Wasteful Defense Spending Is a Clear and Present Danger

[Surferbeetle]

Privatization is a government strategy that can be attributed to Margaret Thatcher, Ronald Reagan, and Brian Mulroney. The objective is to allow the competitive powers and associated efficiencies of the free market to deliver government services at low cost. The theory is sound and simple to understand, however effective real world implementation depends upon a government's (and as we know they are not monolithic entities) ability to mobilize sufficient capability and capacity to properly oversee the process. The IMF & World Bank are famous/infamous for attempting to implement Privatization Strategies in 2nd and 3rd World countries.

The government side of the sausage making process as I understand it:

Hazy understanding:

• Agency develops a budget request which takes into account operations & maintenance, new projects, and force structure-somehow this is tied to a budgetary line item

• Line items get appropriations (money) from Congress

Better understanding:

• Five year plan projects or emergency projects are funded.

• Contracting Officer's Representative (COR) develops a Statement of Work (SOW) which incorporates project background, defines required work, references industry standards to measure the work against, defines a submittal schedule, incorporates a proposed project schedule, and defines the deliverables to be provided by the contractor.

• COR develops an independent government estimate of the projects anticipated cost.

• Contracting Officer (CO or KO) sends out a Request for Proposal and considers bids from qualified parties.

• COR reviews bids for technical considerations if requested and provides advice to CO

• CO applies Federal Acquisitions Regulation, determines winning bid, and negotiates price

• CO, COR, and Contracting Officer's Technical Representative (COTR) then oversee project to completion

Just like in military operations, weak links in government contracting operations often come down to capacity and capability.