Sunday, February 5, 2012

What does Obama mean when he says we are going to reform procurement?

I understand what procurment is and why companies use procurment departments to save on costs but I do not understand what Obama means when he says he want to reform their processes. Can someone clarify?What does Obama mean when he says we are going to reform procurement?Bush made a lot of liberal-type changes to the procurement processes, including no-bid contracts, cost-plus contracts, and contract "bundling."



No-bid contracts are simply handing government work over to cronies. Cost-plus contracts reward inefficiency. Contract bundling shuts out all but the largest bidders, by coupling items like building a fleet of military tanks with a purchase order for 10,000 toilet seats. Boeing can do both, but Joe's Toilet Seats Inc can't.What does Obama mean when he says we are going to reform procurement?Most government agencies don't always buy from the cheapest



source~maybe he is trying to be more cost efficient but what



happens when the sources turn out to be from foreign countries



who can produce the goods and services for far cheaper then



we can in the USA?~~that is a puzzlerWhat does Obama mean when he says we are going to reform procurement?Well, I do know that all medicines purchased by the VA Medical centers are purchased at a much lower cost than outside, perhaps he is thinking about incorporating that into medications that people on medicare will need. That would be a substantial savings, over the non competitive program that bush signed off on.

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