House to Consider New Rules for No-Bid Contracts

[maddezmom]

House to Consider New Rules for No-Bid Contracts

By Renae Merle and Dana Hedgpeth
Washington Post Staff Writer
Wednesday, March 14, 2007; Page D03

The House is scheduled to take up legislation this week aimed at putting new curbs on no-bid contracts and cost overruns, the first of several congressional initiatives seeking to place new limits on government contractors.

The legislation sponsored by Rep. Henry A. Waxman (D-Calif.) would limit no-bid contracts issued in times of emergency to one year. It would require government agencies to report to Congress within 14 days to explain why a competition wasn't held for any sole-source contracts. The measure would also order any cost overrun of $10 million or more to be reported to Congress, and it encourages agencies to use fixed-price contracts in which companies are paid a set amount for their work, instead of other contract structures that allow companies to pass on rising costs.


"This is an important first step towards fixing the broken government contracting system. By limiting the use of non-competitive contracts, increasing transparency . . . we can begin to restore accountability and integrity to federal contracting," said Waxman, chairman of the House Committee on Oversight and Government Reform.

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War profiteering includes fraudulent schemes and material overcharges with the intent to excessively profit from war, said Barry Piatt, a spokesman for Dorgan. "There is no bright-line test for 'excessive profit,' but there is an 'intent' requirement, so the evidentiary bar would be rather high -- you'd need to have evidence of a scheme to rip off the government," he said.

Sen. Susan Collins (R-Maine) has introduced legislation similar to Waxman's that also would require a study of the government's increasing use of contractors to manage large programs, known as lead systems integrators. The Coast Guard's use of such a management structure for its massive modernization program, known as Deepwater, has been criticized by government auditors who concluded that the agency turned over too much power to the contractors, Lockheed Martin and Northrop Grumman.

Collins cited troubles in other programs, as well.

more:http://www.washingtonpost.com/wp-dyn/content/article/2007/03/13/AR2007031301695.html

[Demeter]

1. Yes! End The Reagan Era For Good!