February 9 2007 Copyright 2007 Business Research Services Inc. 301-229-5561 All rights reserved.

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Washington Insider

The House approved a $463.5 billion stopgap spending bill to fund most government agencies in fiscal 2007. The bill was pending in the Senate.

Congress passed only two appropriations bills last year, for the Defense and Homeland Security departments. The Joint Funding Resolution sets spending limits for the rest of the government.

The House Appropriations Committee said most programs are funded at 2006 levels, with increases to cover the cost of pay raises. A few agencies would get more money to cover specific urgent needs — including the Defense Department and VA health programs, the FBI and the Social Security Administration.

Appropriations Committee Chairman David Obey, a Wisconsin Democrat, told his colleagues: “We’re in a situation where we have to move on. We may have made some wrong decisions, but at least we made them.”

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President Bush’s $2.9 trillion budget proposal for fiscal 2008 would impose a near-freeze on domestic programs as war costs and homeland security spending continue to rise.

The budget Bush sent to Congress Feb. 5  calls for $929.8 billion in discretionary spending, up $57 billion or 6.5%.  All but $3.6 billion of the increase would go to security-related spending, Congressional Quarterly reported. That total does not include the cost of the wars in Iraq and Afghanistan.

The Office of Management and Budget said non-security spending would increase by only 1%.

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The Contract Services Association is urging an overhaul of contingency contracting procedures for coping with a natural disaster or terrorist attack.

In a white paper, the industry group said “the government often operates inefficiently or, in the worst case, ineffectively” in responding to such events.

It said emergency rules should apply for 60 to 120 days after a disaster, allowing agencies to bypass competition and socioeconomic goals, while maintaining opportunities for all small businesses. “After that initial period all regular contracting rules and socioeconomic preferences should kick back in,” the report says.

CSA also said the government needs to take steps to insure that contractors can receive timely payment for their disaster response work.

The paper is available at http://csa-dc.org.

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The Contract Services Association has new leadership. Barry Cullen was elected president of the contractor group, replacing Chris Jahn. CSA said Cullen brings 25 years’ experience in management of natural resources and environmental trade associations.

Colleen Preston, a former deputy undersecretary of defense for acquisition reform, replaces Cathy Garman as senior vice president for policy.


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