- Rule Change will Increase Transparency and Save Taxpayers Money -
- Brand Name Justification Requirements Expanded to Include Simplified Acquisitions and Sole Source Procurements -
SUNNYVALE, Calif. - April 24, 2006 - Advanced Micro Devices (NYSE: AMD) commended an Office of Management and Budget (OMB) memorandum announcing new federal procurement 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," 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, of the California Institute of Technology, 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 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 http://www.amd.com.
