Industry, senators push to block 'blacklisting' rules

Two senators, the high-tech industry and members of the broader business community on Tuesday urged the Senate to vote on legislation that would block new rules establishing ethics standards for government contractors. The so-called "blacklisting" rule, which the Clinton administration is working to implement this year, is designed to prevent companies with questionable labor relations and other ethically dubious practices from winning federal contracts. S. 2986, sponsored by Sen. Tim Hutchinson, R-AR, and Senate Majority Whip Don Nickles, R-OK, would block the rules from implementation until the General Accounting Office could conduct a study on their impact. "The problem with the regulations is that you are guilty before you are declared innocent," said Harris Miller, president of the Information Technology Association of America, at a news briefing. Miller, whose group is part of a coalition of high-tech companies opposing the legislation, said the proposal's language puts too much power and responsibility in the hands of government contracting officers. High-tech companies contend those officers may not be equipped to determine whether a contractor has conducted questionable or dubious business practices that would bar them from getting a government contract. They also fear that competitors could make the procurement process too political. Even two government agencies, the Environmental Protection Agency and the General Services Administration, have expressed concern with the regulations, Hutchinson said. Hutchinson's legislation mirrors that of an amendment sponsored by Virginia Reps. Jim Moran, D, and Tom Davis, R, that also would block the rules from implementation until a study could be conducted. The amendment passed as part of the Treasury-Postal appropriations legislation in the House in July, but then was stripped out when the Treasury-Postal spending bill was combined with the Legislative Branch spending bill. The spending legislation is still in limbo as it has failed to pass through Congress and could end up part of a catch-all spending bill. "The amendment is still part of the base Treasury-Postal bill and so it is murky now what will happen," said Davis spokesman David Marin. "The bottom line is that the momentum is with us." Miller said that with only a week and a half left in the congressional session, it probably is unlikely that Hutchinson's legislation would be considered as a stand-alone bill, but the senator is searching for a vehicle for the bill. Miller also said that if Congress fails this year to stop the regulations, next year's Congress likely would reconsider banning the blacklisting rules. High-tech firms could be especially at risk under the new rules. The federal government is the largest single purchaser of high-tech goods and services, and industry leaders fear the potential loss of federal contracts could be devastating to some. The proposed regulations followed a 1997 statement Vice President Al Gore made to the AFL-CIO stating that he would seek to change the Federal Acquisition Regulation.