Set-Aside Alert news analysis:
The post-election situation:
An election cannot be both legitimate and illegitimate;
What’s at stake for small business federal contractors
The atmosphere in Washington, DC has been very tense for weeks, starting before the presidential election, and the anxiety has ratcheted up even more for many after the election.
The presidential election was held on Nov. 3, and the apparent winner was announced by the media, as has been customary for decades. Immediately following the election and continuing to the present, the apparent loser and his allies have alleged in more than 45 lawsuits that there was massive fraud in the election. Judges have rejected all of those lawsuits, primarily for lack of evidence.
Since Nov. 3, many states have certified the election results. It would seem there would have to be a mountain of fresh evidence to stop the Inauguration of President-elect Joe Biden.
Yet the apparent loser--President Donald Trump--continues to declare to large crowds of supporters that he won. Leaders in his political party have been mostly silent.
The stakes could not be higher. In recent days, Trump repeatedly has urged Congressional and state elected officials to overturn the Nov. 3 election and name him the winner.
Obviously, we cannot have two presidents. Something has got to give.
Small business federal contractors should be worried. While the standoff at the top levels of the US government, and the silence from top Republicans, may seem distant, there are risks for federal contractors, especially if the situation persists.
Rule of law and markets
Small business federal contractors are very much aware of how much their livelihood depends on adhering to the rule of law, to honesty and fairness, and to facts and science.
There are multiple rules upholding those principles in federal contracts, protest decisions and inspector general reports. Under the laws of economics, a free and fair marketplace demands the rule of law.
If those bedrock principles are not upheld in a marketplace, massive corruption generally follows. This has been the case in many autocracies and developing countries.
Small business federal contractors throughout modern history have strongly supported the rule of law within the federal government. It is a necessary requirement for both sellers and buyers in order to conduct business.
It is fair to say that despite this critical reliance on the rule of law, there is a current political situation in which that rule of law is being questioned at the very highest levels.
A presidential election was held, and the usual efforts are underway to complete its certification and move toward Biden’s inauguration.
At the same time, Trump is claiming that the election was invalid and is seeking to overturn it.
Clearly, the rule of law is at stake, as the election--and therefore the next president and presidential administration--cannot be both legitimate and illegitimate.
What are the implications of this situation during this presidential transition period? What is the role of federal contractors?
These are developing critical questions for contractors and citizens.
Implications during the transition
The post-election transition period we are experiencing is extremely unusual. Never in modern history have we seen a president push to overturn a presidential election.
The current situation brings dire risks to those on both sides of the conflict. The president has put direct pressure on state and local officials in Michigan, Georgia, Pennsylvania and possibly other states to overturn the election. State and local officials and others that resisted his demands have received death threats. Armed protesters appeared outside a state official’s home in Michigan. A Georgia state official pleaded for the rhetoric to be toned down, to no avail.
There have been threats apparently from the political left as well. Emily Murphy, administrator of the General Services Administration, wrote that she received threats for allegedly delaying Biden’s presidential transition.
Trump has pressured federal employees and officials. He fired the government’s top cybersecurity expert, Chris Krebs, who also received threats, after Krebs said there was no massive fraud in the election. Similarly, Attorney General William Barr is expected to be leaving the administration shortly after saying the Justice Dept. did not find massive fraud in the election.
From a federal contractor’s perspective, this sense of chaos, uncertainty and possible violence cannot be good.
So far, the U.S. business community and federal contractors generally have not spoken out about the politically-charged and very-high-stakes situation we’re in. That may change if the conflicts continue to escalate.
Looking at all possibilities and beyond the inauguration is beyond the scope of this article. But certainly if chaos continues at the top levels of the US government and the rule of law continues to be at risk, that would be bad for the federal market and for US markets in general.
Federal contractors’ role
The fate of federal contractors is very closely tied to the fate of the US government. If the current chaos continues, it likely will impede a smooth transition to Biden’s incoming administration, likely causing delays and cancellations in programs. Depending on how it plays out, there could be much deeper impacts.
There are at least two important actions for contractors to consider taking now:
- One, to judge for themselves, fairly and honestly, based on a thorough and objective review of the evidence, which presidential candidate and political party to support in this post-election time; and
- Two, to urge their elected officials to uphold the rule of law and to speak out against politically-motivated violence and threats of violence at this critical time.
It’s certainly possible that there were some isolated incidents of fraud in the election. It’s much more concerning to allege, as Trump has done, that there was widespread fraud sufficient to “steal” the election. Serious allegations require serious proof.
Court documents are publicly available that show the evidence that has been presented to back up the claims of widespread election fraud through a vast conspiracy (see Web links to the documents below).
To date, the allegations of massive irregularities have been tested in courts and have been nearly all dismissed. Judges have rejected at least 45 such lawsuits for lack of evidence. The Trump team so far has won only one case affecting a small number of ballots in Pennsylvania.
On Dec. 8, the Supreme Court rejected one of the Trump ally petitions despite offers from Sen. Ted Cruz, R-TX, to argue on behalf of the plaintiffs in court. The case involved a question of whether Pennsylvania’s absentee ballot rules in the election were unconstitutional.
The Pennsylvania Supreme Court had ruled that it was improper to bring such a case to a court after an election, as there was ample time to bring any constitutional objections to a court before the election. The plaintiffs appealed to the U.S. Supreme Court, which denied the case a hearing.
The current situation remains worrisome, with troubling implications if it continues. A federal marketplace does not run on automatic. People need to believe in it, and contractors need to be willing to uphold its foundational principles based on the rule of law, freedom, fairness, honesty and reliance on facts and science.
Those principles are at risk at this time. That’s the atmosphere we are now operating in.
