Minimize

Welcome!

Further thoughts on Amazon, “It’s beginning to get suspicious”

Big Al
November 18, 2017

The technology giant is no stranger to sweetheart deals that line its pockets at taxpayer expense. The U.S. Postal Service, for instance — which has lost $60 billion since 2007 — handles last-mile shipping for two-thirds of Amazon’s deliveries. This means overtime for workers and a good incoming revenue number on the USPS’s balance sheet, but it’s a financial bonanza for Amazon.

According to media reports, USPS delivers Amazon packages for $2 per package — even though it costs USPS $3.46 per package to make these deliveries. And that’s before you get into the $200 million three years ago for 270,000 handheld scanners to process the packages or the $5 billion or more to replace USPS vehicles with ones better suited to carry Amazon’s packages.

But even this cozy arrangement pales in comparison to the deal Amazon is now trying to push through Congress.

Buried deep in this year’s defense spending bill is a provision that would move Defense Department purchases of commercial off-the-shelf products to online marketplaces.

summary of the proposal, which was inserted into the legislation by House Armed Services Committee Chairman Mac Thornberry, argues it is needed to save money over the burdensome and expensive current system.

It pointed to a report from the Inspector General of the Government Services Administration that found some IT equipment could be purchased more cheaply on the open market than through the GSA’s “schedules.”

In response, the plan calls for developing an online marketplace platform through which federal agencies can buy products such as paper clips, bottled water, computers, office furniture and more — just as any business would do.

But it also calls for this platform to be designed to “enable government-wide use of such marketplaces.” This means the government is looking only for a procurement and supply management firm big enough to offer multiple suppliers for the same product with constantly changing selection and prices and serve the entire U.S. government.

That leaves just one likely possibility  – Amazon Business – for basically monopoly control of $53 billion in federal purchasing, much of the supplies for which comes from no-bid contracts.

Amazon provides a platform for e-companies to sell through to their own customers. It receives 15 percent to 20 percent of the proceeds from such sales, which means a huge revenue stream for Amazon for doing basically nothing while vendors are forced to cough up as much as half their margin.

A government deal with Amazon sets up opportunities for abuse, not to mention control over suppliers. Amazon would get to collect an enormous amount of data on agencies, which could be used to identify top competitors and drive them out of the federal marketplace with increased fees or other rules changes.

And it means any discounts that can be negotiated for the bulk rates of purchasing the federal government does would flow not to the government and taxpayers — but instead into Amazon’s pocket.

Amazon Business, which only started in 2015, already has 1 million customers and $1 billion in sales, and its revenues grew 34 percent in the last year. Adding federal procurement would effectively drive out all competitors for its business service.

It already is moving into position to do this at the local level. In January, Amazon signed a contract with U.S. Communities, a coalition of 90,000 local governments, to provide them with an online marketplace for office supplies and other goods.

The fate of the proposal is unknown. It is in the House version of the defense spending bill but not that of the Senate. This will be resolved in a conference committee, and one solution is to try it as a pilot project before committing the entire government to it.

There certainly ought to be a breathing period before yet another government agency signs yet another deal to use tax dollars to further enrich one of the richest men on the planet.

It’s beginning to get suspicious.

Comment from Big Al: “I prefer at this point in time to look at Amazon as not evil, but simply as a new paradigm for business efficiency and growth. What do you think?” 

Discussion
15 Comments
    Nov 18, 2017 18:11 PM

    New paradigm…………..tax payers are getting the new pair of dimes to rub together, because that is about all they are going to have left…….

    Nov 18, 2017 18:12 PM

    In the old days they had coal trusts, meat trusts, banking trusts, railroad trusts, media barons, and now Amazon comes along and they are influencing everything that we do. They are involved in the media, the food industry, spy agencies, transportation, the government, the space program, banking, get a job with Amazon anywhere in any of these walks of life and if you aren’t compatible with their company you won’t find a job anywhere. If you want to be self employed you will face the same prospect. Amazon has given Big Brother a whole new meaning it will not only control the way you think but it will also control the way you earn your livelihood. Teddy Roosevelt was able to take on the various trusts because they were all run by separate entities, but Amazon is a Big Player in a Big Ocean and not even the government can dictate how much power Amazon can have over the people.

