Wednesday, October 29, 2014

Spiraling Federal Contract Spending

Someone asked me how much of the US budget went to contractors.  It looks like about 1/3, it may have changed since 2012 though.


The total US Budget in 2012 was $3.54 Trillion, so
it looks like about 34% if this source is even close.

Those who advocate for reduced federal spending may be missing the notion that it would result in reduced contracting, reduced (federally funded) private sector jobs. Major employers in the US build weapon systems, fighter jets, cargo planes, warships, as well as IT and other service type companies that build government systems and provide support to government functions.

Some  miss the fact that some of the government 'failures' are also partly private industry failures.  It's government's failure not to detect and cut off the failing federally funded private industry projects, but those who clamor for running the government more like business..... they are placing too much faith and credibility in the private sector where money may trump mission.  The track record of contractors in government is littered with a sufficient history failures and fraud to suggest that contractors are no panacea in providing government services and functions any better than federal employees can, and do.

Contractors who cheat

It has always puzzled me the extent to which government employees are criticized for inefficiency or laziness or general bureaucratic malfeasance or....xxx or.....yyyy....while profit making industry is often praised for the opposite qualities.  Stories like the one below usually fly below the general population's radar, while the government employee stories are front page.  
Here is a small A.P. STORY one about one of the biggest contractors in the business.  Sloppy timekeeping for a fortune 500 company is a very lame explanation.... Thanks to the whistleblowers who voluntarily told the truth.


Boeing pays $23M settlement over labor charges 

Update at 10:29 PM (10 Oct 2014)

SAN ANTONIO (AP) - The Boeing Co. has paid $23 million to settle allegations that it submitted false labor charges to the U.S. Air Force for contract maintenance on C-17 Globemaster transport aircraft.
A Justice Department statement issued Friday says the allegations centered on labor costs the Chicago-based company charged improperly for maintenance and repair work at Boeing's Aerospace Support Center in San Antonio.
The allegations were made initially by four present and former Boeing employees acting as whistleblowers. They will divide $3.9 million as their share of the settlement under terms of the False Claims Act.
In a brief statement, Boeing called the discrepancies "a matter of inadequate charging discipline" not deliberate wrongdoing. The company said it's improved charging practices.