Industry Seeks Repeal of A-76 Restriction Several contractor groups urged Congress to repeal a law that prohibits the Defense Department from awarding outsourcing contracts to companies unless their employee health plans are equal to those available to federal employees. In a March 2 letter to the House Appropriations subcommittee on Defense, the Fair Competition Coalition said the law tilts the playing field in favor government employees in public-private job competitions and especially hurts small firms that cannot afford comprehensive health plans. “This government-mandated health care provision will stifle small business participation in the department’s competitive sourcing program,” the coalition said. The letter noted that federal employees are already winning up to 90% of job competitions under OMB Circular A-77. Chris Jahn, president of the Contract Services Association, said, “Contrary to the assertion of some about seeking to ‘level the playing field’ for public-private A-76 competitions, this provision actually creates a significant imbalance in favor of in-house teams. Remember that this is work that the Federal government has identified as commercial in nature.” The health care provision was inserted in the defense bill with the backing of federal employee unions, and they can be expected to oppose repeal. Other members of the coalition include the Professional Services Council and the Aerospace Industries Association.