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U.S. Asked to Put Purchasing Power to Good Use

James Love writes "Today Ralph Nader and I wrote U.S. Office of Management and Budget Director Mitch Daniels to ask the federal government to use its power as a big consumer to address competition issues in the market for PC client software. These are some of the practices we want OMB to examine: OMB is asked to provide information on federal expenditures for Microsoft products, determine if a software "monoculture" makes the federal government more vulnerable to computer viruses or unauthorized access to federal computers, and to consider a number of strategies to use the US government's purchasing power to promote competition and make Microsoft behave; OMB is asked to consider if Microsoft should be required (as a matter of procurement policy) to fully disclose the file formats of its office productivity and multimedia programs, so that the data created in such programs could be reliably read by non-Microsoft software; OMB is asked to consider if it should place a cap of the market share for any one vendor of PC client software, and have the size of the cap depend upon Microsoft's willingness to open up its interface information, or port its MS Office products to additional platforms; OMB is also asked to consider if it would be more efficient to buy code for office productivity products (and release into the public domain), rather than spend billions to lease software."

19 of 491 comments (clear)

  1. Open Source Making Government Inroads by Anonymous Coward · · Score: 4, Informative

    BBC News reports that IBM has signed a major contract to provide GNU/Linux OS computers to Germany's Interior Ministry, which oversees law enforcement ( IBM signs Linux deal with Germany ). A Microsoft spokeswoman was disconcerted by the news, nonsensically stating that, "Any policy that favours one thing over another isn't helpful." Slashdot ( Germany, IBM Sign Major Linux Deal ).

    Kuro5hin has a good story on a new report from Taiwan's official news agency that the goverment is pushing a Software Libre program ( Taiwan to start national plan to push free software ). Not only will the program include software development, but also extensive training and education. Most interesting is that the "national education system will switch to Open Source in order to provide a diverse IT education environment and ensure the people's rights to freedom of information." See also, Slashdot ( Taiwan to Start National Push For Free Software ).

    Might Taiwan's initiative be related to a ZDNet News report on some of the difficulties Microsoft's licensing practices are creating in Taiwan ( Taiwan: MS may have violated trade laws )? This issue was discussed in depth on Kuro5hin ( Backlash against Microsoft intensifies in Taiwan; MS investigated for price gouging ).

    Governments outside the U.S. are increasingly coming to the realization that it makes little sense to send their taxpayer dollars to Redmond, WA, USA as part of a "Microsoft Tax." Use of open source software not only saves the government money, but also helps to develop an indigenous IT industry.

    Will the U.S. government realize the benefits of openness as well? Jamie Love, of the Consumer Project on Technology hopes so. He and Ralph Nader have sent a letter to the Office of Management and Budget encouraging the consideration of various policies that, through software procurement, will address quesions of Microsoft's monopoly as well as other issues ( Procurement policy and competition and security in software markets ). While the letter doesn't specifically recommend the adoption of open source software, it clearly a major aspect to consider.

    Below are some of the practices Nader and Love want OMB to examine:

    • OMB is asked to provide information on federal expenditures for Microsoft products, determine if a software "monoculture" makes the federal government more vulnerable to computer viruses or unauthorized access to federal computers, and to consider a number of strategies to use the US government's purchasing power to promote competition and make Microsoft behave.
    • OMB is asked to consider if Microsoft should be required (as a matter of procurement policy) to fully disclose the file formats of its office productivity and multimedia programs, so that the data created in such programs could be reliably read by non-Microsoft software.
    • OMB is asked to consider if it should place a cap of the market share for any one vender of PC client software, and have the size of the cap depend upon Microsoft's willingness to open up its interface information, or port its MS Office products to additional platforms.
    • OMB is also asked to consider if it would be more efficient to buy code for office productivity products (and release into the public domain), rather than spend billions to lease software.

