Contract Discipline

Amtrak is in the hole to the tune of $140 million in maintenance costs for its current fleet of trains because the contractor Amtrak hired to build and deliver uprated replacement trains is having trouble with testing requirements and production defects and so is nearly three years late on delivery.

Amtrak is also losing even more revenue in anticipated ticket sales from the new, larger trains that were supposed to enter service in 2021. And the railroad is missing out on other revenue because some older Acela units have been pulled from service to be cannibalized for spare parts.

One way for our government to deal with such things is with fixed price contracts, under which the contractor gets a sum of money and must satisfy the production requirements of the contract within that sum. These contracts, though, don’t make the contractee whole from the contractor’s failure.

Here’s another way: write into the contract that the contractor is responsible for the contractee’s maintenance and other costs attributable to the contractor’s failure to meet deadlines. Such a move would make future contractors, e.g., France-based Alstom in the Amtrak case, responsible for Amtrak’s $140 million, and more, inflicted on it by Alstom’s failure to perform. If no contractor is willing to incur that risk, that contractor need have no business from the government at all.

Here’s a Thought

(No comments from the peanut gallery.)

Time is rapidly decreasing to get a budget passed in time to prevent a Federal government partial shutdown. There are those who fear that, and many of those distort the situation by claiming that it would be a total shutdown and one that would push all grandmas and grandpas off the Social Security cliff and deny wages for our soldiers. The hysteria is strong in those, but let’s take it seriously for a moment.

Here’s a solution. Assume Congressman Andrew Clyde (R, GA) is correct in his prediction that the House will finish passing all 12 of its appropriation bills by the supposed deadline of 17 November. To the extent the shutdown hysteria needs to be taken seriously, there will need to be an extension/additional Continuing Resolution in order to give the Senate time to deal with the appropriations bills, the House-Senate Conference that will be necessary to resolve any differences, and that CR. I’m eliding here the idea that Senators themselves need no funding in order to do their jobs and work these bills. They can work for free for the time being.

If the Senators, led by Progressive-Democrat Majority Leader Chuck Schumer (NY) and Republican Minority Leader Mitch McConnell (KY), but really only 60 of the 100 are needed, are serious, they’ll need under Senate rules only about a week to consider and pass or vote down an appropriation bill. Since Senators all are very proud of their ability to “walk and chew gum,” as they love so quaintly to put it, they can consider all of the appropriations simultaneously and in parallel with their handling of the CR. This is especially true given the size of each Senator’s staff and the size of the Senate-as-a-whole’s staff.

It should take only a day for the Conference Committee to resolve any differences, and an additional day for the respective houses to pass or reject the Committee’s recommendations.

Thus: pass a CR containing spending at the latest pre-Wuhan Virus Situation level, good for nine days. That’s sufficient time for the Senate to act on the CR and the appropriations bills.

And pass no further CRs. Full stop. If the Senate as a whole chooses to reject any of the House bills, or the CR, the Senate—Republicans as well as Progressive-Democrats, depending on how the Republicans vote—will have demonstrated that they’re more interested in their political games than they are in the weal of their constituents and of our nation at large. They should be left, with apologies to Hosea, to reap the whirlwind: it hath no budget; the funds shall yield no meal.

Poison Pill

The Republican-led House of Representatives is set to vote on a stand-alone aid bill for Israel Thursday or Friday (as I write on the preceding Wednesday), a bill whose spending is paid for by reallocating monies from elsewhere—here by reclaiming money allocated for an IRS expansion from the Progressive-Democratic Party-passed Inflation Reduction Act.

Senate Majority Leader Chuck Schumer (D, NY) is crying foul over that. That pay-for provision constitutes

poison pills that increase the deficit and help wealthy tax cheats avoid paying their fair share.

Imagine that. The Progressive-Democratic Party—because Schumer, a senior leader of Party, is typical of Party members—thinks actually covering expenses rather than just spending away without regard for where the money will come from is a poison pill.

This is what the Progressive-Democratic Party and its Congressional and Presidential members and candidates stand for.

Federalism and State Taxes

A Wall Street Journal editorial opens with this:

One great benefit of America’s federalist Constitution is policy competition among the states. Voters in Florida don’t have to live under New York’s laws, and Americans and businesses can vote with their feet by moving across state lines.

The editors proceeded to a description of State-level tax laws and the mobility of us Americans and our businesses in leaving States with high taxes in favor of States with, often markedly, lower taxes. But that lede overstates the case.

Federalism applies, often, with State taxes, but State-level business regulations are a different matter. It’s only necessary to see the outsize impact on our auto industry, for instance, or our pork industry, that California’s regulations have on vehicle requirements and on how hogs must be raised to see the lack of federalism in our regulatory environment.

With specific regard to California’s fuel requirements, there’s this from the Federal government’s EPA:

The Clean Air Act allows California to seek a waiver of the preemption which prohibits states from enacting emission standards for new motor vehicles.

The Federal government has long granted that waiver, and during the Biden administration, the feds made their latest move—overtly to refuse to rescind the waiver, effectively nationalizing a State regulation at the expense of federalism.

On the California’s hog-raising regulation, the Supreme Court upheld that regulation, which mandated the minimum space in which hogs must be raised, anywhere in the United States, in order for them to be marketable in California. The Court nationalized this State-level regulation—again at the expense of federalism.

If we’re going to preserve our federalist structure of governance, federalism must be restored to State regulations, as well as State-level taxes. Don’t look for any of that to happen under any Progressive-Democratic Party-dominated Federal government, though.

Bidenomics is so Successful….

Here are a couple of measures of Progressive-Democrat President Joe Biden’s economics ideology and his policies that flow from it. The Agriculture Department says that

From 2021 to 2022, there were statistically significant increases in food insecurity and very low food security for nearly all subgroups of households described in this report[.]

Statistically significant. In concrete numbers, that saccharinely put “increase” was from 33.8 million Americans were living in food-insecure households in 2021 to 44.2 million in 2022 (2023 numbers aren’t available yet). That’s a 30% increase in the number of American families at nutritional risk.

Here’s another measure. The Census Bureau says that

poverty made the fastest rise in a half century under Biden, with 15.3 million more Americans falling below the poverty level.

The Know Betters in the White House, though, insist that everything is just coming up Aces because of the Biden ideology and policy set.

Us ordinary Americans just should not believe our lying eyes or our rudely growling stomachs.