July 27 2007 Copyright 2007 Business Research Services Inc. 301-229-5561 All rights reserved.

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Washington Insider

The House Ways and Means Committee has voted to delay implementation of tax withholding on payments to contractors, pending a study of its impact.

The provision was part of a tax bill passed by Congress in 2005. Beginning in 2011, it would require federal, state and local governments to withhold 3% of all contractor payments as income tax.

Contractor groups said they will continue to push for repeal of the requirement.

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The Defense Department’s Transportation Command has awarded four small firms and six large ones places on a multiple-award IT services contract worth up to $250 million over five years.

The small business winners are S4 Inc., Paragon Technology Group, Complete Professional Services and Asynchrony Solutions Inc.

Large-business awards went to Unisys, Systems Research and Application Corp., Northrop Grumman Mission Systems, Computer Sciences Corp. and CACI Premier Technologies.

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New Mexico-based Akal Security Inc. has agreed to pay $18 million to settle allegations that it violated the terms of its contract to provide trained guards at eight Army bases.

While denying the government’s civil claims, Akal acknowledged it had failed to provide proper training to some guards when it was ramping up to handle new contracts in 2003 and 2004.

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A former executive of a Long Island defense contractor has pleaded guilty to a bid-rigging and kickback conspiracy. The Justice Department announced that Robert Fischetti, former sales director of Peck & Hale LLC, agreed to serve 10 months in prison.

He will cooperate with the government’s ongoing investigation. Justice said it is the third guilty plea in its probe of the military restraints industry.

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The Coalition for Government Procurement has promoted vice president Larry Allen to president. He will succeed the retiring Paul Caggiano on Aug. 15.

Allen has been one of the most visible spokesmen for contractors in his 17 years as vice president.

Bill Gormley, president of Washington Management Group and FedSources Inc. in McLean, VA, will become the chairman of the coalition’s board.

The coalition primarily represents GSA schedule contractors.


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