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DRAFT

Target Action Plan #33

33 Make all government contracts, sub-contracts and grants into time and material type contracts/grants with no profits, overhead, fees or other percentages

(Updated June 4, 2016)

(This is a work in progress. Please provide comments/suggestions/additional actions to PeopleNow.org by email: refinetheplan@peoplenow.org or Fax 703-521-0849)

 

33.1     Introduction


This plan outlines the Target Action Plan required to:


TABLE OF CONTENTS

 

33.1     Introduction

 

33.2     Purpose

 

33.3     Objectives

 

33.4     Actions:

 

33.5     Background


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33.2     Purpose


This plan outlines Individual Actions to

 

33.3     Objectives


The objectives of this plan include:

 

33.4     Actions:

 

33.4.1 Use time and materials (T&M) type contracts, as described here, for all future government contracts and grants. Do the same for selective existing contracts on a contract by contract basis. Under these T&M contracts, there will be a limit on the individual actual salary and contractors will be paid the actual costs of:

 

33.4.1.1    Direct labor at living wage "Davis-Bacon" rates expanded to include managers, professionals and all other workers

 

33.4.1.2    Employee benefits, sick leave, maternity leave, paid vacations

 

33.4.1.3    Materials purchased using T&M contracts also.

 

33.4.1.4    Land, buildings, facilities and equipment usage


Contractors will not be paid any overhead, G&A, profits, fees or any other percentage type charges

 

33.4.2  Revise and simplify acquisition, contracting and wage determination (Davis-Bacon and related Acts, http://www.dol.gov/whd/about/history/whdhist.htm, http://www.gpo.gov/davisbacon) legislation, regulations, procedures and practices to reflect the above.

 

33.5     Background


Under the current fixed price contract with overhead and profits the government more than often changes its mind it takes months to make the changes. There are massive overruns and many executives receive huge salaries and benefits which exceed the value of their work.


With time and material bookkeeping, proposal and tracking would be much easier and it would be harder for contractors to overcharge. There should be progress reports with actual drafts of chapters submitted according to a schedule. The government rep overseeing the project should know the men working on the project and encourage them to do good work. Everybody is born wanting to work


This approach will greatly reduce contract costs because existing records will be used for all billings