Democrat maps out aggressive agenda for contracting oversight panel

The Senate subcommittee responsible for providing oversight of the more than $500 billion federal marketplace has charted an aggressive agenda for the coming months that could cause squeamish moments for both industry leaders and federal agencies.

The Homeland Security and Governmental Affairs Subcommittee on Contracting Oversight plans to hold a Nov. 18 hearing on Afghanistan reconstruction projects and is conducting investigations of Energy Department procurements, public relations contracts and acquisitions connected to congressional earmarks, according to Sen. Claire McCaskill, D-Mo., chairwoman of the panel.

"Contracting needs to be as efficient, accountable and transparent as possible," McCaskill told the Coalition for Government Procurement, an industry trade group, in a video message on Nov. 1.

The first order of business when Congress returns for a lame duck session on Nov. 15 will be a hearing on the effectiveness of the Special Inspector General for Afghanistan Reconstruction at preventing and detecting waste, fraud, and abuse. The subcommittee also will review SIGAR audits, investigations and recommendations.

McCaskill was one of four senators to write to President Obama in September asking him to remove Arnold Fields as head of the SIGAR Office. The letter claimed Fields' office is a "failing organization" incapable of meeting the minimum standards for performing audits and investigations.

The senators also have raised concerns about a sole-source $95,000 SIGAR contract in July to a law firm run by Joseph E. Schmitz, the Defense Department's former inspector general. The contract called for the firm to independently monitor SIGAR's operations after the Council of Inspectors General on Integrity and Efficiency -- a group that provides oversight of the IG community -- cited SIGAR for investigative deficiencies.

In a letter inviting Fields to testify, McCaskill said he should be prepared to address the deficiencies the CIGIE found and the Schmitz contract.

McCaskill has invited other watchdogs to testify at the hearing including Special Inspector General for Iraq Reconstruction Stuart Bowen, Defense Department Inspector General Gordon Heddell and U.S. Agency for International Development Inspector General Donald Gambatesa.

The senator also plans to introduce a bill after the Senate returns from recess designed to put Alaska native corporations on equal footing with other small disadvantaged firms operating in the Small Business Administration's 8(a) Business Development program. Most notably, the bill would eliminate the ability of ANCs to receive sole-source contracts of unlimited value. All other 8(a) firms have their noncompetitive contracts capped at $3.5 million, or $5.5 million for manufacturing.

ANCs would be required to exit the 8(a) program after nine years -- just like other participants. Alaska native firms no longer would be automatically designated as socially and economically disadvantaged. The corporations would have to prove individually that they are at a social disadvantage by providing evidence of "racial or ethnic prejudice or cultural bias within American society because of their identities as members of groups."

McCaskill is likely to face stiff resistance to the measure from the Alaskan senators, who argue the ANC program is vital to one of the poorest and most underserved populations in the country.

"This bill is misguided, misinformed and shows a clear lack of understanding for how important the program is for the people of Alaska," Sen. Mark Begich, D-Alaska, told Government Executive in October.

The legislation would not apply to corporations owned by Native tribes or operating as Native Hawaiian Organizations, subcommittee staff director Margaret Daum said during the Coalition for Government Procurement conference.

The subcommittee also is planning an examination of federal contracts that have been used for public relations, Daum said.

"The government should not be spending money to spin its work to the American people," Daum said. "What the government is doing may not be illegal but it also may not be the best use of government resources."

Formed in 2009, the subcommittee has held 14 hearings.