Following correct processes is key on tracking government spending
In his recent Federal Coach column, “How to avoid negative headlines and stay out of trouble” in the Washington Post, author Tom Fox said federal managers need to identify and prevent problems from occurring in the first place.
Fox said “The pictures of a certain General Services Administration employee posing in a hot tub in Las Vegas provide an all-too graphic reminder” about how problems in federal agencies can quickly go public.
There are technologies and tools available that can help federal agencies identify and prevent problems with inappropriate government spending, says Eric Zoetmulder, product marketing director at Cary, N.C.-based SciQuest. His company offers a combination of products, services and analytics that helps governments, academic, healthcare and research-centric organizations turn their spending into a source of savings. Here are Zoetmulder’s views in response to Govpro’s questions.
Govpro: Can federal agencies successfully eliminate inappropriate spending?
Eric Zoetmulder:Part of the issue is perception. In today’s economic environment, I don’t think the GSA should have held a conference in Las Vegas. However, there remains different set of rules for public and private organizations. What’s acceptable behavior for Apple and IBM is not acceptable for the federal government. In the private sector, there is the recognition that rewarding employees helps boost morale and improve the overall working environment. The federal government, however, operates under a different set of standards.
There are also complex rules and procedures dictating how federal agencies spend money and source goods and services. Federal agencies often have very complex regulations and rules governing the overall purchasing process. Some of these are overly complex and cumbersome in my opinion, and actually create the inefficiencies and add costs that they purport to eliminate.
Another challenge that GSA and federal agencies face is that they often do not decide on what goods and services to purchase. Congress and the federal government often dictate the budgets and purchases, then agencies must merely manage within the budget they are given. GSA’s role is more of a regulatory one.
We see many of our customers facing a similar dilemma. For example, an IT director may decide on the services that he or she needs. It’s then up to the procurement department to decide on the steps to take to ensure that the director and the organizations receives the best quality for the best price.
Govpro: What steps should GSA and other federal administrators take to rein in extravagant or inappropriate spending?
EZ: Procurement professionals in the federal government often have limited say or oversight in buying decisions. They, however, can help control maverick spending and ensure that government employees are taking advantage of existing contracts. Focusing on contract compliance and making sure people follow the correct processes is a critical component. In this way, spend control is really the driver for defining what is wasteful government spending.
By focusing on contract compliance and best practices for sourcing and purchasing, GSA administrators can increase overall efficiencies and ensure that the government is realizing maximum value. In addition, price shouldn’t be the overall determining factor when making purchasing decisions. It may be prudent to pay a little more for a higher-quality good, which will last longer and be more effective versus spending less for a cheaper—and more cheaply made—product.
Typically, overspending is caused by a lack of control and insight into historical and current spending and future needs. By exerting more control over the process, you can avoid the overspending discussion all together.
Govpro: Do most federal agencies successfully and adequately control spending of tax dollars within their organizations?
EZ: There is no doubt in my mind that big improvements can be made by reducing the complexity of processes, laws and requirements that manage the current environment. Due to the sheer size of the federal government, you have to look at technology as an enabler to create insight and transparency in government spending. Most importantly you need the ability to plan ahead. That will help you make decisions on which or how much services a federal agency should or should not provide. It is really difficult for the federal government to simply stop providing certain services without real insight in spend and value delivered. Without real data, you can waste a lot of time debating what is appropriate versus inappropriate.
Govpro recently got the
views of Andy Howard, a partner with the
Alston & Bird law firm, on how agencies can minimize improper government spending.
