US Hardware Branding Procurement Costs Taxpayers Half a Billion Dollars
The inclusion of brand-name specifications in federal computer hardware procurement lead to harmful consequences that needlessly cost U.S. taxpayers up to $563 million, according to a new economic study. I didn’t know that prior to 2005, the United States Air Force (USAF) purchased only Intel processors and specified this requirement in all of its procurement materials. This press release is a must read for those who pay taxes and are involved in the IT industry.
The report also found that approximately 69 percent of the applicable government solicitations for computer systems and technology in 2004 contained language that either required specific brand-name microprocessors or specified that the processor should be equivalent to a particular brand microprocessor. Federal law (Federal Acquisitions Regulation) forbids the use of brand-name specifications under most circumstances. Use of a “brand-name or equal” clause is inherently biased against non-name-brand products and encourages purchasing decisions based on brand-name recognition and perception rather than objective performance metrics.
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