(NSI News Source Info) WASHINGTON - March 5, 2009: President Ba
rack Obama said on Wednesday the U.S. government was paying too much for things it did not need and ordered a crackdown on spending he declared was "plagued by massive cost overruns and outright fraud."
Obama said wasteful spending was a problem across the whole government but he zeroed in on the defense industry after earlier citing a project to build a new presidential helicopter fleet as an example of the procurement process "gone amok."
"The days of giving defense contractors a blank check are over," Obama told reporters.
He ordered a reform of the way the government did business, a move he said would save taxpayers $40 billion a year and help cut the budget deficit, which he has forecast will hit $1.75 trillion for the 2009 fiscal year.
Obama, who inherited a $1.3 trillion deficit when he took office on Jan. 20, has sought to show his determination to apply fiscal discipline even as he ratchets up government spending to try to jolt the economy out of recession.
Republicans support procurement reform but say his $3.5 trillion budget proposal for the 2010 fiscal year is part of a "tax-and-spend" onslaught. Obama, a Democrat, says the spending is necessary to tackle the worst economic crisis in decades.
"Far too often spending is plagued by massive cost overruns, outright fraud and the absence of oversight and accountability," Obama said.
"We are spending money on things we don't need and we are paying more than we need to pay and that is completely unacceptable."
He said there was influence peddling and a lack of oversight in contracts awarded to the defense industry, whose weapons projects were too often hit by delays and cost overruns.
"We will end unnecessary no-bid and cost-plus contracts that run up a bill that is paid by the American people," Obama said. Critics say cost-plus contracts invite abuse because they allow companies to charge the government costs plus a fixed profit no matter how poor their performance.
"I reject the false choice between securing this nation and wasting billions of taxpayers' dollars," he said.
Elected on campaign promises of sweeping change and greater accountability in Washington, Obama said he would sign a presidential memorandum seeking to "reform our broken system of government contracting."
He said he had instructed White House budget director Peter Orszag to start working immediately with Cabinet officials and agency heads to develop tough, new guidance on contracting by the end of September.
rack Obama said on Wednesday the U.S. government was paying too much for things it did not need and ordered a crackdown on spending he declared was "plagued by massive cost overruns and outright fraud."
Obama said wasteful spending was a problem across the whole government but he zeroed in on the defense industry after earlier citing a project to build a new presidential helicopter fleet as an example of the procurement process "gone amok."
"The days of giving defense contractors a blank check are over," Obama told reporters.
He ordered a reform of the way the government did business, a move he said would save taxpayers $40 billion a year and help cut the budget deficit, which he has forecast will hit $1.75 trillion for the 2009 fiscal year.
Obama, who inherited a $1.3 trillion deficit when he took office on Jan. 20, has sought to show his determination to apply fiscal discipline even as he ratchets up government spending to try to jolt the economy out of recession.
Republicans support procurement reform but say his $3.5 trillion budget proposal for the 2010 fiscal year is part of a "tax-and-spend" onslaught. Obama, a Democrat, says the spending is necessary to tackle the worst economic crisis in decades.
"Far too often spending is plagued by massive cost overruns, outright fraud and the absence of oversight and accountability," Obama said.
"We are spending money on things we don't need and we are paying more than we need to pay and that is completely unacceptable."
He said there was influence peddling and a lack of oversight in contracts awarded to the defense industry, whose weapons projects were too often hit by delays and cost overruns.
"We will end unnecessary no-bid and cost-plus contracts that run up a bill that is paid by the American people," Obama said. Critics say cost-plus contracts invite abuse because they allow companies to charge the government costs plus a fixed profit no matter how poor their performance.
"I reject the false choice between securing this nation and wasting billions of taxpayers' dollars," he said.
Elected on campaign promises of sweeping change and greater accountability in Washington, Obama said he would sign a presidential memorandum seeking to "reform our broken system of government contracting."
He said he had instructed White House budget director Peter Orszag to start working immediately with Cabinet officials and agency heads to develop tough, new guidance on contracting by the end of September.
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