Letter To Erskine Bowles, Executive Director of the National Commission on Fiscal Responsibility and Reform, Unites States of America

Letter

Today, U.S. Senator Brown (R-MA) sent the following letter to Erskine Bowles, Executive Director of the National Commission on Fiscal Responsibility and Reform. In the letter, Senator Brown outlines some of his ideas for reducing our nation's alarming level of debt and asks the Administration to work with Congress to eliminate waste, unnecessary spending, and fraud.

Text of the letter:

Mr. Erskine Bowles

Executive Director

National Commission on Fiscal Responsibility and Reform

1650 Pennsylvania Ave., NW

Washington, DC 20504

Dear Mr. Bowles:

One of my key priorities in the Senate continues to be tackling the long-term fiscal crisis and not burdening our children and grandchildren with an insurmountable level of debt. In Fiscal Year 2009, the federal budget deficit totaled $1.4 trillion, the first time it has ever topped $1 trillion, and in Fiscal Year 2010 it remains at record levels at almost $1.3 trillion. These record deficits have contributed to an alarmingly high total federal debt of just over $13 trillion and make the case that the Administration and Congress must work together to eliminate wasteful and unnecessary spending. One such significant area to achieve savings is in the federal acquisition system. I appreciate the Administration's recent work to proactively address various acquisition streamlining initiatives, which represent a very good start to addressing these issues. More needs to be done, though, and I look forward to working with the Administration to identify additional areas for savings.

As the Ranking Member of the Ad Hoc Subcommittee on Contracting Oversight, of the Senate Homeland Security and Governmental Affairs Committee, I believe adopting sound government acquisition practices and leveraging the federal government's enormous purchasing power can achieve substantial savings and help reduce our national debt. For example, a major area of concern is the Centers for Medicare and Medicaid (CMS), which is responsible for providing health care to more than 100 million beneficiaries and expending more than $700 billion per year. Unfortunately, at a time when our nation can least afford it, these funds are at great risk of fraud. Recent Congressional testimony estimates that $60 billion, or approximately 13 percent of our nation's Medicare spending, is at risk of fraud. I have spoken to Donald Berwick, M.D., Administrator of CMS, to ask him what Congress can do to provide CMS with the resources and legislation necessary to achieve this mission and reduce fraud.

Through my work on the Subcommittee, I have developed additional concepts that may build upon the Administration's initiatives in the area of acquisition reform. I am pleased to inform you that my acquisition initiatives have been favorably received by the Honorable Daniel Gordon, Administrator of the Office of Federal Procurement Policy. These initiatives include: 1) mandating federal strategic sourcing throughout the federal government to leverage the government's purchasing power; 2) mandating "affordability" as a requirement for all acquisitions; 3) integrating acquisition costs and successes into the performance measures of acquisition programs and personnel; 4) encouraging maximum use of the "prompt payment discount;" 5) promoting the use of direct vendor delivery where practicable; and 6) reforming the contract closeout process by streamlining and/or eliminating low-risk requirements. Beyond these common sense ideas, I request that you make recommendations regarding the bold measures that could be taken to dramatically reduce spending levels. Experts believe that as much as $1 trillion in savings could be realized in a relatively short period of time by applying the best practices from private industry to government procurement and supply chain management.

I would appreciate your consideration of these cost saving measures in your Commission's upcoming December 1, 2010 report to the President. My sincere hope is that we can work together to maximize savings and efficiencies through sound acquisition practices. If you have any questions regarding these initiatives, please contact my Staff Director of the Ad Hoc Subcommittee on Contracting Oversight, William Wright at (202) 224-4543.

Sincerely,

Scott P. Brown

Ranking Member

Subcommittee on Contracting Oversight

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