Procurement Reform

 

Announcing a New Procurement Initiative

governmentToday we're excited to announce an expansion of our work in the area of government procurement. Sunlight has covered procurement before in the broader context of spending transparency, the poor state of contracting oversight systems, and the general inability to accurately identify contractors, but since it affects many different aspects of our work, we want to address it more holistically.

There are a few angles to pursue this from that are right up Sunlight's alley and lots of good questions for us to dig into. Our natural inclination is to look for ways that more transparency in the contracting process could reduce corruption, improve government effectiveness, and allow for more accountability to citizens. It's not just that our procurement process is sometimes opaque. The constellation of systems that exist across the government to solicit, manage, oversee, and publish procurement data is so disparate and confusing that it can not only alienate qualified small businesses and vendors from the process, but even seasoned auditors can have trouble navigating it. Combine the inherent complexity of the system with a shrinking acquisition workforce that is struggling to keep up with its training and staffing requirements, and you have a system that isn't working well for anyone.

This leads us to ask where transparency can be introduced to alleviate some of these pressures. If the acquisition workforce that's responsible for overseeing contractor performance is overwhelmed, doesn't it make sense to expose more data around the bidding process so that we can help set them up for success? Ideally, transparency alone would deter a lot of bad behavior from occurring in the first place. But barring that, if bidders' names and company information were public, a good deal of oversight could be done by the public and competing bidders. Watchdogs could ask basic questions about a bid: "Does this company usually work in the industry area it's bidding on?"; "Were the losing bidders recently formed companies that were set up to lose?" Setting aside potential corruption in the bidding process, wouldn't it be nice if there were better public metrics regarding which types of contracts get very few or single bids? Other companies can identify these single-bid niche markets inside government procurement and add more competition, which helps the whole process function better.

contractOnce a contract is awarded, it is difficult for the public to track its performance. There have been one-off projects, like the IT Dashboard (currently archived pending new numbers) that show the public whether or not a contract is on-budget and on-time. That project was successful, resulting in the cancellation or scope reduction of several over-budget and over-time projects that just weren't working. Unfortunately, this kind of information is difficult if not impossible to discern from the data on USASpending.gov. The full text of contracts is only available via the FOIA process, making it very difficult for an outsider to ascertain whether or not contract requirements are being met. This puts all the burden on the acquisition workforce to maintain information about a contractor's performance. According to a report by the IG Council, officers responsible for suspending contractors from doing business with the government generally defer from taking this action until evidence comes to light via indictments, criminal convictions, or civil judgments. In reality, they could employ this process more often, as was the report's recommendation. While a certain amount of responsibility must remain with these officers, making more contract data public can help make it easier for citizens to understand just what their government is acquiring.

These are just a handful of the questions that we're beginning to investigate. In addition to exploring what the federal government could do better, we'll also be writing about procurement systems at various levels of government (including internationally) and how the process differs from our own. There are some great tools out there that we're looking forward to sharing with you, but we suspect their use here may be precluded by a lack of data. As we delve into this we'll be writing about our work and soliciting feedback from our audience -- starting with this post. Is there something about the process you think we should address? Do you know of an oversight or tracking tool we should be aware of? Let us know what you think in the comments. We can't begin to tackle such a large and important topic without the help of our broader community, so I hope you'll follow along and participate in the discussion.

Testifying Before Full House Oversight Committee on Federal Spending Transparency

The logo of the Sunlight Foundation's Clearspending projectTomorrow morning I will be testifying before the full House Oversight and Government Reform Committee about the Sunlight Foundation's work to liberate federal spending data and experience in developing databases and tools for tracking spending. The hearing, entitled "Achieving Transparency and Accountability in Federal Spending," will be the second opportunity for me to discuss the Sunlight Foundation's Clearspending report where we identified nearly $1.3 trillion in misreported federal spending. The two hour hearing should be live-streamed on the committee website and will start at 9:30 am in Rayburn 2154.

It is an exciting time to continue this important conversation as just today there were two new federal spending developments. The House Oversight Chair Darrell Issa (R-CA) introduced a major piece of transparency legislation that would transform how we track federal spending and identify waste, fraud and abuse. You can read more about the bill from a blog post by Daniel Schuman, Sunlight's policy counsel. The White House also issued an executive order today that will put Vice President Biden in charge of an 11-member oversight board — very similar to the Recovery and Accountability Transparency Board — to address federal agency waste and fraud.

The entirety of my remarks appear below:

6-14-11 - Written Testimony of Ellen Miller before the Committee on House Oversight and Government Reform

Testifying Before House Committee on Clearspending

$1,281,442,556,640 is the amount of federal spending that is incorrectly reported in 2009 by USASpending.govThis morning I testified before the House Committee on Oversight and Government Reform's Subcommittee on Technology and Information Policy about the failures of government to make rhetoric meet reality. The Sunlight Foundation has been excited about the new promises of data transparency, but sometimes the results are nowhere near the accuracy and completeness necessary for the data to be useful for the public.

Sunlight's Clearspending analysis found that nearly $1.3 trillion of federal spending as reported on USASpending.gov was inaccurate. While there have been some improvements, little to no progress has been made to address the fundamental flaws in the data quality. Correcting the very complicated system of federal reporting for government spending is an enormous task. It has to be done because without it there is no hope for accountability.

In order to fulfill the promise of the Open Government Directive and move forward to meaningful spending disclosure I offered a number of recommendations to the committee. These include unique identifiers for government contracts and grants, publicly available hierarchical identifiers for recipients to follow interconnected entities and timely bulk access to all data.

A video of the hearing should be available shortly on the committee's website and the entirety of my remarks appear below:

Written Testimony of Ellen Miller before the Committee on House Oversight and Government Reform

Disclosing your sister...

When I was at the Center for Public Integrity, we once asked the Pentagon for some financial disclosure forms and were told that yes, they had the forms on file, but no, we couldn't see them, because these disclosures were not to be dislcosed to the public.

This "kissing your sister" form of disclosure, as I thought of it then, came to mind as I read some of the disclosure provisions in the Executive Refrom Act, particularly those that call for federal procurement officials to disclose all job offers made to them or their family members by contractors (see page 13 of the PDF).

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