March 21 2008 Copyright 2008 Business Research Services Inc. 301-229-5561 All rights reserved.

Features:
Defense Contract Awards
Procurement Watch
Links to Prior Issues
Teaming Opportunities
Recently Certified 8(a)s
Recent 8(a) Contract Awards
Washington Insider
Calendar of Events
Return to Front Page

Bill: No Pay Disclosure for Small Firms

Small contractors would not be required to disclose the salaries of their top executives under legislation approved by the House Oversight and Government Reform Committee March 13.

The sponsor of H.R. 3928, Rep. Christopher Murphy, D-CT, agreed to amend the bill so salary disclosure would be required only from companies receiving at least $25 million annually in federal contracts and deriving at least 80% of their income from federal work. The bill originally applied to companies with $5 million in contracts.

Murphy said the bill would require privately held contractors to reveal pay information that is already available for publicly traded firms.

The committee’s ranking Republican, Rep. Tom Davis, VA, said the bill’s “purpose is to go after Blackwater,” the security firm whose CEO refused to reveal his salary to the committee. “It has no acquisition purpose that I can see,” Davis added.

He warned that some privately held firms might stop doing business with the government rather than reveal salary data.

The committee approved the bill by a voice vote. No House debate has been scheduled.

The committee also backed legislation to create a public database of all completed criminal, civil and administrative proceedings against federal contractors in the last five years. The bill was amended so the database would contain only cases that had been adjudicated or settled, not pending lawsuits or other proceedings.

Chairman Henry Waxman, D-CA, called H.R. 3033 “a common-sense initiative” that would make such information easily available to contracting officers.

The bill calls for mandatory debarment proceedings against any contractor that was the subject of two adverse rulings in a three-year period. Davis said the “two strikes, you’re out” provision could require proceedings against some of the largest contractors, who often engage in disputes with the government over price and performance.

Davis said he will oppose the bill if it comes to the House floor.

The committee approved H.R. 4881, which would allow suspension or debarment of a contractor that owes overdue taxes. Paul Denett, administrator of Federal Procurement Policy, said a final rule will be issued shortly to achieve the same purpose. (SAA, 3/7)


*For more information about Set-Aside Alert, the leading newsletter
about Federal contracting for small, minority and woman-owned businesses,
contact the publisher Business Research Services in Washington DC at 800-845-8420