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Washington Insider

The Defense Department has published a final rule governing contractors that deploy with or otherwise provide support to U.S. military forces deployed outside the United States. The rule covers contractors involved in contingency operations, humanitarian or peacekeeping operations, or military operations or exercises designated by the combatant commander.

DOD said it changed its proposed rule to apply to contractors who “provide support in the theater of operations’’ as well as those contractor personnel that ``accompany’’ or ``deploy’’ with the U.S. forces. The rule does not apply to contractor personnel providing support from outside the theater of operations or to nation-building efforts such as the reconstruction of Iraq.

The final rule is FR Doc 05-9007 in the May 5 Federal Register. It will be effective June 6.

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House Small Business Committee Chairman Don Manzullo (R-IL) says the Internal Revenue Service should expand its education and public outreach to help small business owners pay their fair share of income taxes.

IRS has said small business owners and self-employed people are responsible for a large portion of the estimated $300 billion “tax gap” — the difference between the amount of tax dollars owed to the government and the amount actually paid. IRS Commissioner Mark Everson has announced a program to increase enforcement activities, including more audits.

Manzullo said imposing increased burdens on small businesses through more audits cannot be the only answer. “Many times, small business owners are attempting to the best of their ability to comply with the complex tax code,” he said. “It is not that they don’t want to comply; rather, the system and paperwork are so complex that it’s difficult for them to comply.”

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The National Women’s Business Council has published Issue in Brief, “ Legislative Priorities Among Key Women’s and Small Business Organizations,” that highlights the top issues of importance to women’s business organizations. Key among them are health care; economic equity and tax reform; government procurement; social security reform; technology and telecommunications; legal and regulatory reform; retirement and pensions; global markets; and access to capital.

Ten national women’s organizations were surveyed. The complete Issue in Brief is available at www.nwbc.gov/ResearchPublications/issuesBrief.html.

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Federal spending on information technology will grow to $92 billion by fiscal 2010, from $71 billion this year, according to a forecast by the market research firm Input.

“Homeland security initiatives will continue to be the primary driver behind significant growth for another one to two years,” said Payton Smith, director of public sector market analysis at Input. “We will then see IT spending return to levels of normalcy as two things happen: homeland security becomes ingrained in each responsible federal agency’s mission and the Office of Management and Budget exercises more control over IT expenditures. Although homeland security will remain a budgetary consideration, we will not see the frantic spending on these initiatives that we have seen over the past three years.”

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Joseph G. Diamond, the director of the Air Force Office of Small and Disadvantaged Business Utilization, was presented the Presidential Rank Award (Meritorious Executive Rank), one of the top honors for senior civil servants.

Diamond was cited for acquisition innovation, unparalleled management capabilities, extraordinary business acumen and dynamic leadership. The Air Force credited him with completely revitalizing its Small Business Program, with accomplishments such as including unprecedented prime contract awards in every special category and a Comprehensive Strategic Plan that the Office of the Secretary of Defense called “outstanding.”

The Meritorious Executive Rank is limited to only 5% of the Senior Executive Service governmentwide. The selection process includes evaluation by boards of private citizens and approval by the president.

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SBA Deputy Administrator Melanie Sabelhaus has announced her resignation effective June 15, after more than three years as the agency’s number-two official.

She said she plans to return to private business. She was a real estate entrepreneur before joining the government.


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