Newspaper article THE JOURNAL RECORD

Review Ordered of Government Service Contracts

Newspaper article THE JOURNAL RECORD

Review Ordered of Government Service Contracts

Article excerpt

Review Ordered of Government Service Contracts

WASHINGTON _ Budget Director Leon Panetta ordered a government-wide review of service contracts with private businesses Tuesday to see if the $100-billion-a-year practice is overused. "Contracting is one of the primary means by which the government spends the taxpayers' dollars," Panetta noted in a letter to all department and agency heads. "But it is possible that some of those dollars could be saved by procedural reforms and by taking a hard look at whether government does too much contracting out." Panetta asked the officials to look at all their current contracts for services to see if they are cost-effective and can be justified. The Office of Management and Budget called the review part of the Clinton administration's effort to streamline government management practices. Continental Bankruptcy Hearings Begin

WILMINGTON, Del. _ A federal bankruptcy judge began hearings Tuesday on whether to confirm Continental Airlines' bankruptcy reorganization plan. U.S. Bankruptcy Judge Helen Balick has scheduled the hearings to run through Friday, but many expect the proceedings to go into next week. The first and only witness Tuesday, a financial adviser to Continental, said the airline would be a viable business after the reorganization. Brian Keane of Smith Barney, Harris Upham Co., said Continental's cost structure would be among the lowest in the industry when it finishes the reorganization. Firm Moves 300 Jobs to Fort Smith

FORT SMITH, Ark. _ Beverly Enterprises Inc. plans to move more than 300 white-collar employees from Virginia to the nursing home company's headquarters in Fort Smith, a company executive said. "Having everyone in one spot is going to help us accomplish our goals and will help us just communicate better with each other," said David Banks, Beverly's chairman and chief executive officer.

Banks said the move from Virginia Beach, Va., is the final step for the company to complete its consolidation to cut internal costs. The company is coming off of a $32.48 million loss for 1992, most of which was due to accounting changes. …

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