For Immediate Release: July 31, 2009
Contact: Bette Phelan (202) 224-2441
HEARING: "Eliminating Wasteful Contractor Bonuses"
Carper Subcommittee to Continue Investigating Wasteful Contractor Bonuses
WASHINGTON – Sen. Tom Carper (D-Del.), chairman of the Subcommittee on Federal Financial Management, Government Information, Federal Services, and International Security, will hold a hearing Monday, August 3rd at 3:00 p.m. titled “Eliminating Wasteful Contractor Bonuses.”
This hearing is part of Sen. Carper’s continued effort to reduce federal government waste and encourage financial responsibility among government agencies.
Sen. Carper called this hearing to investigate whether agencies are properly using monetary incentives known as “award fees” to encourage superior performance from contractors. The Government Accountability Office has reported that agencies hand out billions of dollars annually in award fees without knowing if the additional profit is incentivizing excellent performance. Some agencies have even given contractors award fees despite describing their behavior as “egregious” and a “waste of taxpayer dollars.”
Further, even after contractors fail to deliver, many agencies “roll-over” unused bonus and give contractors a second chance to earn an award fee. Senator Carper believes this is a waste of taxpayer dollars and plans to work with the Administration to ensure contractor bonuses are used appropriately and tied closely to contractor performance.
WHAT: “Eliminating Wasteful Contractor Bonuses”
WHEN: 3 p.m. on Monday, August 3, 2009
WHERE: 342 Dirksen Senate Office Building
WITNESSES:
Panel I:
- The Honorable Jeffery Zients, Deputy Director for Management, Office of Management and Budget
- Mr. John Hutton, Sourcing Manager, Government Accountability Office
Panel II:
- Mr. Shay Assad, Director of Defense Procurement and Acquisition Policy, Department of Defense
- Mr. William McNally, Associate Administrator for Procurement, National Aeronautics and Space Administration
- Mr. Richard Gunderson, Acting Chief Procurement Officer, Department of Homeland Secretary
- Mr. Edward Simpson, Director of Office of Procurement and Assistance Management, Department of Energy
- Mr. Alan Chvotkin, Executive Vice President, Professional Services Council
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