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Washington Insider

The Office of Management and Budget cited a sharp increase in the dollars awarded under cost-reimbursement contracts under the Bush administration. President Obama has pledged to sharply limit the use of that contract type.

While the dollar value of cost-reimbursement contracts nearly doubled under President Bush, OMB’s figures show those contracts were actually used less often. In 2008 cost-type contracts accounted for 25% of procurement dollars, down from about 35% in 2000.

Fixed-price contracts, the Obama administration’s preferred contract type, were used for about 60% of procurement spending in 2008.

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The outgoing Pentagon acquisition chief warned Congress against overregulation of defense contracting.

“The process we’re heading further into is a tax code-like governance process for defense acquisition,” said John Young, undersecretary of Defense for acquisition, technology and logistics in the Bush administration. He spoke to a media roundtable April 26, according to Government Executive magazine.

While Congress is considering several proposals to rein in cost overruns, Young warned, “People run programs, not documents and processes. You need to have good people and leave room for judgment to get the best deal for the taxpayer.”

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The Senate has confirmed Ashton Carter to succeed Young as assistant secretary of Defense for acquisition, technology and logistics. Alabama’s two Republican senators delayed his confirmation because of their concerns about the competition for aerial refueling tankers. DOD reopened that competition last year after a protest by the losing bidder, Boeing.

The winning bidder, a consortium including Northrop Grumman and the European manufacturer EDS, had planned to build the planes in Mobile, AL.

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The Small and Emerging Contractors Advisory Forum presented its first annual awards on April 16:

•Contractor of the year (under $6 million): Culmen International LLC

•Contractor of the year ($6 million to $12 million): Information Systems Consulting Group Inc.

•Contractor of the year ($12 million to $25 million): iLuMinA Solutions Inc.

•Small business partner of the year: A-Tek Inc.

•Government advocate of the year: Michael Sade, GSA.


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