mr. hutton? >> the use of award fees is a unilateral situation with the government where the government tries to incentivize certain areas. the contractor may come back and say, i have more information that may make you think differently about the valuation. but it is a government decision. >> would there be something that would be too radical by saying that we're not 22 anymore award fees contracting? >> my instinct is that there are situations where they do apply and they do apply when implementing correctly to protect the government's interests. >> will you give me an example? >> something that doesn't relieve research focus -- it would be 100%. if you focus it this way, you might pay 85% and put a piece at risk so that the current producer that if the contractor underperforms, -- so that, if the contractor at underperforms, then use 85 percent, not one hon%. -- not 100%. i think you want to minimize the use of these and apply them only two situations where you cannot assign the objectives up

mr. hutton?>> the use of award fees is a unilateral situation with the government where the government tries to incentivize certain areas. the contractor may come back and say, i have more information that may make you think differently about the valuation. but it is a government decision. >> would there be something that would be too radical by saying that we're not 22 anymore award fees contracting? >> my instinct is that there are situations where they do apply and they do apply when implementing correctly to protect the government's interests. >> will you give me an example? >> something that doesn't relieve research focus -- it would be 100%. if you focus it this way, you might pay 85% and put a piece at risk so that the current producer that if the contractor underperforms, -- so that, if the contractor at underperforms, then use 85 percent, not one hon%. -- not 100%. i think you want to minimize the use of these and apply them only two situations where you cannot assign the objectives up f

mr. john hutton. he began his career in gao in 1878? [laughter] is that a typo here?has worked in projects in iraq and afghanistan. again, our thanks to both of you for your work and your expertise, and i will ask that you began curia of your entire statement will be a part of the record. >> thank you for the opportunity to discuss award fee contacting and strategies to eliminate waste and extract maximum value from these contracts. i would like to insert my statement into the record. >> to have our permission. >> thank you. i was confirmed last month as the deputy director for management at omb. it is my responsibility to help lead efforts in performance, making sure that taxpayer dollars are being used effectively and efficiently. this is especially critical during these difficult economic times. i believe this can play an important role in driving down costs. as demonstrated by the president's march 4 memorandum on government contracts thing, the administration is committed to creating such a system, which is currently accounting for more than $5 billion in annual

mr. ueberroth, famous from the olympics and selling my old firm, e.f. hutton, and we're glad he did.he gamut. actually, you could describe both the type of hotels that preferred is involved with and the geographic -- you're all over the entire world, not all  luxury. how many hotels and what is the breakdown? >> we have approximately 700 hotels as of today. spread out throughout the world we probably -- we would have more in north america. they run the gamut from the very deluxe, which we call preferred hotels and resorts and our preferred boutique which is smaller, under 100 rooms, but very luxurious hotels. we have a brand called summit, which is 4, 4 1/2 star and sterling, the 4-star brand. we have what's called historic hotels of america, which is -- they have to have history but they can be from the waldorf astoria to a little hotel in tennessee. >> wow. so you go from five stars at the top and -- do you have three stars? >> well, our sterling brand would be high three, four. stars are hard to -- we have trouble totally defining but we would not have any roadside inn. i woul