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No Bid Contracts & Bonuses?

Posted by italco on July 6, 2009


Government-wide guidance issued in 2007 by the Office of Management and Budget recommended that agencies link award fees to results and prohibit payments for poor performance. That policy has saved hundreds of millions of dollars, the GAO reported.

But the office found that many officials at several major agencies, including the departments of Energy, Homeland Security, and Health and Human Services, were “unaware” of the guidance. Others, including the Pentagon and NASA, have done more to make changes, but they have done so inconsistently, according to the GAO report, released June 29.

An Air Force contracting official told GAO investigators that a contractor “has to do a pretty bad job to receive a rating of ‘good’ ” — a rating that pays in excess of 85 percent of the award fee.

“The Pentagon and other federal agencies seem to live in a world where every contractor is above average,”  Sen. Bernard Sanders (I-Vt.) said in a statement after the report’s release.

The Office of Science at the Energy Department uses a scoring system that allows for payment of as much as 84 percent of an award despite a performance below expectations, according to the GAO report.

I have an idea!! How about doing away with bonuses?? A contractors incentive for doing a good job should be it’s participation in future contract biding. If the contractor isn’t incensed to do a good job then earmark that contractor and don’t allow them to participate in future bids.

This policy was enacted in 2007…seems odd, wasn’t that about the time our country started falling into an economic pit fall?? No bid contracts and rewarded for ripping America off.  I pray all those involved get their “just” rewards!!!

No bid contract = Just do the work and bill us what you feel it is worth

Performance Bonuses = Then double it

Talk about opening ourselves up for corruption. I wonder how many pockets were lined??? I sure hope we find out….follow the money!!

“Beat The Drum”


18 Responses to “No Bid Contracts & Bonuses?”

  1. On topic. I worked at a DOD contractor. Unbelievable waste.

  2. jammer5 said

    Apparently, the same people making the rules for government contracts are the same ones not making rules for the financial industry. Amazing how that works, huh? What irks me is the same people responsible for all this are still running the show.

    • italco said

      Jammer – welcome

      I agree…the mis-management seems to be rewared instead of punished. I do see some progress from the Justice department. They are at least investigating UBS and the 52,000 Americans who have off shore accounts in switzerland…I can’t wait to see who’s name comes up on that list.

    • jammer5 said

      Assuming the justice department can win their case. Switzerland’s fighting this tooth and nail. Privacy, you know. But I, too, would love to read the names of those involved. I’m guessing there would be some major surprises, as well as the usual suspects.

      Excellent site, by the way 🙂

    Not football, but a rough game. These kids are huge.

    • italco said

      My daughter and her husband live in Topeaka, KS…her mom and I devorced when she was young and she took off to Dodge City, KS. I have driven to and from Kansas many times…I currently am in Utah.

    • italco said

      In fact, my son-inlaw has season ticket to the KC Cheifs and on October 4th the Giants will be playing KC and I will be at that game…lol

    • jammer5 said

      San Diego Super Chargers!!!!!

    • italco said

      Chargers should do well this year…any of you guys/gals play fantasy football? I took 3rd in my money league (a group of us in Utah) but my online leagues I didn’t do so well…lol. Fall is definately my favorite time of year.

  4. What I’m understanding from this article is that a contractor won’t get full payment if they have not done their job adequately. A rating of “Good” seems to deduct 10-15% off the full contract. That’s a decent savings, if I am understanding this correctly, or am I missing something?

    • italco said

      I wish it was like that yorks…lol…this is a bonus which is “in addition to” the contracted amount. So if you were a contractor and you bid 100,000 and was awarded the bid…you would get the full 100,000 plus a performance bonus of up to 85% of the awarded fee.

    • italco said

      they are using the performance bonuses to attempt to incense contractors to do their job effectively…they either deduct from the bonus or add to the bonus but only the bonus is affected…the problem is…none of them were given poor rating so all the contractors were getting the 80 – 100% of the bonus….basically a screw job to American Tax payer

    • One more question then…..

      Is the job really worth the total including the bonus, or are they ending up paying up to twice the amount of what the job was worth?

    • italco said

      Thats my point Yorks. What is the need for a bonus program when our country is in dire straights as it is. This was inacted in 2007 when the previous admin was headed out…very suspicious if you ask me.

  5. We gotta get you more comments!
    Stop by ‘prariepopulists’ anytime, run yer mouth a bit….VOILA’, the common-taters show up.

    • italco said

      Thank you for the invite. I will get over there and shout out a bit…I am headed out for the day but will be sure to stop by later. Thanks for commenting here.

  6. OFF TOPIC….I noticed your terrible football addiction (humor).
    Shaun Hill, 49’ers QB contender is from my hometown in Kansas.
    I’ve ALMOST given up on the KC Chiefs.
    Never been to SF, but I’m thinking they have a new football fan,

    • italco said

      LOL…yes it is an addiction. I like the 49ers…I do understand drought but if you are in KC…never give up, every team is one key player from a superbowl win. What is it they say, “any given sunday”. Look at the Cowboys…all that money spent and still in a drought. Players come and go…the team is where our loyalty should be…I do feel your pain.

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