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Home :  Federal Budget & Tax : 
Federal Budget & Tax:      News     Blog     Background    



Thursday, October 25, 2007

Jackson: Stretching the Truth at HUD

Secretary of Housing and Urban Development Alphonso Jackson was back in the news this week, and the story wasn't good. Here's an passage from the AP artice:

WASHINGTON - During an investigation of his conduct last year, President Bush's housing secretary defiantly defended his dealings with federal contractors doing business with the department.

Alphonso Jackson survived that investigation, but now faces a new one stemming from the same forceful style that got him in trouble the first time.

The FBI and the department's internal watchdog are examining Jackson's ties to a friend who was paid at least $392,000 in federal money after Jackson passed along the man's name for a job as post-Katrina construction manager at the Housing Authority of New Orleans.

Saying Jackson "survived" the last investigation is putting it lightly. The internal HUD investigation by the Inspector General's office (the report of which has not been made public according to the AP) found that Jackson lied about his dealings with contractors, boasting inaccurately that he canceled a contract to one contractor after they expressed views different from President Bush. In fact, Jackson freely admitted he had lied about canceling the contract.

Yet later in the IG's report, Jackson claimed not to have interfered with a grant for $4 million to Abt Associates, despite his staff testifying that he did. Apparently Jackson didn't like that Abt Associates associates only gave money to Democrats. The report conclude the award was "blocked for a significant period of time due to Jackson's involvement and opposition." Jackson said he never held it up. I suppose we're just supposed to believe him this time, despite evidence to the contrary and his track record for stretching the truth.





Posted by Adam Hughes, 03:57:41 PM



Tuesday, October 23, 2007

Supercaptialism

Via, Lawrence Lessig, Robert Reich's new book, Supercapitalism, makes a point regarding the place of corporations in civil society well worth highlighting:

This is a critically important point for people to get -- and one that many good thinking souls don't yet agree with. [...] Corporations are not more efficient governments. They are instead increasingly efficient money making machines. And while there's nothing at all wrong with money making machines -- indeed, wealth and growth depends upon them -- there is something fundamentally wrong with trusting these machines to restrain the drive for profits in the name of doing the right thing.

Lessig's whole post is worth a read. However, below the fold is a fuller excerpt from his review.


Read more...

Posted by Craig Jennings, 12:31:45 PM



Monday, October 22, 2007

Allard PART Amendment Hammered By Senate

The Allard amendment that would automatically cut programs in the Labor-HHS appropriations bill should OMB hand down an "ineffective" PART rating was hammered back by the Senate this evening by a vote of 68-21.

Thanks to everyone who contacted Senators to urge them to vote against this dangerous policy.





Posted by Adam Hughes, 07:08:14 PM



Vote No on Sen. Allard's PART Amendment

The Senate is debating the Labor-HHS-Education appropriations bill today (and probably tomorrow), and Sen. Wayne Allard has introduced a disturbing amendment that would automatically cut the budget of any program that was given an "ineffective" PART rating by the Office of Management and Budget. Under Allard's amendment, any program that is listed as "ineffective" under the PART would be automatically cut by 10 percent, with the amount cut used to pay down the national debt. To see which programs would be cut, see this list of "ineffective" programs on the ExpectMore.gov website: programs rated ineffective. The list includes Even Start, the Perkins loan program, vocational education grants, Upward Bound, the Workforce Investment Act programs for Migrant and Seasonal Farmworkers and Youth, the Substance Abuse Prevention and Treatment Block Grant, and the Healthy Community Access program, among others.

But there is a larger issue at play here than where you come down on these programs or the PART itself (and you should come down against it). Congress is granted the authority to appropriate public funds under the Constitution, not the executive branch. Enacting this amendment would transfer that authority to the executive branch, and more specifically to a number of unelected public employees whose sole job is to carry out the policy preferences of the president. Why would any Senator want to vote to give him or herself less power?

What's more, imagine the degree or manipulation of future PART scores for programs covered under this bill if this administration (or any future one) knew a rating of "ineffective" would bring an automatic 10 percent cut. Something tells me we would start to see a whole lot more "ineffective" ratings for programs in the Departments of Education, Labor, and Health and Human Services.

A vote on the amendment is likely later today or tomorrow morning. Please take 5 minutes to call your Senators offices to tell them to vote no on the Allard amendment to the Labor-HHS-Education bill.





Posted by Adam Hughes, 12:22:32 PM



Friday, October 19, 2007

Private Firm Fails to Deliver Yet Again

Writing for McClatchy, Warren P. Strobel and Jonathan S. Landay report on a criminal probe into mismanagement of the construction of the $600 million Baghdad Embassy.

A congressional committee is examining whether the walls of the still-unfinished embassy complex, which are supposed to be blast-resistant, performed as they should have during the mortar attack.

