Truemors
is reporting from
Member
NP Rank:
NP Rank:
Get smart government
Share: 
by YankeeJim | February 4, 2011 at 05:49 am
124 views | 0 Recommendations | 3 comments
Photos
Buying less, buying smarter with a lot more room to get smarter
This article discusses the effect of contractors on the cost of government. Here is a basic choice government executives must make as well as Congress, is it better to have government employees perform work or to hire outside contractors? There are cost and performance profiles associated with both and there are legislated processes governing the cost benefit analysis.
Things to consider
1. If the nature of work is long-term and repetitive, and if automation can’t replace human performance, then contracting the work out may be more cost effective because government is not stuck with an increasingly more expensive work force whereas contractors can hire and replace at will to control costs.
2. If the nature of work is dependent on accrued knowledge and experience, and increasing skill and proficiency, one way to preserve the knowledge base is through permanent hire.
3. If the nature of work requires increasing dependence on the latest knowledge and skill sets, employing contractors may ensure a fresher set of skills.
4. If the aim of government is high performance and the lowest cost, flexibility in making these decisions is essential.
I cover this in my book Smart Data, Enterprise Performance Optimization Strategy ©2010 Wiley Publishing.
“Deficit-cutters must also weigh cost of contractors
By Joe Davidson
Washington Post Staff Writer
Thursday, February 3, 2011; 7:34 PMWhen the Obama administration released figures showing that Uncle Sam spent less on outside contractors for the first time in 13 years, the data pointed to a little- publicized difference in the way Democrats and Republicans approach deficit reduction.
Spending on contractors may not be as sexy as other items, but it's a difference that has serious implications for federal employees.
In fiscal 2010, $535 billion was spent on those services, $15 billion less than the year before, officials at the Office of Management and Budget said Thursday.
"Under the prior administration, spending on government contracts more than doubled," said Jeffrey Zients, OMB deputy director for management and the administration's chief performance officer.
They were blowing their own horns while taking a swipe at Republican policies, but the money they were talking about is significant.
If the Obama administration's spending on contractors had continued at the Bush administration's rate, the government would have spent $80 billion more in 2010, according to the OMB.
"We have reversed the trend of uncontrollable growth, and we're saving money and making sure every taxpayer dollar is being well spent," Zients said.
The key, added Daniel Gordon, OMB's administrator of federal procurement policy, was "buying less and buying smarter."
Deficit-cutters must also weigh cost of contractors
By Joe Davidson
Washington Post Staff Writer
Thursday, February 3, 2011; 7:34 PMWhen the Obama administration released figures showing that Uncle Sam spent less on outside contractors for the first time in 13 years, the data pointed to a little- publicized difference in the way Democrats and Republicans approach deficit reduction.
Spending on contractors may not be as sexy as other items, but it's a difference that has serious implications for federal employees.
In fiscal 2010, $535 billion was spent on those services, $15 billion less than the year before, officials at the Office of Management and Budget said Thursday.
"Under the prior administration, spending on government contracts more than doubled," said Jeffrey Zients, OMB deputy director for management and the administration's chief performance officer.
They were blowing their own horns while taking a swipe at Republican policies, but the money they were talking about is significant.
If the Obama administration's spending on contractors had continued at the Bush administration's rate, the government would have spent $80 billion more in 2010, according to the OMB.
"We have reversed the trend of uncontrollable growth, and we're saving money and making sure every taxpayer dollar is being well spent," Zients said.
The key, added Daniel Gordon, OMB's administrator of federal procurement policy, was "buying less and buying smarter."”
Advertisement
What is NowPublic?
NowPublic lets people work together to cover news events around the world.
Most Recommended Comment
"thirty-aught-six" (not verified)
Most RecentMost Recommended Comments (3)
at 05:52 on February 4th, 2011
Get smarter, Mr. President.
- Sign In or Join to post comments
"thirty-aught-six" (not verified)at 09:24 on February 4th, 2011
Let's not forget the more than 150,000 new and permanent public service jobs [and growing] and their 3.9% wage and benefit increase that will offset any need for temporary contractor positions. More of the government showing the right hand while hiding the left hand.
at 13:52 on February 4th, 2011
I am shifting my strategy to take the case to the people and try to equip a new generation to think about their government in a more intelligent manner. We the People are to blame for letting it get out of control.