Today, President Obama announced that he wants new rules to reform the federal contracting system and cut as much as $40 billion in federal spending. Citing procurement overruns, fraud, sole source contracts, a lack of transparency and accountability, and outsourcing concerns, the President hopes to change the old ways of doing business in Washington. His policy shift will hopefully save money and improve government services. This effort makes good on a campaign promise to save billions of dollars.
We will have to wait to see how today's announcement will trickle down through contracting wonks and work in practice. This step, however, is great news given that budgets are getting tighter, and that the government spent over $534 billion for goods and services last year, including contracts for companies that have been convicted of serious misconduct.
-- Scott Amey
UPDATE: Click here to watch a video of the President's remarks.