Set standards for when the government should hire defense contractors

Obama directs OMB to begin contract reform

Updated: Wednesday, March 4th, 2009 | By Angie Drobnic Holan

President Obama signed an executive order on March 4, 2009, calling for an examination of federal contracts.

Obama said the amount of money going to contracts over the previous eight years had doubled, to more than $500 billion.

"In Iraq, too much money has been paid out for services that were never performed, buildings that were never completed, companies that skimmed off the top," Obama said at a event announcing the order. "At home, too many contractors have been allowed to get away with delay after delay after delay in developing unproven weapon systems. It's time for this waste and inefficiency to end."

The executive order directs Peter Orszag, head of the Office of Management and Budget, to lead a review of federal contracting procedures. By Sept. 30, Obama wants government agencies to have new guidelines for managing contracts to promote competition, as well as guidance on when contract work should be undertaken in the first place.

"The days of giving defense contractors a blank check are over," Obama said. He also said he expected to find about $40 billion in savings.

Ordering up guidelines is a far cry from actually cutting contracts. But the executive order is concrete action toward that goal. We rule this promise In the Works.

Sources:

White House Web site, Memorandum on government contracting , March 4, 2009

White House Web site, Remarks by the President on procurement, March 4, 2009