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Senator: Get Moving on New Sole-Source Rule

A key senator says the Office of Management and Budget has been too slow to implement a law placing new controls on sole-source contracts, a provision that could slow awards to Alaska Native firms.

Congress has ordered public release of justifications for sole-source contracts exceeding $20 million. The provision was part of the 2010 Defense Authorization Act that was signed into law last October.

Sen. Claire McCaskill, D-MO, chair of the contracting subcommittee of the Senate Homeland Security and Governmental Affairs Committee, said she is disappointed that regulations have not yet been issued to implement the law.

McCaskill believes the law will help rein in large sole-source awards to Alaska Native Corporations by requiring higher-ups to approve justifications for the contracts. Some contracting officers have told the Government Accountability Office that they turn to Alaska companies because sole-source awards are quick and convenient.

McCaskill has been the leading opponent of the Alaska companies’ procurement preferences after several of them received sole-source contracts worth hundreds of millions of dollars. “The notion that some of these corporations, large as they are, never have to compete should be offensive,” she said at a June 30 hearing.

Unlike other 8(a) companies, the Alaska firms can receive sole-source contracts in unlimited amounts. “I think the 8(a) program is a wonderful program for small companies trying to get their foot in the door,” McCaskill said. “There are very few Alaska Native Corporations that fit that definition.”

OMB will conduct tribal consultations before issuing regulations, because the law will affect American Indian and Alaska Native tribal businesses, said Dan Gordon, administrator of the Office of Federal Procurement Policy. But tribal representatives told Government Executive magazine that the talks have not yet been scheduled.

“I’m not really sure what the consultation is about,” McCaskill told him, “because you’re not going to change the law.”


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