Congress Takes a Hard Look at Irresponsible Contractors

On Feb. 15, Sen. Byron Dorgan (D-ND) introduced the Honest Leadership and Accountability in Contracting Act, which is aimed at curbing abuse in government procurement and increasing competition and transparency. Concerns about federal contracts have been rising over the last few years as inquiries into contracts for Iraq reconstruction and Hurricane Katrina response have uncovered serious deficiencies or more questions.

Dorgan's bill (S. 606) would attempt to increase contractor accountability through several mechanisms. First, Dorgan proposes to use increased competition for federal contract dollars to minimize waste and overspending. Provisions in the bill would require that large "umbrella" contracts valued over $100 million to be awarded jointly to at least two companies that would then compete for delivery orders worth more than $1 million. This approach could counter the troubling trend of increasing concentration of federal contract dollars within a small number of companies.

S. 606 would also hold contractors responsible for prior performance and activities. Scofflaw companies that have histories of violating labor, environmental, health and safety, and other laws would be prohibited from receiving federal contracts. Additionally, the bill would require that a website be established that provides information on contractors' compliance with laws, fines or misconduct charges. President Clinton attempted to put such contractor responsibility procedures in place through an administrative rule that President Bush repealed almost immediately upon taking office.

The bill would also attempt to reign in conflicts of interests by establishing restrictions on contracting officials going to work for companies to which they awarded contracts and requirements that appointees to positions that involve procurement have professional credentials and relevant expertise. Another provision would prohibit outsourcing oversight of federal contracts, a maneuver recently pursued by the General Services Administration, a major procurement agency for the federal government.

The bill is identical to legislation Dorgan introduced during the 109th Congress, which failed to advance. However, with Democrats in control of both the Senate and House and increasing attention on contractors, the bill could see movement this year. The bill has 23 Democratic co-sponsors.

back to Blog