DoD Service Contract Budget & Spending Data Don't Match Up
From the Project On Government Oversight
Today, the Project On Government Oversight sent a letter to congressional and executive branch officials, highlighting the Department of Defense’s (DoD) inability to provide sufficient oversight of the hundreds of billions of dollars spent each year to procure services from contractors. Without reliable and accurate data, how can Congress hold DoD accountable for complying with requirements for submitting accurate budget requests? Additionally, in the absence of government transparency, how are taxpayers to know whether their dollars are being spent in a cost-effective fashion?
POGO analyzed DoD’s responses to congressional inquiries; testimony given at Senator Claire McCaskill’s March hearing, “Contractors: How Much Are They Costing the Government?”; and DoD policy and budgetary records. POGO found inconsistencies in DoD’s claims about making cost-efficient policy and human capital decisions. POGO’s review of DoD service contracting budget and spending documents found that it expends between 2.35 and 3.53 times more of its funding on service contracts than on its civilian workforce, and that the cost of an average contractor full-time equivalent (CFTE) is between 2.94 and 8.60 times more than an average DoD civilian full-time equivalent (GFTE). In short, the numbers are grossly out of proportion, and there need to be improvements in comparative cost modeling and service contracting data in order to control costs and protect taxpayers.
POGO has been following service contract cost issues for years. In 2011, we published a report comparing the cost of government and contractor employees. Our report found that the government doesn’t always save money by contracting out services. In fact, on average, the government is spending nearly twice as much on contractors as on federal employees performing comparable work.
We are asking Congress to request a Government Accountability Office study of cost modeling systems to ensure DoD is able to maintain a balanced and cost-effective workforce as required by law. Additionally, POGO recommends that the National Defense Authorization Act for FY 2013 include improvements to service contract inventories that will allow DoD to better compare federal employee and service contract costs.
With sequestration looming and the government strenuously trying to reduce federal spending, someone has to focus their attention on service contract spending and whether the government is wasting billions of taxpayer dollars on a contractor workforce that is unsustainable.
Scott Amey is the general counsel for the Project On Government Oversight.
The Project On Government Oversight is a nonpartisan independent watchdog that champions good government reforms. POGO’s investigations into corruption, misconduct, and conflicts of interest achieve a more effective, accountable, open, and ethical federal government. Founded in 1981, POGO (which was then known as Project on Military Procurement) originally worked to expose outrageously overpriced military spending on items such as a $7,600 coffee maker and a $436 hammer. In 1990, after many successes reforming military spending, including a Pentagon spending freeze at the height of the Cold War, POGO decided to expand its mandate and investigate waste, fraud, and abuse throughout the federal government.
Throughout its history, POGO’s work has been applauded by Members of Congress from both sides of the aisle, federal workers and whistleblowers, other nonprofits, and the media.
2012-10-24 20:13:12
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