Government Industry Archive

May 2009

Will Ford Lead in Contracting When the Feds Own Stakes in GM and Chrysler?

By David P. Hamilton | May 14, 2009

If the federal government ends up owning significant equity stakes in GM and Chrylser, will the automakers be able to participate in competitively-bid contracts? Will Ford — and perhaps foreign automakers — have a real edge as a result? BNET Auto blogger Steve Miller ponders the procurement consequences of the government’s auto-bailout plans.

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Lack Of Basic Math Skills Hamper Discusson Of Government Spending

By Matthew Potter | May 14, 2009

Yesterday the Trustees of Social Security released their annual report on the state of the system. To sum up the situation it is not good at all. Due partly to the economic downturn in the U.S. economy inflows into the system have been much reduced. This has led to a prediction that Social Security will go into deficit in 2016. This is a year earlier then last year’s report. The...

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LOGCAP III Illustrates Why Government Contracting Can Be Prolonged

By Matthew Potter | May 14, 2009

The U.S. Army even before the invasion of Iraq in March, 2003 utilized private contractors to provide housekeeping services. This was especially true overseas in places like Kuwait. The contracts used to provide these services were called LOGCAP. KBR a large company that did this kind of work for the U.S. government as well as private companies was chosen as the prime for LOGCAP in 2001....

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EADS Mirrors Boeing In Earnings Report

By Matthew Potter | May 13, 2009

EADS is the largest aerospace company in Europe as is Boeing in the United States. Boeing was the only major defense contractor to report a loss for the recent quarter. EADS announced yesterday that they too had a loss. In Boeing’s case the military programs turned a profit but the cancellation or deferment of civil aircraft sales drove their losses. EADS also took a big hit due to the...

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Stimulus and Recession Leads To Shifts in State And Federal Relationship

By Matthew Potter | May 13, 2009

Since World War II the Federal government has slowly been sending more and more money to the states. These funds are not for specific Federal projects but to aid in various programs that the state’s manage and also use their own funds for. With the Stimulus Bill and the effects of the Recession on state tax revenues the Federal government has now become the largest source of funds for...

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Army National Guard Issues Advertising Contract While Cutting Force

By Matthew Potter | May 12, 2009

The Army National Guard (ARNG) Bureau awarded a contract to CACI to provide advertising aid and services to the various state organizations. The contract is worth up to $84 million if all options are exercised. The initial contract is for one year with four option years. This is an expansion of work previously done for the ARNG by CACI. The contract will allow the different state ARNG to use...

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Criticism Of Obama's Defense Budget Mounts

By Matthew Potter | May 12, 2009

Unfortunately for any administration there will always be criticism and complaint about the budget they submit. This is especially true for an incoming one trying to put its stamp on military strategy and priorities. In the United States defense strategy’s most public face is what is purchased. Today the new administration released details on the full FY10 request for the Defense...

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Spending Priorities Differ Among Politicians in Minnesota

By Matthew Potter | May 11, 2009

The Republican Governor of Minnesota, Tim Pawlenty, just vetoed the a bill that funded economic development across the state. The reason given was that the City of St. Paul was using the bill to forgive a $33 million loan from the state used for a hockey arena in the city. The city had used the loan a part of paying to build the Xcel Energy Center in 2000. The arena is used for concerts,...

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The Federal Budget Is Unmanageable

By Matthew Potter | May 11, 2009

With a total planned spending of $3.5 trillion and 535 individuals attempting to influence it the Federal government’s budget has become unmanageable. There is so much spending on so many different things that nobody really seems to have control of it. To add to the problem each member of Congress seems to have programs that only they care about and make sure get funded. This is why you...

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Obama's Budget Cancels Senator Byrd Priority

By Matthew Potter | May 8, 2009

Over the last fifty years or so Senator Robert Byrd (D-WV) has become the king of pork.  He has rained funding on his state for institutes, facilities and roads. Especially roads, to the point of excess where large divided highways end at the Virgina border and become two lane country roads. One of the most recent road programs that Byrd has been pushing in West Virginia is Corridor H. This...

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About Government Industry

BNET Government provides daily industry trends and global news coverage with insights for managers and executives within the world wide business of government contracting. We analyze new and interesting contract awards, government policy changes, and the trends in procurements and spending. There will also be discussions of the sector with a focus on small and innovative companies and business lines. The world's governments spend billions each year on a variety of hardware and services and the site will discuss how the money is being allocated.