Agencies are getting too attached to incumbent contractors, watchdog finds

Agencies are getting too attached to incumbent contractors, watchdog findsBy Robert Brodsky rbrodsky@govexec.com August 26, 2010

Federal agencies are failing to maximize opportunities to make contracts competitive, often because of poor management or because officials have grown comfortable with incumbent contractors, according to a new report from the Government Accountability Office.

The watchdog reviewed trends in noncompetitive contracts during the past several years and discovered a number of questionable business practices by contracting officials and program managers. GAO found 44 percent of all federal contracts in fiscal 2009 either were not placed up for competition or attracted only one bid.

The report (GAO-10-833), which the House Oversight and Government Reform Committee requested, highlighted contracts that appeared to be written with such narrowly defined requirements that only one company could reasonably compete. In other instances, program offices pressed for follow-on contracts to be awarded without competition to the existing company because it would be more expeditious since the offices already had formed a relationship with the firm.

$50 million in FY10 funding for MCC rescinded

This type of legislation could be a signal of times to come. Cash strapped US may divert international development funding to Domestic programs.

$50 million in FY 2010 funding for the Millennium Challenge Corporation (MCC) was rescinded in order to provide funding for education and Medicaid as part of the amended bill H.R. 1586 (FAA Air Transportation Modernization and Safety Improvement Act; Public Law #111-226).

Text from HR 1586 Found Here
SEC. 328. (a) MILLENNIUM CHALLENGE CORPORATION.—Of the
unobligated balances available under the heading ‘‘Millennium
Challenge Corporation’’ in title III of division H of Public Law
111–8 and under such heading in prior Acts making appropriations
for the Department of State, foreign operations, and related programs,
$50,000,000 are rescinded.
(b) CIVILIAN STABILIZATION INITIATIVE.—
(1) DEPARTMENT OF STATE.—Of the unobligated balances
available under the heading ‘‘Department of State—Administration
of Foreign Affairs—Civilian Stabilization Initiative’’ in
prior Acts making appropriations for the Department of State,
foreign operations, and related programs, $40,000,000 are
rescinded.
(2) UNITED STATES AGENCY FOR INTERNATIONAL DEVELOPMENT.—
Of the unobligated balances available under the
heading ‘‘United States Agency for International Development—
Funds Appropriated to the President—Civilian Stabilization
Initiative’’ in prior Acts making appropriations for
the Department of State, foreign operations, and related programs,
$30,000,000 are rescinded.

Taxes for expats working for USAID in India?

Here is a link to guidance from the USAID/India mission concerning tax liability for foreign contractors in India. The bottom line is that expats are not responsible for local taxes. US taxes, still have to pay.

www.usaid.gov/in/Pdfs/ipn_08-001.pdf