Monday, March 2, 2009

Contracting out is not new.

Did you know federal government requires that departments and agencies of the national government allow private companies to compete to provide the services that government employees provide?
The federal departments must request bid proposals for services although the government employees may also submit...

...a bid to continue to provide the service. Lower bidder gets to do the work. Google "Federal A76 competition requirements" or look at the link here. This procedure has saved billions of dollars for the federal government. I don't see why it would not work for municipal government as well.

8 comments:

Anonymous said...

Why does a GS employee with 80% disability get preference over a civilian employee with 0%?

Anonymous said...

and the federal budget deficit is how much????? I'm not sure that's the right model for us . . .

phil said...

I have worked for government contractors for 20 years. There are plus's and minus's to both systems. The Navy went away from lots of ET's to contractors because of the costs involved. A plus is reduced costs since a lump sum contract is awarded(cash only-no benefits). The problems come in when a company doesnt fulfill its contract. It takes a act of God to throw out a company no matter how bad they are doing the job until the end of the contract. Its also expensive to have to re-award a contract. You can also count on substantial increases when contracts are re-bid every few years. Add-in salary increases that are bid into the contracts and the percentage profit in each bid.These company's are in it for $$$. The worst situation is when a company bids a fixed amount and cuts people and services to the bone to maximize profit.No parts or supplies are ordered and the customer has no say as long as the bare minimum service is met. When the contract ends your alot worse off than where you started.

Anonymous said...

Plus you get $400.00 hammers and $4,000.00 toilet seats.

Anonymous said...

thats a good point Bill..BLACKWATER security worked GREAT for this COUNTRY ..weren't they a private firm...yes they were...So was Halliburton..which is responsible for over charging government and KILLING OUR men and women in uniform with their shoddy electical work...also I f hear form the SB that Privitization works because California is doing it...TIME TO READ THE NEWSPAPER..that that is in the worst shape of all the states. I dont know about you Bill but that is some terrible examples of privatization.

Anonymous said...

Phil, you should have been on the privatization commitee. As for Haliburton don't forget their largest sin,besides killing soldiers, moving company headquarters to DUBAI and operating TAX free. Talk about robbery!!! Bill, there's a song for you to put up on your website "Take the Money And Run" ya know Bobby Sue?? Yep sign me up for privitaztion, penny wise dollar foulish. It's funny Bill and Gracie were both affected by outsourcing, and now they want to outsource everyone else. It's the bullied turning into the Bully.What a shame.

Anonymous said...

I don't want to privatize either. I want to go to a defined contribution retirement system. Had we done this when the snail mail US Postal Service did(about 25 years ago), we would have had an extra $2Million this year. I refuse to be a part of saddling my children with debt.

Anonymous said...

Well, one way or another, there will have to be some change. Whether 401(k)s, privatization, something else, or a combination of things, something has to be implemented to start helping us financially.

Good luck trying to get some of these people, especially on some of the boards, to agree to do anything that would jeopardize their livelihood and salaries.