WASHINGTON, April 25, 2012—OMB Watch today applauded the House passage of the Digital Accountability and Transparency Act, or DATA Act (H.R. 2146). The bill to strengthen the transparency of federal government spending was approved by a voice vote with strong bipartisan support.

Conventional wisdom in Washington dictates that the private sector can always provide services at a lower cost than the federal government. A new study from the Project On Government Oversight (POGO), however, turns conventional wisdom on its head, demonstrating that the government rarely reaps the purported benefits of lower costs through the outsourcing of service work. In fact, POGO found that, on average, the government pays service contractors more than 1.8 times the amount it pays federal employees with the same education, doing the same job and performing similar tasks.

On Aug. 31, the Commission on Wartime Contracting (CWC) released its final report to Congress, detailing contracting issues in Iraq and Afghanistan. Although most media outlets focused on the sensational estimates of funds lost through waste and fraud over the course of the wars – possibly totaling $60 billion – the report makes a much broader and compelling argument for systemic contracting reforms and better contractor oversight. With the current atmosphere of austerity on Capitol Hill, Congress should heed these recommendations.