I'm sure that you have seen this if not opposed it. the budget policy on the local and state level was that any unspent monies did not roll over to the next fiscal year but the next budget would be reduced by that amount. The onus was on spending the entire budget for that year plus incurring cost overruns to increase the next fiscal years budget.in the early 90s Environmental construction projects sewage and wastewater facilities and waterfilter plants were heavily funded by federal tax dollars in what was an almost endless supply.so these budgets inched ever upward and of course the seeds of greed and corruption blew in leading to charges and prosecutions. On Apr 11, 2016 7:38 PM, "Hot4azintop via PoliticalForum" < [email protected]> wrote:
> I agree 110% with you on this issue. As a former contracts executive for > local government, we saw the same thing as the folks in DC......the only > difference between us and DC was the number of zero's on the bottom line of > the contract. I had my staff carefully look at their subcontracting > practices and expected them to meet the federal guidelines when awarding > their subcontracts. Sole scource, no bid contracts are very tough to get > through as we expect open competive bidding on almost every thing out > there. Now, I recognize there are costs involved and time involved in every > contract bid but that is a way to keep costs down and limit those sole > scource contracts only with approval from the grantor. > > In a message dated 4/11/2016 3:22:43 P.M. Pacific Daylight Time, > [email protected] writes: > > I too don't have a problem with this. We pay out the ass. Every defense > contract needs to be gone over with (great) scrutiny. Along with all > federal contracts. > On Apr 11, 2016 2:34 PM, "plainolamerican" <[email protected]> > wrote: > >> fuck the defense industry and their thieves. >> >> On Monday, April 11, 2016 at 1:48:39 PM UTC-5, Travis wrote: >>> >>> >>> >>> >>> >>> >>> >>> >>> >>> >>> >>> >>> >>> >>> http://www.politico.com/story/2016/04/defense-pentagon-spending-assad-221776 >>> >>> >>> >>> *Meet the most hated man in the Pentagon* >>> >>> Company executives accuse Shay Assad of pursuing a "personal vendetta" >>> by hounding firms large and small to justify what they charge for weapons >>> or services. >>> >>> By Ellen Mitchell <http://www.politico.com/staff/ellen-mitchell> >>> >>> 04/11/16 05:27 AM EDT >>> >>> Updated 04/10/16 12:16 PM EDT >>> >>> [image: Description: Shay Assad is pictured. | John Shinkle/POLITICO] >>> >>> Shay Assad, the Pentagon's director of pricing, has waged an all-out >>> campaign for the last five years to reduce defense companies' profit >>> margins, the industry contends. | John Shinkle/POLITICO >>> >>> Some of the nation’s leading defense companies are declaring war on a >>> powerful enemy — an obscure Pentagon official named Shay Assad who has >>> helped cut more than $500 million from military contracts with his >>> aggressive scrutiny of their costs. >>> >>> The industry’s tactics include blanketing congressional committees with >>> proposals that would make it harder for Assad and his contracting officers >>> to get detailed breakdowns of the companies' expenses, according to >>> documents obtained by POLITICO. But Assad, the Pentagon's pricing director >>> for the past five years, refuses to back down, saying: "We are going to be >>> relentless in pursuing getting the good deal for the taxpayers." >>> >>> Story Continued Below >>> >>> “That's the way it is,” said Assad, a 65-year-old Bostonian with the >>> heavy accent to match. “If companies don't like it, people have an >>> objection to it, we're not apologizing for it." >>> >>> The result is an unlikely, all-out campaign pitting giants like Boeing >>> and Honeywell against a Pentagon official so little-known that even some >>> top defense lawmakers say they're unfamiliar with his jousting with the >>> industry*. * >>> >>> Company leaders accuse Assad — a former Raytheon executive who spent >>> more than two decades in the defense industry — of pursuing a "personal >>> vendetta" by hounding firms large and small to justify what they charge for >>> weapons or services. But Assad says he learned a valuable lesson from his >>> years at Raytheon, one of the Pentagon's largest contractors: "We generally >>> overpay for almost everything we buy." >>> >>> The contractors, who are enjoying record stock prices, are actively >>> trying to undermine him. In one proposal circulating on the Hill, they are >>> seeking to erode contract officers’ ability to demand cost data from >>> subcontractors — what companies view as an excessive grab of competitive >>> information. >>> >>> The request would weaken the grip of Assad’s cost squeeze, as the >>> Pentagon uses all the extra cost information to “manage” profit margins, >>> according to a congressional staff member with purview over the Pentagon >>> budget who was not authorized to speak publicly. Without that information, >>> the staffer explained, the Pentagon can’t demand better deals. >>> >>> Assad seems as determined as ever to make sure industry hands over the >>> data, citing the personal backing of his boss, Secretary of Defense Ash >>> Carter, who created his position in 2011 when Carter was undersecretary for >>> acquisition. >>> >>> His aggressive stance seems to be paying off. Pentagon spokesman Mark >>> Wright said Assad recently led contract negotiations for multiyear deals on >>> the Apache helicopter, C-17 transport plane and F/A18 fighter jet "that >>> returned in excess of $500M to the taxpayers." >>> >>> Wright added that "it should be obvious what the Department thinks of Mr >>> Assad. He was just awarded a 2015 Distinguished Presidential Rank Award." >>> >>> But Assad's role is little known outside the Pentagon, as some top >>> lawmakers seem to be unaware of the tension between Assad and the industry, >>> including House Armed Services Chairman Mac Thornberry (R-Texas) and >>> Ohio Republican Rep. Mike Turner, the head of the Tactical Air and Land >>> Forces Subcommittee. Though Assad oversees all DOD contracting actions >>> above $500 million, Thornberry and Turner told POLITICO they hadn’t heard >>> anything about him. >>> >>> Assad poses a unique threat to the biggest arms makers. He graduated >>> from the U.S. Naval Academy in 1972 before spending 22 years as a senior >>> executive at Raytheon, which last year was the Pentagon's third-largest >>> contractor. As director of pricing, he is also member of the civil service >>> who, unlike a political appointee, could be around for a good while. >>> >>> "It's just not true that we are negotiating profit rates that are lower >>> than what we had been doing in the past," he said. "I know, because I was >>> on the other side of the table. I'm very aware of what industry and major >>> corporations were negotiating for profit rates versus what we presently >>> do." >>> >>> Extracting and analyzing more cost data from the Pentagon's customers >>> has become one of his primary focuses. >>> >>> A congressional source said Assad has recently directed contracting >>> officers, via policy guidelines and memos, to go after this kind of >>> information. While the Defense Department already asks for cost data from >>> the larger defense players, this recent action seeks to "go lower down the >>> food chain." >>> >>> "He has gone way above and beyond what is reasonable to extract pricing >>> data," says one senior industry official. >>> >>> Assad fires back, asserting the Pentagon is simply doing what the law >>> has long required but it has historically failed to do. >>> >>> Legally, all companies involved in a sole-source contract with the >>> Defense Department are required to provide pricing data on any >>> subcontractor that provides $750,000 or more in goods and services. For >>> years, however, the Pentagon neglected to push companies on that rule. >>> >>> "The reality is it's data that they should have been providing us all >>> along," Assad said, particularly for the countless subcontractors that >>> defense giants rely on and whose costs get wrapped into the overall price >>> of the prime contract. >>> >>> "What we're saying is, 'no, it is relevant,' and frankly, there's gold >>> in them there hills at the subcontractor level," Assad said. "It is a >>> challenge for the companies because they now have to deal with people who >>> are well trained, who know what to ask for and who insist on it." >>> >>> The industry is now trying to head him off. >>> >>> In a legislative proposal sent to multiple defense committees, the IT >>> Alliance for Public Sector, supported by defense firms Boeing, Honeywell >>> and Rockwell Collins, is seeking to limit contract officers' ability to >>> reach down into subcontractor cost data — what they refer to as unnecessary >>> "flow-down" requirements. >>> >>> All companies buy parts from the commercial world "that do not relate in >>> any way to a particular contract, customer or customer requirements," the >>> proposal says. Applying defense-unique rules to nearly all aspects of >>> companies' supply chains creates a "problematic situation," as it >>> potentially cuts into "efficiency of operations and production." >>> >>> Another proposal specifically asks Congress to widen the definition of a >>> commercial item. If something is deemed commercial — rather than a uniquely >>> military item — industry can withhold most price data on it in for the sake >>> of staying a step ahead of its competition on the open market. The >>> congressional source said Pentagon efforts to limit the definition of what >>> is considered commercial allows the government wider access to cost >>> information. >>> >>> IT Alliance Senior Vice President Trey Hodgkins, who helped form the >>> proposals, said current Pentagon rules "erode" access to the defense >>> market. "I think there's broad agreement in Congress that we have to find >>> ways to lessen the burden and make this market more attractive,” he said. >>> >>> While none of the three companies would address their relationship with >>> Assad or questions on industry profit margins, Honeywell told POLITICO that >>> the proposals put forward "provide a clear path for the government to >>> ensure they are buying commercial products at fair and reasonable prices.” >>> >>> Boeing would only allow that it was "broadly supportive of acquisitions >>> reforms that ensure that our military — and the U.S. taxpayer — can take >>> full advantage of the value provided by the commercial marketplace.” >>> >>> Meanwhile, Rockwell