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



Friday, April 25, 2008

The Magic of the Market

In the WaPo, Christopher Lee reports on how the President's Competitive Sourcing Initiative® is going.

"The competitive sourcing initiative did little to improve management, produced a ton of worthless paper, demoralized thousands of workers and cost a bundle, all to prove that federal employees are pretty good after all," said Paul C. Light, a professor of government at New York University's Wagner Graduate School of Public Service.

The president's program was implemented to bring the magical cost-cutting powers of the market to the federal government by pitting government employees against private contractors in a bidding war. So far, 83 percent of competitively-sourced have been won by federal workers.

After $225 million in administrative costs and five years of putting decent-paying, benefit-providing jobs on the auction block, the Bush Administration has shown that the federal government is better at providing federal-government services more efficiently than most private firms.



Posted by Craig Jennings



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