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Obama seeks change in federal contracting

March 4, 2009 8:20:24 AM PST
President Barack Obama is moving to overhaul the way the U.S. government awards contracts for work to be done by the private sector, saying there have been too many abuses of taxpayer money. Obama joined Republican Sen. John McCain, his presidential campaign rival, and other congressional figures Wednesday to put his pen to an executive memorandum. The document essentially commits the administration to new marching orders for awarding such contracts, and Obama said that it could save up to $40 billion to $50 billion a year.

One area in particular that is targeted is no-bid contracts, which the administration is seeking to change so that there will be more competition for government-paid work.

Obama said that "even if these were the best of times, budget reform would be overdue in Washington."

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