforce to ensure sufficient management and oversight of acquisition dollars.

The guidance also provides specific instructions for agencies to avoid high-risk contracts that can result in excessive costs being passed on to taxpayers.

 Click here to read the OMB's Contracting Guidelines

NASHTU Sponsored Legislation

H.R. 2104 - the Safety, Efficiency and Accountability in Transportation Projects through Public Inspection Act of 2009

                   • HR 2104 - Text of Bill

                   • HR 2104 - One Page Fact Sheet

                   • HR 2104 - Disaster Examples

                   • HR 2104 - Support Letter from Union

                    • HR 2104 - Co-sponsorship Request Letter from Union

                    • Bill Summary and Status from the Library of Congress Website

Click here to view previous Sponsored Legislation

News Stories

1. Driving Up the Cost For Public Works

February 14 (The Washington Post) - Design and engineering companies helping to build the nation's highways ran up millions of dollars in inappropriate charges at the expense of taxpayers, including bills for parties, luxury car leases and hefty paychecks for executives, according to auditors.

The bills were described by the firms as overhead costs but should not have been allowed, according to a Feb. 5 report by auditors in the Department of Transportation's inspector general's office. Click here to read article.

2. Texas Dot contracting more, at higher costs

February 1 (Austin American-Statesman) - As the state's largest user of contract services, the Texas Department of Transportation has embraced outsourcing more than any other state agency, putting almost three of every four dollars it spends in the pockets of private companies. In 2007, that amounted to about $6 billion, according to a 2009 Texas Sunset Advisory Commission report.

TxDOT has always hired out its road construction. But in recent years, it has steadily increased the number of private contractors it hires to do other work, such as road maintenance and repairs, and engineering and design work.  Click here to read article.

3. Obama:  Transportation can get economy moving

4. Big Dig firm eyed for $300M bridge job

5. California budget woes whipsaw highway contractors

6. Budget crisis threatens California public works projects

7. Obama unveils 21st Century New Deal

8. For New Transportation Secretary, a Hard Road Ahead

9. Companies to Settle for $26 Million in Tunnel Collapse
          November 15, 2008 Boston Globe

10. I-35 Bridge Tragedy May Yield New Rules
          November 14, 2008 Minneapolis Star Tribune

11. House Transportation Leaders Sound Alarm About Growing Role of Public/Private Partnerships
          November 4, 2008 Transportation and Infrastructure Committee Press Release

12. Costly Consultants, Big Budget Lead to Price Tag
          October 26, 2008 Lincoln Journal Star

13. Orange County Toll Road Agency Seeks Federal Bailout
          October 17, Los Angeles Times

Events

NASHTU 11th Annual Conference

April 27-29, 2010

Hyatt Regency - Washington, D.C.

 Lobby Congress

Hear Latest from Congressional, Administration Leaders

Interesting Panel Discussions & Workshops

Congressional Reception

Share Insights from Throughout the U.S.

...and much more

Details to follow.  Please call 916-446-0584 or email nashtu@nashtu.us if you have any questions.

Click here for previous NASHTU Conference Highlights