“High Road” a Threat to Small Contractors? The Obama administration is reportedly considering a new procurement policy that would favor contractors offering higher pay and benefits. The plan, known as High Road, has been pushed by labor unions. It would require contracting officers to consider employee pay and benefits when evaluating bidders. “I would anticipate this would have a chilling effect on small businesses trying to compete for government business,” said Sen. Robert Bennett, R-UT. He and four other Republican senators have written to the Office of Management and Budget protesting the plan. If small businesses are shut out, they said, “large contractors will be free to charge significantly more for projects.” At a Feb. 25 hearing of the Senate contracting oversight subcommittee, Steven Schooner, co-director of George Washington University’s Government Procurement Law Program, said the administration appears to be “focused on using the public procurement process to benefit union members and special interests.” He added that government contracts should not be used to promote “redistribution of wealth.” Presidential adviser John Podesta, president of the liberal-leaning Center for American Progress, said last year that many federal contractors in low-level jobs such as security guards and janitors are paid so poorly that they qualify for food stamps and Medicaid. The Daily Caller website said it obtained a draft of the High Road policy that acknowledges it would increase the government’s costs, but contends the higher cost of contracts would be offset by savings in social programs. A spokesperson for Vice President Biden’s office said the document is outdated and does not reflect the administration’s priorities. According to outlines of the High Road policy published by the Daily Caller and the New York Times, a new office at the Labor Department would collect data on contractors’ pay and benefits and rate each company. Contracting officers would use those ratings to give preference to bidders offering better wages and benefits. Companies that repeatedly violated labor and environmental laws would be barred from receiving contracts. The administration has not put forward a specific proposal or even acknowledged that it is considering High Road. Nor is it clear whether President Obama could impose the new policy by executive order, or whether he would need congressional approval. Some say legislation would be needed because the policy would conflict with current laws such as the Davis-Bacon Act and the Service Contract Act, which require contractors to pay local prevailing wages for construction and service work.