Re:Why Taxpayers Pay McKinsey $3M a Year for a Recent Colleg...
by iudqnolq on Thursday December 05, 2019 @06:35PM
(#21717860)
Thanks for providing the background on how this came about, it makes a bit more sense now.
Could we get the same result by allocating the GSA a flat amount based on what they need and then penalize them by cutting the budget if no one uses their services, just like we do for other agencies?
Re:Why Taxpayers Pay McKinsey $3M a Year for a Recent Colleg...
by sfuller808 on Thursday December 05, 2019 @08:45PM
(#21718589)
No, the structural/legislative design of the GSA protects it from penalties because most of Gov't procurement is routed through its offices both Military (with caveats of course) & Civilian. The GSA spends money to reduce spending.
The incentive to get more dollars if you get more under management as a contract-service-provider does make sense. They’re not a monopoly on procurement in government, despite the author writing a book about monopolies.
Note: in some cases they have monopolies on some things in government, but not procurement.