
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: WEDNESDAY, October 27, 1993                   TAG: 9310270162
SECTION: NATIONAL/INTERNATIONAL                    PAGE: A-2   EDITION: METRO 
SOURCE: The Washington Post
DATELINE: WASHINGTON                                LENGTH: Medium

GOVERNMENT TO REVAMP BUYING

President Clinton on Tuesday proposed substantial changes in the way the government buys goods and services and sent Congress a new package of spending cuts, projected to save about $10 billion, that were targeted last month by the administration's "reinventing government" task force.

Under the proposed procurement changes, the Defense Department and other federal agencies would buy computers and other products off-the-shelf rather than order custom-built products that meet government specifications, some tens of thousands of pages long. For example, the military's 1980 regulation on fruitcake ran 18 pages, one of several that has contributed to public dissatisfaction with how the government spends taxpayer dollars.

"We want the marketplace, not the bureaucracy, to determine what we buy and what we pay," Clinton told members of Congress and executive branch officials gathered at the White House for the announcement.

To demonstrate how procurement rules can work against the government, Clinton disclosed that the Air Force had to turn to the Japanese government to buy 6,000 two-way, portable radios for its troops during the military buildup to the Persian Gulf War.

The Air Force had offered Motorola Inc. a contract worth more than $10 million to supply the radios, but the company could not comply with federal cost-accounting rules on short notice. Rather than spend additional time to seek a waiver for Motorola, the Air Force turned to Japan, which had announced its willingness to buy equipment for allied forces in Operation Desert Shield.

"When the government of another nation has to step in and buy something for the U.S. military because our procurement regulations are so crazy, that's a clear wake-up call that we have got to have the reforms that are being announced today," Vice President Al Gore said.

Clinton said that the procurement regulations "virtually force defense contractors to develop business practices and products that are unique only to the military," leading to higher prices for the government.

"Today, five of the top 10 U.S. semiconductor producers refuse defense business because of the burdens and special requirements the government imposes," Clinton said.

In an interview, Roger Johnson, the head of the General Services Administration, called the Clinton proposals a "big opportunity" and "long overdue," especially the recommendation for an "electronic marketplace" that would use computers to post products and update price changes, allowing federal managers to quickly find the best buy for their agencies.

The administration expects to save $22.5 billion over five years through its overhaul of the procurement system, and Clinton said he would urge the Congress to use the savings from the first year, estimated at $5.6 billion, to finance the administration's crime bill.

by CNB