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Obama to Order Overhaul of US Government Spending
Date: 3/4/2009 8:36:10 AM Sender: VOA News
Obama to Order Overhaul of US Government Spending Process
By VOA News
04 March 2009

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President Barack Obama (file photo)

U.S. President Barack Obama will issue an order Wednesday aimed at reforming the government＇s procurement system.

An unidentified administration official says Mr. Obama will sign a directive instructing White House budget director Peter Orszag to work with Cabinet and agency officials to develop stringent new contracting rules by the end of September.

The official says the president will call for an end to several government practices, including unnecessary no-bid contracts. Mr. Obama also wants to stop outsourcing jobs to private contractors that should be performed by government employees, and to open contracts to small businesses.  

The administration believes the initiatives will save U.S. taxpayers up to $40 billion a year.

Critics say costly military projects that tend to come in well over budget are a major example of wasteful government spending.

During a fiscal responsibility conference at the White House last week, Republican Senator John McCain mentioned a program to build a new fleet of presidential helicopters. During the previous administration of George W. Bush, U.S. defense contractor Lockheed Martin was contracted to build 28 helicopters for presidential use at a cost of $6 billion.

The cost of the project has soared to $11.2 billion.  

Mr. Obama told McCain, his opponent in last year＇s presidential election, that he has ordered Defense Secretary Robert Gates to review the project. The president cited the project as an example of the procurement process "gone amok."

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