Congress Enacts Package of Contracting Changes Congress has approved a smorgasbord of amendments designed to increase competition and tighten controls over federal contracting. The 2009 Defense Authorization bill incorporates provisions of the Clean Contracting Act sponsored by House Oversight Committee Chairman Henry Waxman, D-CA, and another bill introduced by Sens. Joe Lieberman, I-CT, and Susan Collins, R-ME. Waxman said, “The Clean Contracting Act requires agencies to enhance competition in contracting, limit the use of abuse-prone contracts, start the effort to rebuild the federal acquisition workforce, strengthen important anti-fraud measures, and increase transparency in federal contracting,” Waxman said. “This legislation says that Congress is serious about stopping waste, fraud and abuse.” The bill was awaiting President Bush’s signature at press time. Among the changes: Enhanced Competition Limits on emergency sole source contracts. A sole source contract awarded under urgent and compelling circumstances must be competed after one year. Enhanced competition on multiple award contracts. All contractors on multiple award contracts must be given fair opportunity to bid on all task and delivery orders, or the contracting officer must receive at least three bids. That has been the rule for the Defense Department for several years; it will now apply to all agencies. Curbing “Abuse-Prone” Contracts Controls on cost-plus contracts. New regulations are required to minimize the use of cost-reimbursement contracts. Waxman says spending under this type of contract grew by more than 75% between 2000 and 2005. Prohibiting excessive tiering of subcontractors. New regulations will be designed to prohibit “excessive mark-up charges.” Controls on commercial item purchases. Additional cost and pricing information will be required from contractors selling goods and services “of a type” found in the commercial marketplace. Controls on interagency contracts. Requires new rules to prevent abuse of interagency contracts. Linking award fees to acquisition outcomes. Award fees can be paid only when a contractor has at least a satisfactory level of performance. Ethics and transparency Contractor database. The database will list suspensions, debarments, criminal convictions and any civil or administrative findings of liability over the previous five years. The database will be available to federal officials, but not to the public. Conflict of interest. The Office of Federal Procurement Policy will develop standard clauses covering personal conflicts of interest by contractor employees who are hired to assist agencies with their contracting processes. Acquisition Workforce Strategic plan. The Office of Management and Budget will develop a strategic plan to increase the size and funding of the acquisition workforce. Contingency contracting corps. A specially trained cadre of people will be created to facilitate rapid contracting in the event of a national emergency. Several controversial provisions were dropped from the final bill. A moratorium on public-private job competitions at the Defense Department was deleted, along with a ban on use of contract interrogators in U.S. military detention facilities.