September 26 2008 Copyright 2008 Business Research Services Inc. 301-229-5561 All rights reserved.

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Senate Punts on Contracting Issues

The Senate has passed the 2009 Defense Authorization bill without acting on a package of contracting amendments, leaving those issues to be decided in a House-Senate conference that will write the final legislation.

The Senate did not vote on an amendment that would have blocked SBA from implementing its limited set-aside program for woman-owned businesses. However, because of a controversy over earmarks. Democratic leaders decided to pass the Defense bill, S. 3001, without considering any of the amendments. The bill was approved Sept. 17 by an 88-8 majority.

Section 831 of the Senate bill would create a database of defense contractors listing suspensions, debarments, criminal convictions and administrative or civil judgments. The House has voted to create a governmentwide database covering all contractors that would be accessible to the public.

Section 832 would establish a code of ethics for employees of defense contractors who work on “acquisition functions closely associated with inherently governmental functions.” It would require those employees to submit personal financial disclosure statements, and would prohibit conflicts of interest and the use of non-public government information for personal gain.

The House version of the Defense bill, H.R. 5658, includes widespread changes in government procurement rules, many of them opposed by industry. California Democratic Rep. Henry Waxman’s so-called “Clean Contracting” amendment would require agencies to minimize the use of sole-source and cost-plus contracts and mandate that all contractors on multiple award contracts be given a fair opportunity to bid on task orders.

All provisions of both bills will be on the table when the conference crafts the final version. However, the Bush administration has threatened a presidential veto of the Senate version. According to a statement, the administration objects to provisions prohibiting public-private job competitions and restricting use of private security-guard contractors in Iraq.


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