Department of Transportation

Contract Savings

I have come from Private Industry and am amazed at the amount of money that is spent on Contractors. We pay for the office space, travel, in some cases training, office supplies and equipment, pass-throughs. We could save millions of dollars annually if our contracts eliminated this kind of spend. We need to standardize our requirements across all the agencies, review the criteria and start eliminating this type of spend. We, as dictated by Congress, are to have no pay increases yet we, the Government will allow the Contractors to have pay increases from 3-5 % annually. We pay the Contractors fees from 6 to 15% and yes on pass throughs the Prime Contractor still gets their fee. I recommend we identify and list the areas in all contracts where we can save money,and initiate these savings immediately. This is standard operating procedures in private industry - if we are being compared to private industry than let's think, act and perform this way.

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Idea No. 5235