Pro-labor contracting rules could finally be released

Two and a half years after Vice President Gore first suggested changing federal procurement regulations to favor companies with strong records in labor-management relations, rules implementing the change are about to be released.

Over the past week, the Clinton administration has taken steps that could result in the publication later this month of proposed changes to Federal Acquisition Regulation (FAR) Part 9, including the listing of new examples-such as a company's labor-relations record-under the "responsibility criteria" that must be used when agencies gauge potential contractors.

In addition, the administration proposal would amend FAR Part 31 to prevent the reimbursement of companies for costs they incur defending themselves from unfair labor practice complaints or for actions that oppose union organizing efforts.

On May 28, Dierdre A. Lee, the administrator of the Office of Federal Procurement Policy, forwarded the proposed changes to the Federal Acquisition Regulatory Commission, the three-person panel that oversees changes to federal procurement regulations. If the panel finds no technical problems, the proposal could be published in the Federal Register by "mid-to-late June," according to a memo sent to congressional aides by Elizabeth Gore, an Office of Management and Budget staffer. (Gore is no relation to the Vice President.)

Labor leaders have long supported the proposal, arguing that it fairly targets companies with poor labor-relations records. Business groups, however, call the proposals "blacklisting regulations" that could effectively disqualify companies-for frivolous reasons-from a market worth about $200 billion annually.

The proposal surfaced more than two years ago when Gore announced his support for it at an AFL-CIO executive board meeting. Since then, internal disputes within the Clinton administration--including concerns about it among agency procurement officials--have held up publication of regulations, sources said. An industry source said the latest move seems politically timed, coming just as Gore faces gains in labor support by fellow Democratic presidential contender Bill Bradley.

Sources said Clinton administration officials gave key congressional aides from both parties a briefing on the proposed new regulations during a series of meetings last week. "The advance notice was much appreciated," said a Republican Hill aide familiar with the meeting, "but certain members communicated to the administration representatives that this is something they can expect some serious resistance on."

The aide added that many of his colleagues consider the administration's move to be "an insult to Congress," since previous congressional efforts to make the changes have consistently failed.