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Research Paoer Joey Grismore Jr. Research Paper July 31, 2022 American Public University COLL 300 D003 Professor Steve Ryan

Research Paoer Can you imagine that our government awards a trillion dollars a year in Federal Contacts? Unlucky, for taxpayers, there is no quantitative difference in spending between either of the two political parties, Republican and or Democrats, no matter their political promises. The intent is not to expand on excessive spending but for a view of the contracting methods and process used, to ensure spending is in the best interest of the government. The Federal Acquisition Regulations (FAR) part 16 classifies two primary procurement methods Fixed Price and Cost Reimbursement. Unfortunately, the FAR fails to define when, and why a contracting official must select one over the other, leaving it up to interpretation by the contracting official, the agency’s need, and any relevant circumstances. Based on the numbers of Fixed Price awards made each year and structure and position of the two terms in the FAR, this illustrates bias toward the Firm Fixed Price procurement method. Furthermore, this bias also displays that Firm Fixed Price procurement method is preferred and used more than other methods. Spending a trillion dollars a year in Federal Contracts is not an effortless process as there are a series of steps that contracting officers must complete before awarding contracts. Throughout the procurement process there must be a focus to ensure spending is in the best interest of the government who represents the taxpayer. For example, if one were to hire a financial advisor to manage funds and create passive income, it would be ideal to check routinely to ensure that focus remains intact. Another way to think about this concept is the role of accountants who verify income statements of businesses to ensure that the integrity of creating revenue is maintained. If these processes were not afforded, it would be difficult to verify the integrity of business which is why the federal government is not exempt from that privilege. In early 2022, the organization USAFACTS.ORG (2022) shared on its website, some interesting facts, and numbers as it relates our national debt, as well as where or how our government spent its annual budget for 2021. The study showed the following:

Research Paoer In the fiscal year of (2021), the news outlet FEDMINE.US (Megan, 2022) reported that of $6.8 trillion dollars was spent in FY21, only $650.7B was in the Federal Contracting Arena. Doing the math, it is hard pressed to imagine just how the remaining $5.2 Trillion was spent. To be more precise, it also identified the numbers of companies receiving award to be over (118k) different companies. What the report does not show is how many of these companies received multiple awards. Based on the spending amount subject alone, one’s interest could be heighten for the need to know just how any of this money was spent, and was it spent within the best interest of the government who represent taxpayers. According to the Congressional Budget Office report (2021), the lead in spending is credited to all Defense Agencies respectfully, followed by the Health & Human Services, Department of Energy, the Veterans Administration, NASA and Homeland Security as they agencies alone accounted for nearly 84% of the (118K) total contracts awarded. The chart below gives an illustration of how much our armed forces spends in federal contracts each fiscal year. It is clear the level of spending continues to grow due to the demand needed for supplies and services.  The federal government collected $4.1 Trillion in revenue for the Fiscal Year [FY] 2021  The federal government spent $6.8 Trillion in [FY]2021  Increased spending by 1% only after an increase of 45% in [FY]2020  The spending was 68% more than collected from the previous year [FY]2020  The natin deficit was $2.8 trillion after [FY]21

Research Paoer **The website also provided a minimalistic chart showing just how much each government agency awarded in federal contracts over the last four years. Data as of 1/3/22, Source Fedmine

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