Procurement/Government Contracting

Background

The U.S. Chamber has a long-standing policy that the government should not produce goods and services for itself or others if acceptable privately owned and operated services are or can be made available for such purposes. The government saves billions of dollars when it partners with and invests in private sector companies. This in turn helps sustain our nation’s competitive edge in industries such as defense, information technology, and management. Despite these benefits, the government continues to perform countless commercial services, even though business has repeatedly proved that it can provide these services at a lower price, with higher quality and a faster delivery schedule. The Chamber formed the Privatization and Procurement Council in October 2001 to promote and protect private sector involvement in the federal market and to maximize business prospects.

The federal government procures more than $250 billion annually, which amounts to tremendous opportunities for the private sector. In the post-9/11 world, the government is increasingly relying on the private sector to provide products and services to protect our homeland. Government must continue to streamline the acquisition process, ensure a fair and open procurement system, and rely more on the private sector for the goods and services it needs. Federal procurement requirements often create regulatory inflexibility and impose costly administrative burdens on industry with little value to taxpayers. The federal government must undertake more reforms that reduce government restrictions, eliminate government monopolies, and promote a level playing field for all interested firms.

U.S. Chamber Position

The Chamber will continue to work to increase business opportunities and profitability for the private sector in the federal market by advocating a fair and efficient contracting process and limits on unfair government competition. The Chamber will also support streamlining the policies and procedures that govern outsourcing decisions and transferring more of the government’s commercial activities to the private sector. Among the Chamber’s priorities are ensuring that no government entity has special status in the procurement process and advocating comprehensive, governmentwide Federal Prison Industries reform legislation.

Staff Contact Information

Economic Policy
(202) 463-5620