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Washington Insider

NASA plans to negotiate lower prices from some contractors on its Outsourcing Desktop Initiative for NASA (ODIN) contract.

The agency’s inspector general found that prices on the ODIN contract for some software and computer peripherals such as hard drives were higher than those advertised on the Internet. NASA’s chief information officer, Jonathan Pettus, said the agency will develop procedures for negotiating price reductions.

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SBA is trying to thaw the freeze in its loan programs with new steps to make the federally guaranteed loans more attractive to lenders.

The agency announced an interim final rule allowing new SBA loans to be made with an alternative base interest rate, the one month LIBOR rate (London Interbank Offered Rate), in addition to the prime rate, which was previously allowed. In recent weeks the adjustable LIBOR rate has been substantially higher than the prime, squeezing SBA lenders whose costs are based on the LIBOR.

A second rule change allows a new structure for assembling SBA loans into pools for sale in the secondary market. A leading industry publication, the Coleman Report, said the secondary market for SBA loans had frozen in September, forcing many banks to stop lending. (SAA, 11/7)

“The challenge small businesses face today is not the cost of capital, it is access to capital,” said Acting SBA Administrator Sandy Baruah. “This interim final rule is an important step to reenergize the lenders to make SBA-backed loans and will help open the gateway of capital for entrepreneurs.”

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Connecticut Senator Joe Lieberman will remain chairman of the Homeland Security and Governmental Affairs Committee next year, despite the Democrat-turned-Independent’s vocal support of Republican presidential nominee John McCain.

Some Democrats wanted to strip Lieberman of the chairmanship, but the party caucus voted 42-13 to allow him to keep it. He will give up his seat on the Environment and Public Works Committee as a milder form of punishment.

Lieberman had threatened to caucus with Republicans if Democrats took away his chairmanship. Although Democrats will control at least 58 Senate seats in the next Congress (two are still undecided), they could need Lieberman to reach the super-majority of 60 necessary to end a filibuster.

Lieberman’s committee has jurisdiction over federal contracting. In this year’s campaign, he also supported the re-election bid of the panel’s ranking Republican, Sen. Susan Collins of Maine.

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The leading voice on procurement issues in Congress, Rep. Tom Davis, R-VA, said he will join Deloitte Consulting as a director in its Washington office. Davis is retiring after 14 years in the House, including service as chairman of the Government Reform Committee.

He told the Washington Post he will draw a seven-figure salary, but will not be lobbying for the company, which has a substantial government contracting business. Before entering politics Davis was general counsel of technology contractor PRC Inc.

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Information about federal contacting opportunities for small businesses interested in post-disaster cleanup and rebuilding in areas devastated by recent storms and flooding is now available through SBA’s Disaster Contracting Assistance Center at www.disastercontractingassistance.gov.

The website provides a central point of reference for small businesses, particularly minority, women and veteran-owned businesses, to register for and learn about federal contracting opportunities.

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A former Defense Logistics Agency employee was sentenced to probation for failing to report income she earned when her business did work for DOD.

Constance Walton of Mitchellville, MD, was fined $10,000 by U.S. District Judge Emmet G. Sullivan in Washington. She pleaded guilty in July to one count of making a false statement.

According to court documents, while working for DLA she owned a business that received more than $100,000 from Army from 2000 to 2006, but did not report it to DOD.


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