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Report: Wasteful Government Spending at All-Time High

June 27, 2007 1:56 PM

Reportwasteful_mn The U.S. government has committed to spend a record-high $1.1 trillion with companies holding government contracts "plagued by waste, fraud, abuse or mismanagement," according to a new report by the House Oversight and Government Reform Committee.

The report blames the rise in bad spending on a sharp increase in noncompetitive contracting and a general increase in the use of private companies to perform government functions.

More than $200 billion in taxpayer money was spent on projects for which only one or a handful of companies submitted bids, the committee found. 

That figure has more than tripled since 2000, according to the report, and now comprises more than half of all government spending outside of entitlement programs like Medicare, Medicaid and Social Security.

"The numbers -- there's not an iota of justification for more than half of all contracts being no- or limited-bid contracts," said Keith Ashdown of Taxpayers for Common Sense, a non-partisan Washington, D.C.-based group which scrutinizes federal spending.

Ashdown said he doubted senior government officials were letting so many troubled no-bid contracts to "cronies" but were doing it out of laziness.

"They knew that, until a few months ago, Congress wasn't minding the store," he told the Blotter on ABCNews.com, referring to the Democrats' takeover of the House and Senate last November. "They could do whatever they wanted."

According to the report, the committee based its findings on a federal database of government spending, and more than 700 reports by government auditing and investigations offices.

In a fact sheet released in response to the report, the Bush administration said it was "committed to strengthened use of competition and effective contract management and oversight."

Do you have a tip for Brian Ross and the Investigative Team?

This post has been updated.

June 27, 2007 | Permalink | User Comments (55)

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your best move right about now concerning this country would be to get correct with God Almighty so that these problems WILL get straightened out. Stop trying to handle situations on your own and start praying to Jesus Christ. This world is taking every turn for the worse for everyone involved.
THIS IS NOT ABOUT ANY RELIGION...ITS ABOUT A RELATIONSHIP TO MAKE THINGS BETTER.

Posted by: Jessica | Jun 27, 2007 3:43:27 PM

That's what the politicians are in it for, our tax dollars. Why would someone spend $30,000,000 of their own money, on a campaign for a four year job that pays $150,000/yr? Answer: because there is one hell of a payoff.

Posted by: Tuthmosis III | Jun 27, 2007 3:55:47 PM

please keep reporting on this run-a-way spending. i think it is because Chaney was with halburton at one time.
thanks
c.c. elliott

Posted by: cleveland elliott | Jun 27, 2007 4:03:20 PM

Taxpayers for Common Sense? That says it all. A real unbiased scource!

Posted by: Mitch | Jun 27, 2007 4:07:21 PM

This does not surprise me at all. And they talk of government waste an ineffeciency. I'd rather have that than what is going on now. These pirates are going to bankrupt this country.

Posted by: Jerome A. Stoll | Jun 27, 2007 4:12:43 PM

Clearly we need to elect a Democratic executive and legislative branch to ensure some fiscal responsibility. The republican party's proclaimed principles are all lies intended to seduce voters, you know the ones about reining in gov't spended, not getting involved in nation building, protecting individual liberties and rights, and standing up for the rule of law. All that matters to Bush et. al. is increasing the wealth and power of themselves and their croniew.

Posted by: Sean | Jun 27, 2007 4:22:37 PM

Jessica, Jesus Christ is going to balance our budget and reduce wasteful spending? Absurd. How about coming together as free thinking Americans and electing officials that will be fiscally responsible?

Posted by: Rich | Jun 27, 2007 4:39:54 PM

NOOOO!!!!! Do ya think?! You mean under a bush administration, a "conservative rule" Geee.... now who would have predicted this?

Posted by: Dismal Leadership Dooms US | Jun 27, 2007 5:03:21 PM

It won't change until Dubya gets out of office. Nancy Pelosi, with her pledge not to impeach, has told the Presdent and Vice-President they can do anything they want with no threat of punishment. Hopefully, Waxman will be able to talk some common sense in her head.

Posted by: Bill Humphres | Jun 27, 2007 5:07:13 PM

Until, we the voters, realize that we are hiring these clowns to manage the budget and business of this country, not to legislate morality we will be left with this type of representation. We allow our votes to bought by the big spenders who are pandering the devisive moral issue (gay marriage, abortion, pornography, drug abuse, etc.). Bring all campaigns under public funding and our tax bill will go down and special interest groups lose leverage. Our representative would be working for us.

Posted by: BooMan | Jun 27, 2007 5:15:06 PM

Still happy you voted for Bush?

Posted by: gotcha | Jun 27, 2007 5:22:04 PM

Yeah, ole Bushie said he was going to run this Government like a corporation, and this is what Corporate Capitalism looks like folks...

SURPRISE.

Posted by: Ron | Jun 27, 2007 5:22:26 PM

Dick Cheney runs this government the way he ran Halliburton. Why do you think Halliburton needs all those big government contracts he's steered their way since he moved into the Naval Observatory?

Posted by: Carl O. | Jun 27, 2007 5:29:48 PM

The U.S.A. is in a catastrophic position due to the growing pains of a young nation. I AM SICK TO MY STOMACH to realize it will take longer than my productive lifetime to flush the trash from our government's 200 year old system, and to be able to COUNT on/hope for something better (judges, etc.) This modern day mess promotes mass confusion/labeling of the %40 dropout rate in depressed city's high schools across the nation.

Posted by: Mark Bouchard | Jun 27, 2007 5:32:04 PM

no way... not during a conservative rule... no way could this happen.....
( ( ( ( ( ((( PSYCH!!! ))) ) ) ) ) )

Posted by: Jack in DC | Jun 27, 2007 5:34:29 PM

Nice going, W.

Posted by: Rick | Jun 27, 2007 5:38:34 PM

i second the motion on the jessica and tuthomosis comment, the thruth is no government in this earth that could make thing good its all about the moral issue that is important for us voter to look for a better leader regardless of his religious affiliation,i hope the system we have in this country will not become a 3rd world country in term of corruption and we must understand the power of lobbyist that infect the whole system. the lobbyist are ex congressmans and senators that are still with power its acompadre system that excist and will continue to be arround.

Posted by: eddie | Jun 27, 2007 5:57:34 PM

You kind of get the feeling we elected a bunch of looters and opportunists in 2000 and 2004. They exist on both sides of the fence, but there is a special tradition going back to the Boston Brahmans of using govt. service to fleece the sheeple on a particularly staggering scale. Mix in Wallstreet and Big Oil during a Republican administration and oh my, we're headed for one big hang-over.

Posted by: Steve Lindsey | Jun 27, 2007 6:35:58 PM

This isn't about Jesus Christ. It is about YOU and ME treating one another and this world with RESPECT and for once in the history of mankind, putting SELF INTEREST AND GREED aside for the betterment of our brothers and sisters... can it be done? Nah... GREED RULES US. ECONOMY over ECOLOGY. PROFITS over CHARITY.... that is the creed that is driven by the Power Lust that has a stranglehold on this nation now.

Posted by: Dismal Leadership Dooms US | Jun 27, 2007 6:37:24 PM

BOOT EM ALL OUT, and vote Libertarian Ron Paul for REAL CHANGE!

Posted by: Jennifer | Jun 27, 2007 7:06:04 PM

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