Achieving the President’s Objectives: New OMB Guidance to Combat Waste, Inefficiency, and Misuse in Federal Government Contracting

Date: October 28, 2009
Time: 2:30pm
Location: Dirksen Senate Office Building, SD-342

Between 2000 and 2008, government spending on contracts increased 149%, with $530 billion in contract spending in fiscal year 2008. Citing this increase and accompanying waste and abuse in sole-source, cost-reimbursement, and other contracting methods, President Obama, on March 4, 2009, issued a Memorandum for the heads of Executive Branch Departments and Agencies, stating that the federal government “should perform its functions efficiently and effectively while ensuring that its actions result in the best value for the taxpayers.” The President directed the Office of Management and Budget (OMB) to develop and issue by September 30, 2009, Government-wide guidance on: (1) the appropriate use and oversight of sole-source and other types of noncompetitive contracts; (2) ways to minimize risk and maximize value for all government contracts consistent with agency needs; (3) the best way for the Federal acquisition workforce to develop, manage, and oversee acquisitions; and (4) clarification of when outsourcing of government services is inappropriate. The hearing reviewed OMB’s guidance on these four directives and assess the progress OMB has made since July 29, 2009, when it issued its initial guidance to assist agencies in reviewing existing contracting practices. Additional information and materials relating to this hearing are available at http://mccaskill.senate.gov/issues/soco/docs.cfm

Member Statements




(D -


Susan M.


(R -


Paul G.

Kirk, Jr.

(D -


Robert F.


(R -


Panel 1

The Honorable

Jeffrey D.


Federal Chief Performance Officer and Deputy Director for Management

U.S. Office of Management and Budget