    Ralph Nader said "The federal government spends billions of dollars on software purchases from one company that is continually raising prices, making its products incompatible with previous versions in order to force upgrades, deliberately creating interoperability problems with would-be competitors, and is well known for engaging in many other anticompetitive practices. Would a business that was spending this much money be such a passive consumer? "

    James Love said "The US Government could easily solve all of its concerns over the Microsoft's anticompetitive conduct by being a smarter consumer. Taxpayers are spending millions to restrain Microsoft's monopoly, and billions to support the Microsoft monopoly. There needs to be a more coherent strategy."

    Copyright (c) 2002 by the Information Society Project. This material may be distributed only subject to the terms and conditions set forth in the Open Publication License, v1.0 or later (the latest version is presently available at http://www.opencontent.org/openpub/). Minor typographical corrections made.

  2. microsoft's greatest fear by nehril · · Score: 5, Insightful

    this kind of thing is what MS fears most: one of the world's largest "customers" jumping into the GPL'd software ring. that would not only give alternatives an enormous confidence boost in the eyes of other businesses, but it would start a massive trickle down effect, as all the companies that the government does business with now need to be "compliant" with something not of Redmond.

    this is why MS seems to be fighting gpl anything in the US Government tooth and nail. with bsd-style lincenses microsoft could just take the code for little or no effort, and continue to ride on their reputation (nobody ever got fired for buying Microsoft), but GPL locks them out nice and tight.

  3. Government mandates re: software. by Matt2000 · · Score: 5, Insightful

    We've been seeing more stories about Governments either being petitioned to change their software buying policies, or mandate certain buying policies for their various departments.

    The problem is that the mandates seem somewhat disconnected by technical reality and what software works best in a situation. My suggestion is that perhaps what should be mandated is a minimum standard of interoperability between systems, and a minimum level of openness about the mechanics through which the software achieves the interoperability.

    So for example, the US gov't could specify that any productivity suite purchased by it's departments must support completely an open standard file format of their choosing or design. If MS Office chooses to support that file format properly, that there is no cap on how many units of MS Office could be purchased. If they choose not to, then it cannot be considered.

    If that policy were applied to many different software application areas then it would quickly matter less where the software came from, and would start to matter more how good the software was.

    --

  4. Role of Government by sheldon · · Score: 5, Insightful

    Some good points are raised here. Documentation on file formats should be a required aspect of any product, simply because one of the challenges faced with computers is evolving your old data to new systems over time.

    I don't agree that the government should be in the role of creating software. Government is not a good entity to choose technologies the free market should adopt. As far as software purchasing costs, you could make a strong argument for companies to provide reduced rates to government entities. But one should also appreciate that the tax dollars outlayed on software is more than made up by the tax revenues coming in as a result of the employment opportunties the software companies generate.

    1. Re:Role of Government by ftobin · · Score: 4, Funny

      I don't agree that the government should be in the role of creating software.

      Yeah, heaven forbid that some research instituation like the NCSA comes up with another revolutionizing piece of software like Mosaic. Don't lump the government as you do; the research arms of the government great at developing new things.

    2. Re:Role of Government by milo_Gwalthny · · Score: 4, Insightful

      Well, it looks like Microsoft paid $2.158 billion in taxes in 2001 (that's *paid*, tax expense was $3.804 billion, but that's a pretty much meaningless accounting entry given the $2 billion in tax benefit that MS got because of the stock options it issued.) That doesn't include the taxes paid by and on behalf of the employees of the company.

      But, offsetting the amount the US government pays against the anmount of tax MS pays assumes that without the US government, MS would be unprofitable. That is probably not true.

      What does make sense it to say that whenever the US government buys something, it gets back 35% of the pre-tax contribution to income of that item. Since MS's costs are not a direct function of their revenue (ie. they are mainly fixed costs), we can assume that the US government gets back about 35% of what it pays in licenses.

      Perhaps you are arguing that MS is too big to fail? That, like Boeing, it needs government patronage to survive? That would be scary indeed.

      --
      Milo
  5. File Formats are the key... by metacosm · · Score: 5, Insightful

    I think the true "key to the kingdom" is in the file formats. People are scared to break away from MS file formats more than anything, they are a powerful force in keeping MS in a dominate position.

    If the formats where standardized (in lets say XML) it would greatly reduce EVERYONES dependacy on MS.

