House Votes to Limit Sole-Source, Cost-Plus Contracts Over objections from the White House and industry, the House overwhelmingly approved legislation designed to limit the use of sole-source and cost-reimbursement contracts. The Accountability in Contracting Act, H.R. 1362, sponsored by California Democrat Henry Waxman, passed 347-73 on March 15. It would require agencies to implement plans to minimize the use of sole-source contracts and “to maximize, to the fullest extent practicable, the use of fixed-price type contracts.” Agencies would be required to publish their justifications and approvals for sole-source contracts over $1 million. In addition, noncompetitive contracts over $1 million that are awarded because of a disaster or other emergency would have to be competed after one year. In House floor debate, Waxman, chairman of the Oversight and Government Reform Committee, said sole-source and cost-reimbursement contracts are “abuse-prone.” He said spending on sole-source and other noncompetitive contracts has more than doubled in the last five years, but Republicans said that happened because of the 9/11 attacks and Hurricane Katrina. Eleven industry associations that make up the Acquisition Reform Working Group said the restrictions are unnecessary and harmful. They said the underlying problem is the shortage of federal acquisition workers. The Bush administration said the bill “would impose burdensome statutory requirements that overlap with more efficient administrative efforts to strengthen the use of competition and reduce fraud, waste and abuse.” The bill would require agencies to report to Congress whenever auditors identify more than $10 million in questioned or unsupported costs. Both the White House and industry opposed that provision as unduly burdensome. On the Senate side, Republican Susan Collins of Maine has introduced broader contracting legislation that would implement some recommendations of the Acquisition Advisory Panel report that was issued in December. (SAA, 1/12)