“Government By Contract: The White House Needs Capacity to Review and Revise the Legacy of 20th Century Reform” by Dan Guttman


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Executive Summary

The federal government overly relies on grant and contractor employees to perform the basic work of government.The core presumption of law that officials have the experience and expertise needed to account for the work of contractors and, by extension, the basic work of government, is no longer valid.  This development is neither an accident nor recent.  It is the predictable and predicted product of mid-20th century reform that produced profound successes, but left a legacy of fundamental questions that have lain unexamined by Congress and the Executive.  The White House needs the capacity to understand this legacy and revise the reform for the 21st century.  Based on the author’s assessment:

• The White House needs capacity to know which vital government functions may no longer be within the grasp of officials—and the extent to which longstanding White House policy barring contractor performance of inherently governmental functions is a placebo or fig leaf.

• The White House needs the capacity to determine whether top officials know the basic dimensions and identity of the human resources at their call.

• The White House needs the capacity to know when those doing sensitive government work on taxpayer dollars --whether civil servants or contractors-- are not subject to rules enacted to govern such activities.

• The White House needs the capacity to know whether resources needed to use and be accountable for contractors are adequate.

• The White House needs the capacity to determine how well the central tools of accountability are working.

This paper suggests that three competing models or visions for holding contractors to account now co-exist.  Each case has its strengths, but each is sub-optimal. Perhaps other models will emerge.  In any case, the task for the White House is to:

• Provide the country and itself with a truth-in-government view of the public service (contractors and officials);

• Provide itself (through OMB and its Office of Federal Procurement Policy) with capacity to understand the reality of the legacy of 20th century reform;

• Provide leadership in harmonizing the laws, rules, and ethical obligations governing those who do the basic work of government -- whether as civil servant or contractor.

Related Resources

EOM Panel Minutes:
Topic presented at EOM Panel on May 19, 2006.

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