Responding to concerns raised by some high-tech companies, a group of House members is calling on the Clinton administration to withdraw proposed changes to federal standards outlining procedures government agencies should use when buying products from private contractors.
In a letter sent Wednesday to Jacob Lew, director of the Office of Management and Budget, more than 30 lawmakers, led by Rep. Tom Davis, R-Va., said the proposed changes to the Federal Acquisition Regulation put information technology companies at risk for "unfair exclusion" from the $28 billion worth of federal contracts for IT products a year.
The proposed changes, which are open to public comment until November, would require federal contracting officers to take into account a company's lack, or alleged lack, of compliance with tax, labor, employment, health and safety and equal opportunity employment laws when awarding contracts.
"While companies strive to abide by all federal regulations and to provide a positive work environment for their employees, deviations and, more importantly, alleged deviations from these practices should not deny a historically responsible contractor from award based on an arbitrary decision," wrote the lawmakers, which included House Majority Leader Dick Armey, R-Texas, and Rules Committee Chairman David Dreier, R-Calif.
They also argue that current regulations effectively deal with the issue of ensuring the federal government does business with responsible and ethical companies.
Nancy Saucier, manager of domestic policy for the American Electronics Association, said IT companies are concerned that such issues as industry's high rate of employee turnover will be used against them when they try to obtain federal contracts. She also expressed concern that proposed changes will cause delays in the procurement process, a particular problem for IT companies, whose products are constantly being updated.
OMB argues that the proposed regulations are nothing more than a "common sense clarification" of current regulations and are intended to make sure all contracting officers are aware that they should take into account potential violations when awarding contracts. OMB also has said that a company's record on such issues as labor or tax laws provides a good indication of that firm's willingness and capability to fulfill the contract.
After hearing about Davis efforts, OMB officials went on the defensive, sending a fax to Democratic House staffers urging them to persuade their bosses not to sign the letter. Despite OMB's efforts, a half dozen Democrats signed the letter, including Reps. Anna Eshoo of California and James Moran of Virginia.
Davis expressed frustration with the OMB's efforts to persuade members not to sign his letter, saying "they're paranoid." He added that he would like to work with the administration to resolve the issue. An aide to Davis said he may meet with the OMB official in charge of the regulation to discuss lawmakers' concerns with the regulation change.