WASHINGTON,
D.C. – U.S. Representative Jan Schakowsky (D-IL) today introduced legislation
that would save taxpayers hundreds of millions of dollars a year.
U.S. Representative Henry Waxman (D-CA), the top Democrat on the House
Government Reform Committee and a leader on government accountability,
is an original cosponsor of the bill.
Schakowsky
introduced the bill after a General Accounting Office (GAO) report she
had requested found that the federal government is overpaying vendors by
hundreds of millions of dollars because agencies have failed to use their
bargaining power to obtain discounts.
The
bill would require federal agencies that use a “Governmentwide commercial
purchase card,” or in other words, a government issued credit card, to
negotiate discounts with their vendors. In addition, the bill calls
on agency heads to use contracts instead of purchase cards, whenever possible,
in order to lock in long term savings.
The
GAO report will be released tomorrow during a scheduled hearing of the
Senate Government Affairs Committee. The Chair of the
Committee, Senator Susan Collins (R-ME), is a co-requester of the report
with Schakowsky.
Schakowsky,
as the former ranking Democrat on the Government Efficiency Subcommittee,
had called on GAO to investigate this and other issues dealing with financial
mismanagement and wasteful spending by the federal government.
“How
many more hearing must Congress have on GAO reports before taking real
action to bring about financial accountability in the federal government?
Taxpayers will continue to be bilked out of billions of dollars until we
act. This is commonsense legislation that will bring measured
savings to taxpayers,” Schakowsky said. |