Contractors and Administration Officials Raise Concerns on Federal Contracting Bills
The House Oversight and Government Reform Subcommittee on Government Management, Organization and Procurement held a hearing on three bills this week: the Government Contractor Accountability Act (H.R. 3928), sponsored by Representative Christopher Murphy (D-Conn.); the Contractors and Federal Spending Accountability Act (H.R. 3033), co-sponsored by Carolyn Maloney (D-N.Y.) and Chairman Edolphus Towns (D-NY); and the Contracting and Tax Accountability Act of 2007 (H.R. 4881), sponsored by Representative Brad Elsworth (D-Ind.).
Representatives of federal contractors and a Bush administration official raised concerns over potential unintended consequences of pending contracting reform legislation. H.R. 3928 would require contractors to disclose the names and salaries of its most highly compensated officers if more than 80 percent of the company's annual revenue comes from federal contracts and if the company holds contracts worth more than $5 million in any fiscal year.
Currently, while the compensation of heads of publicly held companies is widely available, private companies are not obligated to fully disclose that information. H.R. 3033 would mandate the creation of a government-wide database of information on contractor performance and misconduct, while H.R. 4881 would prohibit awards of contracts or grants in excess of the simplified acquisition threshold unless the prospective contractor or grantee certifies in writing to the agency awarding the contract or grant that the contractor or grantee has no seriously delinquent tax debts.
Although no immediate actions on these bills are anticipated, AGC will work with Committee staff and allies to educate members on our opposition to this legislation.
For more information, contact Perry L. Fowler at email@example.com or (202) 547-1983.
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