Going Big With Stimulus
Here's a trend to keep in mind, though many of you might not find it surprising:
"Big companies, ranging from AT&T to Dell to FedEx to Tyson Foods, are among those cashing in on the billions of dollars of federal stimulus money that is rolling out the door.
"Some $4.3 billion of federal money is already funding more than 1,500 projects. Of that total, 85%, or $3.6 billion worth, has been funneled to big business," according to CNNMoney.com.
The pattern matters because it seems to mirror how business is done across the federal procurement system: Speak about the importance of small firms and then award the deals to the Big Guys. It also matters because only a small fraction of the spending has occurred so far, so presumably those in charge of the cashboxes have time to change course.
On the other hand, writing the checks to the big contractors isn't necessarily a bad thing, according to some observers.
"'Out of the gate, the big players are getting the lion's share, but that's not unusual,' said Tim Dowd, chief executive of Input, a consulting firm that provides information about government contracts."
"'Companies have to have the infrastructure to handle a big pile of money being dropped in their lap and be able to put it to good use.'"
Is it just us, or does that last quote make you pause?
By Robert O'Harrow |
June 11, 2009; 3:51 PM ET
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