    The government has an even greater reason to fear MS file formats. That reason is REALLY OLD DATA. The government needs to be able to work with extremely old file formats, and if that file format is not standard and has simply been "retired" by a company (MS) they are shit out of luck, and will end up making another company you rich for converting those "Word 2000" docs to "BobbySoft QuickEdit 2035".

    1. Re:File Formats are the key... by GigsVT · · Score: 5, Informative

      http://partners.adobe.com/asn/developer/acrosdk/do cs.html#filefmtspecs

      Why does everyone think PDF is a closed spec?

      --
      I've had enough abrasive sigs. Kittens are cute and fuzzy.
    2. Re:File Formats are the key... by Jason+Earl · · Score: 5, Insightful

      That's not the least bit true. The specification for PDF is public. What's more there is a huge pile of free software that allows you to create and view PDF files. In fact, using Ghostscript it is possible to turn nearly any print job into a PDF file (even on Windows), so there is no need for Adobe's expensive tools (unless, of course, you happen to like them).

      In short PDF is good.

    3. Re:File Formats are the key... by metacosm · · Score: 4, Insightful

      I just dropped XML as an option, and the reason for I used it is ease of development. It is MUCH easier to parse an XML document when compared to most other formats, and this is by design. XML has strict rules on structure and so forth.

      Using XML would reduce the barrier to entry, so that if I want to write a parser that would read a doc file, I could grab an nice XML parsing function (or object) and get the the data I need, then it would be my responsibility to display it as the user expects.

      Currently half the battle is just KNOWING where stuff is stored, how to read it, and do it without screwing up the document, and then you have to know how to RE-save it without screwing up the document. XML would make this ALOT easier.

      Today, Staroffice can read doc files (thru ALOT of work, and it still gets alot of them wrong) and if Sun wanted to, they could make it look totally different than the document you wrote in word [just like your silly xhtml example], so I do not see how your argument even relates to XML... XML would make working with the file format easier, nothing else, yet, that SINGLE thing would massively lower the entry cost for working with MS file formats.

  6. Questionable Contracts at the DoN by goldspider · · Score: 4, Interesting

    As I have mentioned before, I work for the Department of the Navy, and I have seen some deals in progress around here that perhaps is worthy of some scrutiny.

    Recently the DoN signed a contract with a company called EDS to essentially transfer all ownership of the Navy and Marine Corps intranet over to this private-sector company. When this transition occurs, all but a few servers, and all DoN workstations and networking hardware will become EDS property. EDS will be replacing it with their own, and sell the old equipment, surely at a profit.

    Aside from the several million dollars EDS stands to get from the government contract, they stand to make a pretty penny on some absurd service contracts, let alone what they are getting for selling off our old equipment.

    I suspect this is another instance of back-scratching (you know, "You scratch my back, and I'll scratch yours) that makes no business sense at all. Perhaps this warrants some closer attention as well.

    --
    "Ask not what your country can do for you." --John F. Kennedy
  7. Procurement is half the battle. by reaper20 · · Score: 5, Interesting

    I'd like to see this as a win for OSS. As a government contractor constantly looking for ways to bring linux into my workplace, I can tell you that there is still a long way to go before the government rolls out OSS or any non-Microsoft product on a broad level.

    Things like Networthiness Policies, Security, and red tape make it difficult. Especially when you have mutiple agencies under different chains-of-command, so don't think that when "The Federal Government approves use of OSS" comes around that the individual fiefdoms will be mass migrating over to Linux/Apache/whatever.

    Somewhere in the US Government, people are running Apache as their production webserver. My agency only uses IIS, Apache is not on the 'networthiness' list for this location, so no Apache for me. It's great that the NSA has made their own hardened version of Linux, but here, the security guys says only WindowsNT (not even 2000 yet) is the only approved OS secure enough for our network. Now, multiply this across ALL the federal/state/local agencies.

    Even if it was mandated for the government to use OSS, it would take YEARS of retraining people to use this stuff, keeping in mind that alot of the government systems are still running Novell 3.x.

