White House Increases Competition for Contracts;

Today, Citizens for a Sound Economy (CSE) praised the Bush administration for improving the process through which private companies compete to provide commercial services to the public. Federal agencies currently employ both public and private sector resources to perform a variety of commercial services — services like computer support, collecting fees at National Parks, and landscaping to name a few.

The Office of Management and Budget (OMB) announced several reforms today, resulting from a two-year effort to shorten the contract competition process and to make it simpler and fairer.

These reforms mean that taxpayers will get more bang for their buck from public services. According to OMB Director Mitch Daniels, introducing fair competition can save taxpayers an average of 30 percent.

CSE Chief Economist Dr. Wayne Brough made the following statement:

“The changes mean taxpayers will pay less for better services.

“As in any market, competition generates lower prices and improved services. The government should incorporate competitive practices wherever practical. Providing goods or services to the government should be subject to the same competitive forces that operate everywhere. Competition in the marketplace should determine winners and losers, based on the ability to meet the government’s needs at the lowest price. At the same time, competition reduces the government’s ability to play favorites when granting contracts. Price and quality should drive the decisions, not politics and favoritism.”