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Senate Defense Bill Includes Contracting Changes

The Senate may consider its version of the Defense Authorization Act at any time. It includes a number of provisions related to contractors.

The House has already passed an authorization bill that contains wide-ranging changes in procurement rules. (SAA, 5/30)

Here are highlights of the Senate bill, as analyzed by the Professional Services Council.

Contingency Contracting Corps. Section 812 would require the Secretary of Defense to establish a Contingency Contracting Corps made up of volunteers from the defense acquisition workforce, both military and civilian, that has the capability, to support contingency contracting actions for troops deployed both within and outside the continental United States.

Expedited hiring authority for the defense acquisition workforce. Section 851 would give the Department of Defense authority to designate categories of acquisition positions within DOD as shortage category positions, and allow the use of expedited hiring authorities for those jobs.

Procurement by state and local governments of equipment for homeland security and emergency response activities through the Department Of Defense. Section 1031 would expand the categories of equipment that may be purchased through DOD by state and local governments to include consequence management equipment for homeland security and emergency response activities.

`Exclusion of certain factors in consideration of cost advantages of offers for certain Department of Defense contracts.Section 823 would require a revision of acquisition regulations to ensure that, in any competition for a contract in excess of $10 million, an offeror does not receive an advantage for a proposal that would reduce costs for the Department of Defense as a result of the offeror having incorporated in another country to avoid paying Social Security and Medicare taxes on U.S. employee wages.

Database for Department of Defense contracting officers and suspension and debarment officials. Section 831 would require the establishment and maintenance of a DOD database for use by contracting officers, on the integrity and performance of federal contractors. For every contractor or grantee awarded a federal contract or grant in excess of $500,000, the database would include a brief description of any criminal, civil or administrative proceeding in connection with the award or performance of a contract with the federal government or, to the maximum extent practicable, a state government, if the proceeding resulted, in the last five years, in a criminal conviction or a civil fine of $5,000 or more; any suspension or debarment; and each finding by a federal official that the contractor is not a responsible source. The House has passed a similar provision.

Ethics safeguards for employees under certain contracts for the performance of acquisition functions closely associated with inherently governmental functions. Section 832 would set up rules governing contractor employees’ financial conflicts of interest on certain DOD contracts.

Performance by private security contractors of inherently governmental functions in an area of combat operations. Section 841 would regulate the use of private security contractors.


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