June 24 2011 Copyright 2011 Business Research Services Inc. 301-229-5561 All rights reserved.

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Industry Groups Say Interim Rules Are Unfair

Last month the Obama administration issued an interim rule mandating that 95% of new contract actions require the use of products that are designated as energy-efficient, water-efficient, biobased, environmentally preferable, non-ozone depleting or those that contain recovered materials.

The requirement became effective on the day it was issued, May 31.

The Council of Defense and Space Industry Associations, an umbrella group of six contractor organizations, said that is the latest example of the administration’s excessive use of interim rules, which take effect before public comments are received.

They said interim rules circumvent the regulatory process and break with the administration's promise of transparency.

In a letter to Dan Gordon, administrator of the Office of Federal Procurement Policy, the group wrote, “We believe that the ever increasing reliance on the use of interim rules violates the spirit of the Office of Federal Procurement Policy Act (FAR), at a minimum, and misuses the ‘urgent and compelling’ exception to the standard notice and comment process outlined in the FAR.”

The sustainability rule implements executive orders previously issued by Presidents Obama and George W. Bush. Regulators also often use interim rules to implement policies ordered by Congress.

In its letter, the council said administration officials had previously assured industry that the sustainability requirements would be phased in to give suppliers time to adjust. The council called on the administration to withdraw the rule and seek public comment.


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