Return to Article: Acquisition officials push share-in-savings IT contracting

By Tanya N. Ballard tballard@govexec.com October 3, 2003
  • 1788

    This probably is one of the most dangerous ideas to date.

    1. Agencies do not know how to estimate the savings properly and probably will hire a contractor to prepare the estimate!

    2. Agencies that think they know the savings probably are wrong because they over estimate the savings as a way to increase their own rewards for good actions and in the military they get it in their OPR, which is totally overstated. If we saved everything listed in OPRs the government would be making money.

    3. The contractors will reduce the quality of the work to reach extensive savings and increase their revenue stream.

    4. This favors large contractors and eliminates small contractors because small contractors typically have a cash flow problem and cannot wait until the implementation to determine savings and get paid! This factor alone should cause the sudden infant death of the proposal. Davis needs to know what he is doing!

    5. There is no reasonable return on projects - these are government projects that in many cases are not worth doing - that is why they are government!

    GovExec.com reader Posted October 6, 2003 6:47 AM

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Acquisition officials push share-in-savings IT contracting
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