Rep. Bennie Thompson Holds a Hearing On Performance-Based Acquisitions

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Rep. Bennie Thompson Holds a Hearing On Performance-Based Acquisitions

HOUSE COMMITTEE ON HOMELAND SECURITY HOLDS A HEARING ON PERFORMANCE-BASED ACQUISITIONS

MAY 8, 2008

SPEAKERS: REP. BENNIE THOMPSON, D-MISS. CHAIRMAN REP. LORETTA SANCHEZ, D-CALIF. REP. EDWARD J. MARKEY, D-MASS. REP. NORM DICKS, D-WASH. REP. JANE HARMAN, D-CALIF. REP. PETER A. DEFAZIO, D-ORE. REP. NITA M. LOWEY, D-N.Y. DEL. ELEANOR HOLMES NORTON, D-D.C. REP. ZOE LOFGREN, D-CALIF. REP. SHEILA JACKSON LEE, D-TEXAS DEL. DONNA M.C. CHRISTENSEN, D-VIRGIN IS. REP. BOB ETHERIDGE, D-N.C. REP. JIM LANGEVIN, D-R.I. REP. HENRY CUELLAR, D-TEXAS REP. CHRISTOPHER CARNEY, D-PA. REP. YVETTE D. CLARKE, D-N.Y. REP. AL GREEN, D-TEXAS REP. ED PERLMUTTER, D-COLO. REP. BILL PASCRELL JR., D-N.J.

REP. PETER T. KING, R-N.Y. RANKING MEMBER REP. LAMAR SMITH, R-TEXAS REP. CHRISTOPHER SHAYS, R-CONN. REP. MARK SOUDER, R-IND. REP. THOMAS M. DAVIS III, R-VA REP. DAN LUNGREN, R-CALIF. REP. MIKE D. ROGERS, R-ALA. REP. DAVE REICHERT, R-WASH. REP. MICHAEL MCCAUL, R-TEXAS REP. CHARLIE DENT, R-PA. REP. GINNY BROWN-WAITE, R-FLA. REP. GUS BILIRAKIS, R-FLA. REP. DAVID DAVIS, R-TENN. REP. PAUL BROUN, R-GA. REP. CANDICE S. MILLER, R-MICH.

WITNESSES: JOHN HUTTON, DIRECTOR, ACQUISITION AND SOURCING MANAGEMENT ISSUES, GOVERNMENT ACCOUNTABILITY OFFICE

THOMAS ESSIQ, CHIEF PROCUREMENT OFFICER, DEPARTMENT OF HOMELAND SECURITY

ANNE REED, CEO, ACQUISITION SOLUTIONS

ALAN CHVOTKIN, EXECUTIVE VICE PRESIDENT AND COUNSEL, PROFESSIONAL SERVICES COUNCIL

[*] THOMPSON: The Committee on Homeland Security will come to order.

For the sake of the witnesses, just as we were about to come, we got a notice that they will have five votes very shortly. I am certain our attendance is reflective people wanting to move into the Capitol and do the votes before they come. It is my hope that we can do at least the opening statements, and then come back for the question and answer period, which should be pretty good. I want to thank Mr. Etheridge for coming to the committee so we can begin.

The committee is meeting today to receive testimony on Performance-based Acquisitions: Creating Solutions or Causing Problems. Performance-based contracting allows the government to issue contracts without specifying what goods or services it wants to buy. Instead, the government can issue a statement describing the problem it wants solved and have the private sector propose solutions. This approach can provide the needed flexibility to promote innovations by businesses, or it can be a recipe for chaos.

Let me just give you a few highlights of the department's experience with performance-based contracting. Emerge2 was a performance-based contract to develop a department-wide financial management system. It did not have clear or complete requirements. And after spending $52 million, the department scrapped the program. Deepwater is a performance-based contract program to modernize the Coast Guard fleet. In August, 2006, the department's inspector general recommended that the Coast Guard increase oversight of the program and better define requirements. This would help ensure that the contractor's activities met program goals...

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