What's New
After years of widespread waste, fraud, and abuse that has cost taxpayers billions, Congress and the Obama administration are getting serious about reforming federal contracting.
The most recent development has been the creation of the Do Not Pay list, the result of a new database that would screen contractors, subcontractors and businesses, or individuals applying for federal contracts to see if they have been convicted of fraud, operate phony businesses, owe back taxes or other funds to the government, or otherwise would be ineligible for government payments or benefits.
President Barack Obama ordered a government-wide review of the contracting process for all federal agencies. The result: saving $40 billion annually by Fiscal Year (FY) 2011, through terminating unnecessary contracts, strengthening acquisition management, ending the overreliance on contractors, and reducing the use of high-risk contracts across government agencies.
In addition the President signed an Executive Order earlier this year to ensure that any company pursuing contract work with the federal government has paid its taxes. Fulfilling basic responsibilities was a focal point of U.S. PIRG’s testimony on contracting reforms before the Office of Management and Budget last year. We’ll follow the implementation of the President’s guidance and Executive Order to make sure they have the desired effect going forward.
