U.S. House panel passes contracting reform bill
Source: Reuters
(adds Pentagon report) By Andrea Shalal-Esa WASHINGTON, March 13 (Reuters) - Spurred by contracting abuses in Iraq and after Hurricane Katrina, a U.S. House of Representatives committee on Tuesday approved a bill that would limit use of noncompetitive contracts and improve oversight. The bill, introduced in the House by Rep. Henry Waxman, a California Democrat and chairman of the House Committee on Oversight and Government Reform, would also put stricter limits on the types of industry jobs government officials can take upon their retirement. It will also include criticism of a decision by U.S. oil services company Halliburton Co. <HAL.N> to move its headquarters and chief executive to Dubai, although congressional aides said details were still being worked out. The measure passed the House Armed Services Committee on a 53-0 vote, and could be debated by the full House as early as Thursday, congressional aides said. Sen. Susan Collins, a Maine Republican, introduced a similar bill targeting contracting reforms in the Senate last month. It is moving through the Senate Homeland Security and Governmental Affairs Committee. The Senate Armed Services Committee is exploring its own acquisition reform measures that could be included in the 2008 defense authorization bill, one Senate aide said. Waxman said reforms were needed after congressional hearings on Iraq reconstruction, Hurricane Katrina, Department of Homeland Security contracts and other areas exposed a "pattern of reckless spending, poor planning, and ineffective oversight by contract officials that has resulted in the waste of hundreds of millions of taxpayer dollars." A House aide said the legislation was a good first step, but additional measures would likely be necessary. PENTAGON REPORT Pentagon acquisition chief Ken Krieg outlined internal plans in a new report to Congress, including tougher new rules on award and incentives fees, measures to accelerate the procurement process, evaluate cost and schedule risks before programs are approved, and stabilize program requirements. "Every aspect of how we do business is being assessed and streamlined to deliver improved capabilities to the nation's warfighters and visibility to our executive leadership," said the report, which was made public this week. On Tuesday, the House Armed Services Committee approved several changes to the Waxman bill that were suggested by committee chairman Rep. Ike Skelton, a Missouri Democrat. The bill tries to encourage greater use of fixed-price procurement contracts, minimize noncompetitive "sole-source" contracts and ensure public access to acquisition documents. It requires quarterly reports to Congress on audits that reveal unjustified spending or performance deficiencies. The legislation has drawn the ire of 11 trade associations, including the Aerospace Industries Association, the American Shipbuilding Association and the U.S. Chamber of Commerce. In a letter to Waxman, the groups said requiring reporting of unallowable costs would equate routine audit discussions with corporate "wrongdoing." The new version of the bill increased the trigger for such reports tenfold to $10 million. The groups also said industry generally preferred fixed-price contracts, but warned that such contracts were often not feasible in emergency and contingency situations. The bill would also reduce possible conflicts of interest by requiring contract officers to disclose not only their own job offers, but also those made to their family members.
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