This is historical material, "frozen in time." The web site is no longer updated and links to external web sites and some internal pages will not work.

FOR IMMEDIATE RELEASE March 16, 1993

CLINTON ADMINISTRATION REVIEWS GOVERNMENT CONTRACTING POLICIES

As part of the Clinton Administration's effort to improve management of the Federal government, Office of Management and Budget Director Leon E. Panetta is asking department and agency heads to review their policies for contracting services to outside businesses and organizations.

In a letter sent today to the 14 cabinet secretaries and the directors of the Environmental Protection Agency, the General Services Administration, and NASA, Panetta called for "a fresh look" at contracting, which accounts for over $100 billion in Federal expenditures annually, an amount Panetta called a "staggering sum."

He asked the agency heads to complete their reviews by June 30 and to focus on three issues in particular:

Are existing contracts "accomplishing what was intended?"
Are there adequate procedures to monitor contracted services, to evaluate their cost-effectiveness, to hold contractors accountable for results, and to ensure the Government gets what it pays for?
Are any of the contracted services inherently governmental and therefore inappropriate for contracting outside of government?

"Before letting new contracts," Panetta wrote, "you will, I hope, make certain that these issues are addressed, that the services are essential to your mission, and that appropriate procurement policies (including emphasis on adequate competition) are observed."

"Contracting is one of the primary means by which government spends the taxpayers' dollars," Panetta said separately. "But it is possible that some of those dollars could be saved by procedural reforms and by taking a hard look at whether government does too much contracting out. This review should provide some answers."

# # # # #