      Nov 18, 2017 18:32 PM

      That is a possibility Mr. Tracy!

    Nov 19, 2017 19:59 AM

    Al:

    It’s called a free market. What Amazon is doing is perfectly legal.

    If people don’t like the laws, they should work to change them.

      Nov 19, 2017 19:56 AM

      Well, of course. I personally am on the side when it really comes down to it of free enterprise. Bezos is nothing more than a genius!

      Nov 20, 2017 20:32 AM

      Legal but not lawful.

    Nov 19, 2017 19:30 AM

    Report of Marines Invading CIA Headquarters

    There are reports now circulating that a special forces group of 2200 marines have landed and invaded the CIA Headquarters.

    https://www.armstrongeconomics.com/world-news/corruption/report-of-marines-invading-cia-headquarters/

      Nov 19, 2017 19:14 PM

      Interesting……………

        Nov 19, 2017 19:16 PM

        I guess the exemption granted to the CIA under Truman in 1948 , did not include the military…. 🙂

        Nov 19, 2017 19:26 PM

        Others are saying it happened Saturday…

        Reports: US Marine Expeditionary Unit (MEU) Lands at Langley! 2200 Marines!
        Reports are beginning to surface that a Marine Expeditionary Unit (MEU) landed at Langley on Saturday.

        A Marine expeditionary unit (MEU, pronounced “Mew”), is the smallest Marine air-ground task force (MAGTF) in the United States Fleet Marine Force. Each MEU is an expeditionary quick reaction force, deployed and ready for immediate response to any crisis, whether it be natural disaster or combat missions.

        Armstrong update

        So far, there is no confirmation of Marines landing at Langley and storming the CIA to prevent some sort of coup. That conspiracy seems to be way over the top. MEU is the Presidents 911 force. Marines are the “President’s Own.” A MEU would be accurate if used by Trump. However, I have not seen any credible reports whatsoever. Clients even in the area report all is quiet. Yes, it this was true, there would be a media blackout. Nonetheless, if a MEU unit did land even on a Sunday, they would have made a lot of noise. That is what they do to create panic in the opposing force.

        https://www.armstrongeconomics.com/international-news/politics/conspiracy-theory-of-marines-invading-cia/

          Nov 19, 2017 19:32 PM

          Interesting again…………..Bogus Report…….. or just a warm up………

    Nov 19, 2017 19:00 PM

    Zimbabwe’s Robert Mugabe addresses nation, does not announce resignation

    Zimbabwe President Robert Mugabe addressed the nation on Sunday, but did not formally announce his resignation hours after the ruling party fired him and threatened to impeach him.

    During his speech, Mugabe said Zimbabweans “cannot be guided by bitterness” and concluded with, “I thank you and good night.” The ruling party’s Central Committee announced early Sunday they fired the leader after nearly four decades in power. An official close to the talks told The Associated Press the 93-year-old leader will be resigning, but Mugabe baffled the country when he didn’t formally announce his resignation.

    “The congress is due in a few weeks from now. I will preside over its processes, which must not be possessed by any acts calculated to undermine it or compromise the outcomes in the eyes of the public,” Mugabe said.

    The ruling party’s Central Committee urged Mugabe to resign by noon Monday and threatened to begin impeachment proceedings if he didn’t step down. Parliament is expected to resume on Tuesday.

    http://www.foxnews.com/world/2017/11/19/zimbabwes-robert-mugabe-addresses-nation-does-not-announce-resignation.html

    GH
    Nov 19, 2017 19:19 PM

    Amazon provides an amazing service. But I intend to give them little business henceforth. Bezos also owns the Washington Post, which has long been a CIA propaganda outlet. Amazon now has a $600 contract with the CIA. I prefer not to support them.