Normally with a system like an aircraft or missile the original manufacturer will get the contracts to support, upgrade and modernize it. With older systems it is sometimes possible to move to a different contractor. This is of course aided by the fact that the Government buys the data rights to the system when they pay for the development of the equipment. This allows them to share the...
Government Industry Archive
June 2009
There are very few businesses and industries in the United States that the Federal Government is the major customer. Granted its spends a great deal of money on many things but other then defense spending it hardly makes up the bulk of customers. Now with the Obama administration moving to prop up various parts of the economy the government is not only a customer but even an owner at least...
In the same week President Obama suggested to Congress that they try to use PAYGO rules while the Treasury announced a record deficit for the past month. PAYGO means that Congress must either reduce other spending or increase revenue to cover the cost of any new spending. In theory it keeps the budget balanced as any new program is offset one way or another. Unfortunately Obama said that this...
This is a debate that has gone on-and-on and around the mulberry bush ever since the end of World War II. How much should the United States spend on defense and what is it getting for the money that is spent? The “Far Left” cries out for as little as possible, the “hardcore conservatives” for as much as can be imagined. Certainly with the cost of the U.S. military and...
Both the Federal Government and some states use the readily available labor force of people in their prison systems to do contract work. In fact for the U.S. government contracts the Federal Prison Industry (FPI) company has priority for contracts. Often they can undercut a normal company as their rate of pay is so low. This can lead to situations where BAE Systems and Pennsylvania were...
In yet another in the continuing saga of bribes related to defense contracts the Indian government suspended seven companies with recent contracts due to bribery allegations against Sudipta Ghosh. Ghosh was the former head of the Ordnance Factories Board. The allegations and evidence were so serious that the government decided to suspend the companies involved without waiting for a trial or...
All levels of the United States governments are facing a quandary about how best to maximize the result of the “Stimulus” and other spending as well as maximizing the number of jobs being created within the U.S. The original language of the $787 billion “Stimulus” bill passed by Congress put severe restrictions on buying services and goods from outside the United...
The way the Federal budget process works is that the current year budget is being executed after being passed by Congress on or about October 1st of the previous year. The next year’s budget is on Capitol Hill to be reviewed and voted on by Congress, and the budget for two years later is in development within the Executive Branch. Right now the 2009 budget is being executed which is...
One of the old saws in U.S. politics is that the states are the incubators of ideas that then move to the national level after being adopted by the Federal Government. This has certainly been true in many policy ideas and practices. California is a perfect example with their stricter vehicle emission standards or rules on safety. Unfortunately as the various levels of government in America...
An earlier post discussed about how some states were conflicted between trying to buy the most services for their dollars while protecting American jobs. Now over at BNET Intercom, Stefan Deeran, writes that the downturn in the world economy has led to companies considering “backshoring“. This term describes when a company moves jobs back to the location of their primary customers...
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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.