Collins said it was focused on limiting the "impact >>> of military-unique acquisition terms which flow down to our commercial >>> supply chain," saying there are numerous small businesses the industry >>> relies on that "are adversely impacted" by current regulations. >>> >>> Assad said that in asking for price data on items that have both defense >>> and commercial applications, the Pentagon simply wants to know if the price >>> is "fair and reasonable." >>> >>> "What we're saying to the companies is 'nobody should know better than >>> you why the price you're charging me is fair, so just tell me.'" he said. >>> "The issue that we have is that … in many instances, when we've bought >>> commercial items, we haven't done as good a job as we possibly could." >>> >>> Defense companies, however, want to be treated like any other commercial >>> company — such as Apple or Samsung — when selling items to the Pentagon >>> that are also sold on the free market. >>> >>> Just as consumers willingly pay Apple or Samsung $600 for a cell phone >>> that costs a fraction of that price to make — provided the quality is good >>> enough — industry maintains that the government shouldn't care about the >>> true cost of defense equipment if the market had a hand in setting the >>> price, said Mike O’Hanlon, a defense specialist at the left-leaning >>> Brookings Institution and a longtime Pentagon adviser. >>> >>> The profit margin issue "is a big one where contractors and much of the >>> DOD acquisition workforce part ways," O'Hanlon said. Tensions can also be >>> pushed with the factor of the Pentagon "cost police" — its thousands of >>> contracting officers who aggressively seek cost data on defense equipment. >>> >>> While these actions can protect the best interest of the taxpayers, "one >>> would like to see exceptions and exemptions" when dealing with commercial >>> items, O'Hanlon said. >>> >>> Tom Captain, the vice chairman and leader of the U.S. and global >>> aerospace and defense sector at financial services firm Deloitte, backs his >>> industry clients on this question. >>> >>> "You don’t ask the car dealer, the grocery store and pizza parlor for >>> cost data — you buy based on your assessment of best price and fair value," >>> Captain said. "The Pentagon can do the same for commercial sourced items." >>> >>> Asking for cost data for commercially available technology “is not only >>> a waste of taxpayer money,” he said, it acts as a “disincentive to supply >>> to the DOD for suppliers." >>> >>> Providing too many specifics of cost data, Captain argued, could also >>> reveal to competitors how they managed to reduce the costs on a system a >>> company sells to other customers outside the government. >>> >>> "You might as well run an ad, telling your competitors your prices," the >>> industry official said, adding that companies routinely expressed "a >>> complete lack of confidence" in the Pentagon's ability to keep pricing data >>> secret. >>> >>> Despite all the criticism, Assad insists the Pentagon's practices are >>> not harming the defense industry financially. >>> >>> Over the last five years, he contends, the top five defense companies' >>> stock prices "have gone up anywhere from 67 percent to 180 percent for >>> those five companies. Record cash flows, record profits, record return on >>> invested capital." It is an assessment backed up by industry analysts. >>> >>> "We're not after their profitability, we're after paying less," Assad >>> said. "And if we can pay less and they're doing well financially, what's >>> wrong with that? If you look at what had been happening in the past, year >>> over year, we always paid more. ... That doesn't happen anymore. Year over >>> year we're paying less." >>> >>> >>> >>> Read more: >>> http://www.politico.com/story/2016/04/defense-pentagon-spending-assad-221776#ixzz45XNEgEm1 >>> Follow us: @politico on Twitter >>> <http://ec.tynt.com/b/rw?id=bKDyiUp9mr3OhNab7jrHcU&u=politico> | Politico >>> on Facebook >>> <http://ec.tynt.com/b/rf?id=bKDyiUp9mr3OhNab7jrHcU&u=Politico> >>> >>> >>> __._,_.___ >>> ------------------------------ >>> Posted by: "Beowulf" <[email protected]> >>> ------------------------------ >>> >>> >>> Visit Your Group >>> <https://groups.yahoo.com/neo/groups/grendelreport/info;_ylc=X3oDMTJmYmVvdGU5BF9TAzk3MzU5NzE0BGdycElkAzIwMTk0ODA2BGdycHNwSWQDMTcwNTMyMzY2NwRzZWMDdnRsBHNsawN2Z2hwBHN0aW1lAzE0NjAzOTMyNjE-> >>> >>> >>> [image: >>> https://groups.yahoo.com/neo;_ylc=X3oDMTJlMnM2M3IzBF9TAzk3NDc2NTkwBGdycElkAzIwMTk0ODA2BGdycHNwSWQDMTcwNTMyMzY2NwRzZWMDZnRyBHNsawNnZnAEc3RpbWUDMTQ2MDM5MzI2MQ--] >>> <https://groups.yahoo.com/neo;_ylc=X3oDMTJlMnM2M3IzBF9TAzk3NDc2NTkwBGdycElkAzIwMTk0ODA2BGdycHNwSWQDMTcwNTMyMzY2NwRzZWMDZnRyBHNsawNnZnAEc3RpbWUDMTQ2MDM5MzI2MQ--> >>> • Privacy <https://info.yahoo.com/privacy/us/yahoo/groups/details.html> >>> • Unsubscribe • Terms of Use >>> <https://info.yahoo.com/legal/us/yahoo/utos/terms/> >>> >>> __,_._,___ >>> >>> >>> -- >> -- >> Thanks for being part of "PoliticalForum" at Google Groups. >> For options & help see http://groups.google.com/group/PoliticalForum >> >> * Visit our other community at http://www.PoliticalForum.com/ >> <http://www.politicalforum.com/> >> * It's active and moderated. 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