    The way to win government (which is my approach), is to influence your specific area, and push it from the bottom to the top. It's one thing to sit there and say "Noone should use default IIS/2000 installs for a production environment". It's a totally different thing to review the existing policies and change them, document them, sending them through committe, and then deploying. (Believe me, it sucks.)

    On the other hand, things like this help, another government law that has really helped OSS is Section 508 (The accessability laws). At first, I hated them, tons of pages and web apps still need to be rewritten - how does this benefit open source? 508 happens to read almost word for word with the W3C guidelines, which means that alot of government pages and applications now work in Konq/Mozilla. Good Stuff.

  8. Is this really an appropriate request? by rkent · · Score: 4, Insightful

    "Today Ralph Nader and I wrote U.S. Office of Management and Budget Director Mitch Daniels to ask the federal government to use its power as a big consumer to address competition issues in the market for PC client software.

    Um... okay, but is it really the perogative of the OMB to "use its power" that way? According to the OMB's own site, it "evaluates the effectiveness of agency programs, policies, and procedures, assesses competing funding demands among agencies, and sets funding priorities." In other words, it's an executive agency designed to ensure that the US taxpayers get the most bang for their buck, efficiency-wise, not to make political statements about reforming corporate behavior. That said,

    These are some of the practices we want OMB to examine: OMB is asked to provide information on federal expenditures for Microsoft products, determine if a software "monoculture" makes the federal government more vulnerable to computer viruses or unauthorized access to federal computers,

    ... this is still a good idea. Seems like the OMB would be entirely interested in making sure that computers and software bought with fed dollars aren't going to be easily hacked.

    and to consider a number of strategies to use the US government's purchasing power to promote competition and make Microsoft behave;

    But this, no no no. This is still a judicial matter, and any penalty against MS is going to be determined in court. An executive agency would be way overstepping its bounds here.

    OMB is asked to consider if Microsoft should be required (as a matter of procurement policy) to fully disclose the file formats of its office productivity and multimedia programs, so that the data created in such programs could be reliably read by non-Microsoft software

    Yargh! But THIS is another good idea. Again, it's in the financial interest of the country to make sure we're not "locked in" to certain contractors who could then baloon their prices. Not that that ever happens...

    So basically, I think there are some good ideas here with regard to protecting the federal government's investment in software and making sure they're not going down any paths simply because MS wants them to, but trying to wreck the monopoly just isn't in the charter of the OMB. Sorry.

  9. As a Taxpayer.. by RailGunner · · Score: 5, Insightful
    As a taxpayer, I want the hard earned money that the Imperial Federal Government takes from me to not be squandered. I want the Government to be a good steward with MY money, and not waste it as much as they do.

    And I consider the purchase of a buggy, insecure, bloated Operating System like Windows a waste of my money. When some Government clerk is just typing up documents on a PC, why do they need a copy of Windows (and presumably Office) when Linux and KOffice or OpenOffice, etc, will do the exact same thing at a fraction of the cost?

    I'd much prefer if the government used free, open source operating systems as much as possible, saving taxpayer money and eventually getting me another tax cut (because 4 months is too long to work just to pay your taxes).

    Cause it's our damn money, after all.

  10. It's about time by vrmlguy · · Score: 5, Interesting
    With several other governments (Peru, Germany, Mexico, China) deciding that open source software makes better sense than closed, I've been wondering if/when the US would follow suit. I'm under no illusion that this letter will trigger an immediate change of OMB policies; Microsoft has too many lobbyists for that to happen overnight. However, it will serve to get the ball rolling.

    This is also an excellent time for the US-based portion of our community to follow up with our congressional representatives on this issue. Remember, both the House and the Senate place very little stock in email. If you want to get their attention, use either snail-mail or fax, as detailed above. Snail-mail only costs about $1, fax is even cheaper.

