Between 2000 and 2005 procurement spending in the federal government increased by over $175 billion dollars — 86 percent — to $377.5 billion and now 40 percent of discretionary funds are spent on contracts with private companies, according to a report compiled by House Government Reform Committee Democrats.
Based on a review of about 500 reports, audits, and investigations by government and independent bodies including the Government Accountability Office, Defense Contract Audit Agency, and Federal Procurement Data System, the report cites contract mismanagement and overcharging through non-competitive awards related to homeland security, the Iraq war and Hurricane Katrina recovery.
The report cites 118 contracts worth $745.5 billion found by government officials such as inspectors general to include significant waste, fraud, abuse or mismanagement that it says are due to a number of factors, including noncompetitive awards, abuse of contract flexibilities, inadequate oversight, and corruption.
The report also said that from 2000 to 2005 government contracting grew by 86 percent, and non-competitive contracts grew by 115 percent.
It said that the five largest contractors received over 20 percent of all contract dollars awarded in 2005.
Lockheed Martin, for example, received contracts worth more than the total combined budgets of the Department of Commerce, the Department of the Interior, the Small Business Administration, and Congress.
Halliburton saw the largest increase in government business — 600 percent — between 2000 and 2005.