AMD Applauds OMB Efforts to Limit Brand Name Specifications and Maximize Competition in Federal Procurement.SUNNYVALE, Calif. -- Advanced Micro Devices (NYSE NYSE See: New York Stock Exchange : AMD (Advanced Micro Devices, Inc., Sunnyvale, CA, www.amd.com) A major manufacturer of semiconductor devices including x86-compatible CPUs, embedded processors, flash memories, programmable logic devices and networking chips. ): --Rule Change will Increase Transparency and Save Taxpayers Money --Brand Name Justification Requirements Expanded to Include Simplified Acquisitions and Sole Source Procurements Advanced Micro Devices (NYSE: AMD) commended an Office of Management and Budget The Office of Management and Budget (OMB), formerly the Bureau of the Budget, is an agency of the federal government that evaluates, formulates, and coordinates management procedures and program objectives within and among departments and agencies of the Executive Branch. (OMB OMB abbr. Office of Management and Budget Noun 1. OMB - the executive agency that advises the President on the federal budget Office of Management and Budget ) memorandum announcing new federal procurement The fancy word for "purchasing." The procurement department within an organization manages all the major purchases. regulations designed to discourage the use of brand name specifications in government contracts that would benefit a particular brand or manufacturer. The change to the Federal Acquisition Regulation (FAR) increases the level of transparency in the procurement process by requiring federal procurement officers to publish justification for brand name specifications in all solicitations that exceed $25,000, as well as post them in public view on government Web sites. "OMB is once again demonstrating its commitment to foster choice and open competition in government procurement Government procurement, also called public tendering, is the procurement of goods and services on behalf of a public authority, such as a government agency. With 10 to 15% of GDP in developed countries, and up to 20% in developing countries, government procurement accounts ," said Sue Snyder, AMD vice president of international policy and relations and executive legal counsel. "Competition promotes consumer choice, lowers prices and encourages innovation. This change will help government agencies choose from the best products at the fairest prices for American taxpayers." Snyder continued, "The decision to include simplified acquisitions and sole source procurements, two commonly used practices, really raises the bar for standards of accountability to the American public." This memo follows OMB guidance issued last year in response to an increase in the use of brand name specifications in government procurement solicitations, including those describing office products and microprocessors for computers that benefited certain companies. Professor R. Preston McAfee R. Preston McAfee (born July 7, 1956) is the J. Stanley Johnson Professor of Business, Economics, and Management at the California Institute of Technology, where he is the executive officer for the social sciences. , of the California Institute of Technology California Institute of Technology, at Pasadena, Calif.; originally for men, became coeducational in 1970; founded 1891 as Throop Polytechnic Institute; called Throop College of Technology, 1913–20. , recently released an AMD-commissioned study which showed brand-name specifications in government procurement contracts for computer hardware have cost American taxpayers up to $563 million. The study also found that approximately 69 percent of the applicable solicitations for computer systems and technology in 2004 contained language that either required specific name brand microprocessors or specified that the processor should be equivalent to a particular brand microprocessor. AMD's Position on Fair and Open Competition AMD stands for fair and open competition and the value and variety competition delivers to consumers. Businesses and consumers should have the freedom to choose from a range of competitive products that come from continuous innovation on a level playing field See net neutrality. where everybody plays by the same set of rules. When market forces work, consumers have choice and everyone wins. About AMD AMD (NYSE:AMD) designs and produces innovative microprocessors, Flash memory devices and low-power processor solutions for the computer, Communications and consumer electronics industries. AMD is dedicated to delivering standards-based, customer-focused solutions for technology users, ranging from enterprises to government agencies and individual consumers. For more information visit www.amd.com. AMD, the AMD Arrow logo and combinations thereof, are trademarks of Advanced Micro Devices, Inc. Other names are for informational purposes only and may be trademarks of their respective owners. |
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