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(1) The very discipline of this "sunset" review lends an immediate incentive to either produce or pack up. The public, as a general matter, is thoroughly

disenchanted with the overall pace and productivity of the bureaucracy they pay for.

(2)

The legislative history and Procurement Commission report clearly envisioned OFPP as a positive force for reform, not just an overseer of current practice.

(3)

The scope of needed change is enormous. Our contracting system today represents the accretion of literally forty years of 4,000 statutory provisions, 877 sets of regulations filling 65,000 pages and more importantly has attempted to operate on precepts which have been overtaken by the modern character of the marketplace.

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(4)

OFPP represents an experiment which must produce dividends in order to demonstrate that

multi-million dollar Government commission studies can produce hard
results beyond edification of graduate student theses.

a small, high-level bureaucracy, well placed and well supported, can produce net benefits beyond the apparent and distasteful costs of adding yet another layer on the Government's organization chart.

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This Government can be effectively managed and modernized, as President
Carter seeks to do on a broad scale.

An aggressive posture carries with it, however, a commitment to tackle the tough issues. It also necessitates facing up to many political sensitivities which otherwise might rest undisturbed with a more reticent use of authority. And this, too, has been the case.

Probably the two most difficult, sensitive and longstanding problems in Federal acquisition have been contracting out OMB Circular A-76- and contract wage laws, in particular the Service Contract and Davis-Bacon Acts.

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In both cases, OFPP has sought to confront the longstanding difficulties in a fair, objective, even-handed manner, being responsive and attentive to the Congress, Government agencies, industry and both public and private labor groups. Our doors have been open to all.

We will have a new contracting out package shortly.

We have underway the most comprehensive review ever of contract wage law administration.

When complete, I suppose the affected parties — public employees, private unions, industry, agencies and congressional bodies each will remain somewhat

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dissatisfied with one feature or another, one key decision or another. Yet none,

either, have been completely satisfied with the stagnant status quo.

I hope and expect that beyond the legitimate special interests of each, there will be be recognition that we have improved Government management for all.

I will argue as forcefully to Congressman Thompson and Ken Blaylock, to Tom Donohue and Bob Georgine, to industry leaders and agency heads alike that it is in their interest to have a strong and accountable OFPP to deal with the gnawing problems which frustrate their responsibilities to members and missions, stockholders and constituents. Without it, problems will be left to fester, the price paid in inefficiency and unfairness will rise, and, collectively, we will frustrate our responsibilities to the public at large.

In conclusion, Mr. Chairman, let me say I would support reauthorization of OFPP for another limited span, not because so much has been accomplished thus far but because so much more needs to be done.

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ATTACHMENT

OFPP INTERFACE WITH THE ACQUISITION PROCESS

I.

II.

III.

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MAJOR OMB AND FEDERAL MANAGEMENT BULLETINS UNDER WHICH
OFPP HAS RESPONSIBILITIES:

OMB Circular A-109 (Major Systems Acquisition)

OMB Circular A-76 (Contracting Out)

OMB Circular A-102 (Attachment O)

OMB Circular A-110 (Attachment O)

OMB Circular A-114 (Management of Federal Audiovisual Activities)

OMB Bulletin 78-11 (Guidelines for Consulting Services)

OMB Circular A-18 (Policies on Construction of Family Housing)

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