Senator Reed Takes Aim at Lutnick’s Role in $100K+ Commerce Contract Scrutiny

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00:00And it's been reported in the press that you are insisting on personally reviewing every commerce contract over $100,000?

00:08That is true.

00:10Well, that seems to be something that is not particularly efficient.

00:16And that results in the 5,700 contracts just in NOAA.

00:20So, again, if you can't find reliable support to do those reviews, I think you're wasting your time, frankly.

00:29So I am tasked with the responsibility of my department.

00:33And contracts over $100,000 should be reviewed by the secretary.

00:38Now, I may have more energy and more time.

00:41And if you drive by the Department of Commerce late at night, you're going to see our lights on because I'm going through it.

00:47I do it with my team.

00:50I do it with the people who run the bureaus.

00:52And I teach them how to analyze contracts, not to push forward what was done before.

00:58And I'll give you one quick example.

00:59They come to me with planes, hurricane hunters.

01:03And they said they were $672 million.

01:05I said, wow, how many planes do we get?

01:08We get two.

01:09Two planes?

01:11Wow.

01:11Can I see the plane, please?

01:13Just show me a picture of the plane we're going to.

01:15And they show me this picture of a plane.

01:18You remember old planes?

01:19They had like mullions in the windscreen.

01:21And they show me that.

01:23Three propellers on each side.

01:24And I said, my God, when was this plane new?

01:26They said, no, no, no.

01:27You're buying a new plane.

01:28I said, no, when was the first one?

01:301955.

01:30Excuse me, Mr. Secretary.

01:32Excuse me, Mr. Secretary.

01:32These things have to stop.

01:33You're talking about a $600 million acquisition.

01:38That's a lot more than a $100,000 contract to do something like cleaning in the buildings

01:44that you occupy.

01:45Oh, we end up, we cancel huge numbers of absurd contracts for software nobody uses.

01:52I said, how many people use the software?

01:54Zero.

01:55These are waste.

01:56These are fraud.

01:57Or these are abuse.

01:58And it's my job to teach myself.

01:59How many CEOs of companies, major companies in the United States, are reviewing contracts

02:05at the $100,000 level?

02:07And if they would, what would the board of directors say to them?

02:11The first year you're there, if you don't do it, you should be fired.

02:14You should know everything that's going through.

02:16You should do it with your staff.

02:17You should teach your staff how to do it.

02:19And then you should delegate them to do it once you've taught them.

02:22You don't do it.

02:23You're abdicating your responsibility.

02:25That's how I view it.

02:27That's how I ran my business privately.

02:29And that's how I'm going to run the government.

02:31I'm responsible for it.

02:32Well, let's go ahead.

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