By John T.H. Carpenter, Cherry, Bekaert
& Holland, L.L.P. (CB&H)
Email: jthcarpenter@cbh.com
As reported in our last issue of GovTract, there have
been numerous pieces of legislation introduced in the current Congress
dealing with the perception of widespread “fraud, waste and
abuse” in government contracting. Congressman Waxman’s
Committee on Oversight and Government Reform has held high-profile
hearings into issues related to wartime procurements.
In September 2007, Sens. Jim Webb (D-VA) and Claire McCaskill (D-MO)
sponsored a bill (S. 1825) that would set up a commission to investigate
and reform wartime contracting. The commission, modeled on the Truman
Committee that exposed $15 billion of waste and fraud in World War
II contracting, would be given subpoena powers and a broad mission.
Their proposal would also expand the powers of the Special Inspector
General for Iraqi Reconstruction (SIGIR), which was established
to expose waste, fraud and abuse.
If established, the commission will have the opportunity to focus
more attention on reforming the government contracting process generally,
and would be charged with:
• Investigating wartime contracting and procedures
• Recommending changes to reform and improve contracting procedures
• Expanding the authority of the SIGIR
As of the end of 2007, House and Senate negotiators had reached
agreement on funding for the commission in the Defense Authorization
Bill. That bill was vetoed by President Bush at the end of December.
Many contractors have followed these proceedings and wondered what
to do. When only a handful of high-profile contractors (like Blackwater
USA) are being subpoenaed to appear before the Waxman Committee,
it is easy for others in the industry to declare that this is a
battle easier fought by others. However, with the Waxman Committee
focusing on the issue, the Webb/McCaskill-sponsored commission promises
to bring more scrutiny, and government employee unions screaming
for “re-federalization” of previously outsourced positions,
there needs to be a far-reaching response from the contracting community
to counteract these forces.
Most significantly, contractors should contact and correspond with
their local Congressional representatives and senators regarding
their positions on the issues. Stay abreast of proposals being debated
in Congress and encourage your employees to do the same. After all,
their positions may be the next ones proposed for re-federalization.
Invite your Congressional representatives to visit your place of
business. Inform them as to how many employees are in your firm
– remember that “employees = voters” in the minds
of members of Congress. While home when Congress is in recess, representatives
often like to visit local employers to stay in touch with constituents.
Ask for that audience!
Make them aware of the importance of the work that your firm performs
for the government. If your firm has made notable improvements or
recommendations in products or services procured by the government,
highlight these for your Congressional representatives. Congress
needs to be reminded of the many process improvements offered by
contractors every day.
Become more active in local and national industry associations that
represent government contracts such as the Professional Services
Council (PSC). Associations like the PSC pool the resources of member
firms to promote the lobbying and educational interests of industry.
While some may advocate the ostrich approach of sticking one’s
head in the sand, most readers that we speak with are advocating
an active approach by contractors to educate the Congress about
the issues. The political pendulum has clearly swung against the
contracting community, and contractors will need to rally around
the issues in order to move the pendulum back in the other direction.
Dave is a Principal with CB&H
and a member of the Firm's Government Contractor Services Group.
