• News
    • Latest news
    • News search
    • Health
    • Finance
    • Food
    • Career news
    • Content series
    • Try Devex Pro
  • Jobs
    • Job search
    • Post a job
    • Employer search
    • CV Writing
    • Upcoming career events
    • Try Career Account
  • Funding
    • Funding search
    • Funding news
  • Talent
    • Candidate search
    • Devex Talent Solutions
  • Events
    • Upcoming and past events
    • Partner on an event
  • Post a job
  • About
      • About us
      • Membership
      • Newsletters
      • Advertising partnerships
      • Devex Talent Solutions
      • Contact us
Join DevexSign in
Join DevexSign in

News

  • Latest news
  • News search
  • Health
  • Finance
  • Food
  • Career news
  • Content series
  • Try Devex Pro

Jobs

  • Job search
  • Post a job
  • Employer search
  • CV Writing
  • Upcoming career events
  • Try Career Account

Funding

  • Funding search
  • Funding news

Talent

  • Candidate search
  • Devex Talent Solutions

Events

  • Upcoming and past events
  • Partner on an event
Post a job

About

  • About us
  • Membership
  • Newsletters
  • Advertising partnerships
  • Devex Talent Solutions
  • Contact us
  • My Devex
  • Update my profile % complete
  • Account & privacy settings
  • My saved jobs
  • Manage newsletters
  • Support
  • Sign out
Latest newsNews searchHealthFinanceFoodCareer newsContent seriesTry Devex Pro
    • News
    • News

    Obama Contracting Overhaul Could Lead to Changes at USAID

    By David Francis // 06 March 2009

    President Barack Obama announced on March 4 that he is revamping the process by which the U.S. government gives out contracts in an effort to stoke competition and cut down on wasteful spending.Obama ordered White House Budget Director Peter Orszag to work with agencies and the Cabinet to come up with a plan to reduce contracting waste by July 1. He also ordered Orszag to develop guidelines that end superfluous no-bid and cost-plus contracts that allow prices to go up over the course of a job."There is a fundamental public trust that we must uphold. The American people's money must be spent to advance their priorities – not to line the pockets of contractors or to maintain projects that don't work," Obama said.Government spending has more than doubled since 2000, from $200 billion then to $500 billion now. According to Obama, these changes have the potential to save up to $40 billion a year in wasteful government spending.These changes, if implemented, will likely have the largest effect on the defense contracting industry, which has seen the largest increase in government spending in the last decade. But Obama's proposed changes could also have a dramatic impact on the way USAID does business.There is a controversy within the development community as to what kind of contracts USAID prefers. Because the agency lacks resources to monitor all contracts, it tends to give out these types that don't require much oversight – a lump-sum contract for instance, in which the contractor is paid a flat fee for work with little accountability during the process. If Obama's proposals come to be, such practice could change.Compared to defense spending, USAID spending is a drop in the bucket. Whatever regulations are drafted could deal specifically with rewards coming out of the Pentagon and have little impact beyond it.

    • Trade & Policy
    • Funding
    Printing articles to share with others is a breach of our terms and conditions and copyright policy. Please use the sharing options on the left side of the article. Devex Pro members may share up to 10 articles per month using the Pro share tool ( ).

    About the author

    • David Francis

      David Francis

      David is a Washington-based journalist and former Devex staffer who spearheaded Devex's "Obama's Foreign Aid Reform" blog. He has written for the Christian Science Monitor, Pittsburgh Post Gazette, SportsIllustrated.com, San Francisco Chronicle, Foreign Policy magazine, and the Washington Monthly. David holds an undergraduate degree from the University of Chicago and a graduate degree from Georgetown University.

    Search for articles

    Related Jobs

    • Individual Consultant: Analysis of the Regulatory and Political Framework for Marketing in Agri-Food Systems in Burkina Faso
      Alliance for a Green Revolution in Africa (AGRA)
      Burkina Faso | West Africa
    • Head of Mission (Ukraine)
      Kyiv, Ukraine | Ukraine | Eastern Europe
    • Donor Relations Specialist
      Fairfax, Virginia, United States | Virginia, United States | United States | North America
    • See more

    Most Read

    • 1
      Opinion: Mobile credit, savings, and insurance can drive financial health
    • 2
      FCDO's top development contractors in 2024/25
    • 3
      Strengthening health systems by measuring what really matters
    • 4
      Opinion: India’s bold leadership in turning the tide for TB
    • 5
      Reigniting momentum for maternal, newborn, and child health

    Trending

    Financing for Development Conference

    The Trump Effect

    Newsletters

    Related Stories

    The Trump EffectHas 'sloppiness' left USAID partners to clean up the mess?

    Has 'sloppiness' left USAID partners to clean up the mess?

    Devex Pro LiveWill USAID partners get paid? The verdict is still out

    Will USAID partners get paid? The verdict is still out

    Devex NewswireDevex Newswire: The US government sticks to its guns on grants, contracts

    Devex Newswire: The US government sticks to its guns on grants, contracts

    The Trump EffectUSAID contracts and grants still being terminated despite court order

    USAID contracts and grants still being terminated despite court order

    • News
    • Jobs
    • Funding
    • Talent
    • Events

    Devex is the media platform for the global development community.

    A social enterprise, we connect and inform over 1.3 million development, health, humanitarian, and sustainability professionals through news, business intelligence, and funding & career opportunities so you can do more good for more people. We invite you to join us.

    • About us
    • Membership
    • Newsletters
    • Advertising partnerships
    • Devex Talent Solutions
    • Post a job
    • Careers at Devex
    • Contact us
    © Copyright 2000 - 2025 Devex|User Agreement|Privacy Statement