On March 4, 2009, President Obama issued a memo asking his government to review how government contracts are awarded and sited the need for more competition. The President claims his changes would save the government $40 billion a year.
President Obama’s March 4 memo requires OMB to issue new government-wide guidance addressing:
- The appropriate use of sole-source and other types of noncompetitive contracts and how to maximize the use of full and open and other competitive procurement processes;
- When, and under what circumstances, cost-reimbursement contracts are appropriate;
- How to assist agencies in determining the capacity and capabilities of their acquisition workforce; and
- When governmental outsourcing is and is not appropriate, consistent with Section 321 of the FY09 National Defense Authorization Act.