Small government contractors can lead job creation

By Eric Basu, Washington Technology, 12/09/09

The discussion of how to create jobs now that the recession is waning appears to be missing the obvious. Although unemployment numbers are a lagging indicator of a recession and therefore poor numbers should be expected even as the economy recovers, government pundits fail to realize that creating incentives for small businesses to hire workers is the fastest way to encourage new growth and jobs. Read more.

The Upside of Outsourcing

Government Contracting Is Not All Bad

By Guy Ben-Ari, DefenseNews, November 16, 2009

In the past few weeks, criticism about America's foreign policy being outsourced to the private sector has resurfaced with a vengeance. From a new book, Allison Stanger's "One Nation Under Contract," to columns by Tom Friedman and Tom Barnett, leading thinkers are raising alarms about the sharp increases in government contracts to the private sector from the Department of Defense, the Department of State and the U.S. Agency for International Development (USAID).
While highlighting important questions, much of the analysis lacks the depth critical to understanding this complex issue. A second look is needed to examine how much is spent, determine what it is being spent on and make concrete recommendations. Read more.

Five Ways Pentagon Insourcing Will Backfire

By Loren B. Thompson, Ph.D., Lexington Institute, November 11, 2009

On April 8, two days after defense secretary Robert Gates proposed huge cuts to military investment programs, the Pentagon's comptroller signaled where all the money saved will end up going. It will go to paying for more bureaucrats -- 33,000 to be exact, many of whom will paradoxically be added to the acquisition workforce at the same time dozens of weapons programs are being killed or scaled back. The same directive expanding the ranks of civil servants also cut the funding available for hiring private contractors. Guidance issued by the department for implementing the shift asked military services and agencies to "review all contracted services for possible insourcing," stating that "insourcing is a high priority of the Secretary of Defense." Read more.

OMB Releases New Contracting Memos

On October 27, the Office of Management and Budget (OMB) issued two memoranda which build upon President Obama’s March 4 Memorandum on Government Contracting. The memos, “Increasing Competition and Structuring Contracts for the Best Results” and “Acquisition Workforce Development Strategic Plan for Civilian Agencies – FY 2010-2014,” emphasize the importance of front-end acquisition planning, clarity in requirements, robust market research, matching appropriate contract type to the specific requirement and acquisition strategy, and enhancing the capabilities of the federal acquisition workforce. Read more.