Mugging Taxpayers in the Swamp

Townhall | 12/29/2018 | Staff
jenny124124 (Posted by) Level 3
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Let’s Do Follow The Climate Money!

The big dollar muggings in Washington these days are not done with pistols. The sophisticated weapons of choice are “sole source contracting,” lobbyists, and insiders. And the victims are not tourists, but taxpayers.

Multinationals - Game - System - Door - Government

Large multinationals game the system using the revolving door between government and the private sector, with the help of aggressive lobbying. There are so many examples, but one is the fourth largest privately- owned company in the United States, Deloitte Touche Tohmatsu Limited, which originated as one of the biggest accounting companies in America.

Today they are masters of the D.C. contracting game with sole source contracting. They are not doing anything illegal, but the end result is that taxpayers and small entrepreneurs are shafted.

Affiliates - Year - Government - Contracting - Saturday

They and affiliates haul off as much as $38 billion a year in perfectly legal, clean, government contracting. No Saturday Night Specials needed.

Federal contracting is big business, governed by dozens of federal statutes enacted by Congress, explained in dozens of legal volumes that can be found in every law library across the nation. Federal policy as provided in that governing law is based on the concept of “competitive bidding,” because as the most rudimentary economics shows, better results in terms of price and quality are obtained by competition rather than by monopoly.

Company - Crony - Contacts - Friends - Relatives

But if a company is a crony favored by contacts, friends, or relatives of company employees, or of lobbyists working for the company, that company can get “sole-source contracts” or even sole source grants, not subject to any competition. The money flows just when the contact, friend or relative working inside of some contracting government agency signs on the dotted line, giving away some share of the federal government’s trillions in annual spending.

And what happens to price and performance under such “sole-source contracts”? Price goes...
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