The Obama administration has all the reasons to believe that agencies across the current American government have awarded too much work to vendors, adding that agencies have awarded contracts that were not in the best interest. Contrary, the Office of the National Intelligence (ODNI) has issued a report to a Washington Post about the intelligence community and other agencies high dependence on contractors to carry out its work. In a story headlined “National Security Inc.reporters state that a two year investigation brought forward that contractors perform government jobs fundamentally and in every counterterrorism agency. A statement from Daniel Gordon, Administrator of the Office of Federal procurement Policy (OFPP) inside the Office of Management and Budget, says that one out of every six dollars goes to the private sector.

Number reduction

From the year 2009, administration officials have been trying to reduce the number of contractors in federal agencies. Officials have pushed insourcing jobs that were previously outsourced, including those that are not essentially governmental.

In 2009, the President set a course of procurement reform which had been increasing over a few years with multiple bans on public-private competitions for federal work. For contract basis the government has slightly decreased the number of contracts with riskier aspects. These include sole- source and cost plus-award-fees contracts.

Why and how 3rd party enters

In the competitive world it becomes a major challage to be accustomed with huge market competition. Thus the necessity to be fast and perfect in serive and production is a ultimate condition to be successful. After 9/11, USA economy needed a huge backlift which was given by those 3rd party who enabled them to keep their market at that. But till now they couldn’t get out of this entrapment due to several reasons.

On Government’s defense.

According to experts, the terrorist attacks threw the government into a ‘reactionary mode’ and it needed much expertise to be able to quickly ramp up its new efforts. Such industrial expertise include combining numerous independent agencies for creating the Homeland security department. Also by beefing up its counterterrorism agencies and the military.

To be able to do this, industries offered fast response to the government’s immediate pressing needs.


“Government function” are jobs which only a federal employee can carry out and because they are required by the government to a certain course of action.

For example, a Federal employee can sign a government contract on the government’s behalf because it obligates the expenditure of tax money.

In its report, the post approximates that 265,000 of 854,000 people with top secret clearances are contractors. This make up to 31% of the total. ODNI said that the figure might be lower than those estimates. Contractors who support civilian and military staff members make up to 28% of the total workforce.