Wednesday, March 04, 2009

Explains why Blackwater / Xe is getting out of the business

The taps are being shut off and people are demanding to see the paperwork:
WASHINGTON – President Barack Obama on Wednesday ordered an overhaul of the way the U.S. government awards contracts for private sector work, reversing a Bush administration policy that in some cases led to federal investigations of procurement practices and no-bid contracts.

Obama joined Republican Sen. John McCain, his presidential campaign rival, and other congressional figures to announce an executive memorandum that commits his administration to a new set of marching orders for awarding contracts. Obama said "the days of giving government contractors a blank check are over" and said changes could save up to $40 billion a year.

One area in particular that is targeted is no-bid contracts, which the administration is seeking to change so that there will be more competition for government-paid work.
The article continues: [my bold]
The new administration argued that its Republican predecessor's contract spending had doubled to more than $500 billion over the last eight years.

"Far too often, the spending is plagued by massive cost overruns, outright fraud, and the absence of oversight and accountability," Obama said. "In some cases, contracts are awarded without competition; in others, contractors actually oversee other contractors."

Dozens of people have been charged with bribery and other contract fraud crimes as part of a Justice Department crackdown on contract and procurement fraud. Fraud has been particularly prevalent following the invasions of Afghanistan and Iraq, where billions of dollars was spent quickly and often with little oversight.

More than 140 investigations are under way into allegations of contract fraud in Iraq, Kuwait and Afghanistan.
Oh no!! Does this mean the end to the development of the Puke Ray?
"In Iraq, too much money has been paid out for services that were never performed, buildings that were never completed, companies that skimmed off the top," Obama said. "At home, too many contractors have been allowed to get away with delay after delay after delay in developing unproven weapons systems."

"It's time for this waste and inefficiency to end," the president said.
Things are really going to change now. Waste and inefficiency were the two most favorite words in the Bush administration.

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