U.S. Ambassador Ryan Crocker banished [the State Department contractor in charge of the project, James L.]Golden from Iraq, but he continues to oversee the construction of the embassy in Baghdad; to be the liaison with the contractor, Kuwait-based First Kuwaiti General Trading and Contracting Co.; and to supervise other projects for the State Department's Overseas Buildings Operations (OBO) bureau.

The embassy — actually a 104-acre, Vatican-size compound of 21 buildings meant to house and sleep about 1,000 U.S. officials was originally meant to open in June, then in September. Now, due to problems with the sprinkler system, the latest in a series of deficiencies blamed on First Kuwaiti, it remains unclear whether it will be ready for occupancy this year.

It's not that private firms can never do right, but that, contrary to conservative ideology, they are quite capable of colossal failure. The tragedy of the president's failure to recognize this simple, yet blindly obvious fact will result in millions of kids going without health insurance.



Posted by Craig Jennings, 11:06:52 AM



Friday, October 12, 2007

Privatization: The Other Blackwaters

Be sure to read a great op-ed by our own Matt Lewis in TomPaine.com today on larger lessons to be learned from the privatization of security services in Iraq. Here's the key passage:

Citizens who believe in government as a tool to advance the public interest ought to be concerned about excessive privatization of public services. Contractors like Blackwater USA are alienating would-be friends abroad and the public back home. Instead of rushing to privatize public services at every turn, our government should carefully review the services it currently oursources—keeping in mind the role of government should be to serve the public interest.

TomPaine.com: The Other Blackwaters





Posted by Adam Hughes, 05:05:32 PM



Tuesday, October 09, 2007

House To Vote On IRS Private Tax Collectors

This Thursday, the House is scheduled to take a floor vote on a bill to repeal the IRS private tax collection program.

This is great news, and we urge support of the bill (HR 3056). The bill that'll be voted on, which was shepherded by Rep. Charles Rangel (D-NY), would allow companies who currently have contracts under the program to complete them, and its cost is fully offset. A nearly identical version of the bill, HR 695 sponsored by Rep. Chris Van Hollen (D-MD) and Rep. Steve Rothman (D-NJ), has 156 cosponsors, including 16 Republicans.

Update: The vote will take place on Wednesday, not Thursday.



Posted by Matt Lewis, 01:36:00 PM



Wednesday, October 03, 2007

Even Bad Contractors Get New Contracts!

U.S. PIRG released a new report today that profiles how contractors who have poor performance or fraudulent practices can still receive new contracts from the federal government. The report profiles companies such as Bank of America, General Electric, Lexis-Nexis, Kellogg, Brown, and Root, and Northrup Grumman, among others. An excerpt from the report's executive summary:

The rapid increase of federally contracted dollars—100 percent since 2000—makes outsourcing the fastest growing component of discretionary spending. The government's preference for using outside contractors to provide goods and services makes careful scrutiny of the process and the decisions more important than in the past. At present, loose rules, lack of competition, and limited accountability permit so-called 'bad actors' to receive contracts that put taxpayers and our money at risk.

It's a very interesting report and I'm sure, as they imply, these examples are just the tip of the iceberg. Also of note, they use FedSpending.org for their contracts data - very cool!

U.S. PIRG: Forgiving Fraud and Failure: Profiles in Federal Contracting





Posted by Adam Hughes, 04:42:20 PM



Tuesday, October 02, 2007

Defense Authorization Would Change Contracting Rules

The Senate overwhelmingly passed the National Defense Authorization Act of 2008 last night. The bill included the Webb/McCaskill wartime contracting commission, and, according to BNA (subscription required), these provisions on military contracting:

Immediately before voting on the measure, the Senate agreed 51-42 to adopt an amendment that would impose new limits on Defense Department implementation of the public-private competition process under Office of Management and Budget Circular A-76, and eliminate OMB competitive sourcing goals.

The amendment, offered by Sens. Edward Kennedy (D-Mass.) and Barbara Mikulski (D-Md.), includes provisions that would:

  • exclude health care and retirement costs from the A-76 cost comparison process in DOD public-private competitions;
  • prohibit federal agencies from converting to private-sector performance any function performed by 10 or more in-house employees without implementing a formal cost comparison that includes an in-house most efficient organization (MEO) and results in a determination that contractor performance will result in savings of $10 million or 10 percent of the personnel-related costs of the agency tender;
  • eliminate automatic recompetition of work at the end of the performance period when an A-76 competition is won by federal employees;
  • expand appeal rights for federal employees who have lost A-76 competitions to contractors; and
  • require DOD to issue guidance on allowing federal employees to compete for new work or for certain work currently being performed by contractors.


Posted by Matt Lewis, 10:32:54 AM




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