    1. Go here and get your ZIP+4 code.
    2. Go here and identify your Congressperson.
    3. When you click on the "Contact My Representative" button, you will be taken to a form. Ignore it. Instead, click on the link for your Representative and go to their homepage. Hopefully, they will have contact information someplace where you can find it. Copy it into your favorite word-processor.
    4. Go here and identify your Senators. Again, we hope that they make it easy to find their contact information.
    5. If you are thinking ahead, save three "empty" letters, addressed to each of the above. This will save time the next time you need to write.
    6. Use your word processor to write an essay explaining your position. Be verbose. Copy this into each of the three letters you prepared above.
    7. If you found any fax numbers (and your computer can print-to-fax!) send copies of your letter that way. Otherwise, print it out and send it by regular mail.
    Here's a suggested outline for the text of your letter (and, no, I'm not going to write it for you, staffers can spot a form letter a mile away):
    1. What problem would new OMB policies solve?
    2. How well would they solve the problem?
    3. What new problems would they add?
    4. What are the economic and social costs?
    5. Given the above, is it worth the cost?
    --
    Nothing for 6-digit uids?
  11. Re:And people complaim about corporate welfare... by reaper20 · · Score: 5, Interesting

    But I don't want the government using my tax dollars to achieve that (except in antitrust and other legal manners).

    Yes, it does suck that the government has to "get involved", but at the same time, I pay ALOT of money in taxes.

    The government should not force, anyone to do anything, but as a stakeholder(taxpayer), I'd be damn pissed if the government is spending ~$800 per server for Win2k, ~$400 per person on Office without even considering the alternatives.

    Example, at my agency someone wanted to spend ~$3000 for FTP Server Software and clients. They were going to do it too, until myself and some others mentioned that free software would be perfect in that role. (Hell, I think W2K comes with an ftp server).

    This is not just the government though, businesses do it too - PHBs assume that expensive software is better, and the more money they spend, the better "product" the will get.

    It's up to us (OSS advocates), to educate our bosses and the people that make decisions that OSS makes sense in alot of places. And don't just say it, PROVE IT, deploy it, and document the performance/costs benefits. At the same time, integrate their existing software that they've already paid for instead of trying to convert everything all at once.

  12. Re:And people complaim about corporate welfare... by oGMo · · Score: 5, Informative
    so, in a nutshell, Nader is saying that the government should make an effort to influence the marketplace in a certain direction, rather than letting natural market forces dictate what heppens

    Uh, the government is already influencing the marketplace in a major influence at that. Nader appears to be asking for the government to influencing it less or at least differently, as to not support a convicted criminal.

    --

    Don't think of it as a flame---it's more like an argument that does 3d6 fire damage

  13. Whatever happened to competitive bidding? by ortholattice · · Score: 5, Interesting
    All governments purchases are normally supposed to be open for competitive bidding. The bid will list a set of features required for an item being purchased, and the low bidder providing a product with those features wins the bid.

    A feature is an objective attribute such as "provides variable-sized fonts". It is not something like "must be identical to MS Office". Just as a bid for cars will specify horsepower, gas mileage, etc. and cannot say "must be identical to a Ford."

    Something like StarOffice or even OpenOffice would satisfy the needs 99% of all government workers. We're talking about basic office documents and memos, nothing exotic.

    Surely there must be actual RFPs somewhere, if only as a formality to satisfy the law, that end up being won by MS. Who bids on these, and why does MS always win? Even if you sold them OpenOffice for $1 a copy, perhaps enhancing it (under GPL) to add some arcane feature or two that currently only MS has in order to satisfy the RFP, you could become quite wealthy. If it meets the requirements of the RFP and has a lower price, the government must accept the bid, in order to minimize the cost to the taxpayers.

  14. There's different kinds of monoculture by Weasel+Boy · · Score: 5, Insightful

    You are defending the monoculture of one company providing a single, one-size-fits-all product for everyone. A product that they change whenever they want to, by the way. A monoculture of supplier.

    What's wrong with a monoculture of well-defined standards instead? You can use any word processor you want, as long as it saves documents in "THIS" well-defined file format. Ditto for spreadsheets, presentations, address books, web browsers, web servers, etc. It's still reliable, compatible, and interoperable -- perhaps more so than that which is proposed by the single supplier who occasionally decides to redefine what they provide. Call it a monoculture of data, if you will.