Federal Service Contracts Threatened

Legislation introduced in the U.S. House places moratorium on all federal contracts!

For decades, businesses have worked in cooperation with the federal government to provide efficient and cost effective services for America's taxpayers.  Through federal service contracts, thousands of businesses help our nation’s government run more efficiently. All parties involved in these relationships benefit, including government, business, and taxpayers. The government saves taxpayers billions of dollars by partnering with business, and government investment in these companies helps sustain our nation’s competitive edge in industries such as defense, information technology and management. 

The U.S. Chamber continues to be a leader in Washington D.C., urging even more of the federal government's commercial activities to be transferred to the private sector. This goal is mirrored in President Bush’s initiative to manage our government in a more results-oriented and performance-based manner. 

 The TRAC Act

This mutually beneficial relationship is being threatened. Recently, Rep. Wynn (MD-4) introduced H.R. 721, the Truthfulness, Responsibility and Accountability in Contracting (TRAC) Act, which, if passed, could force a virtual shutdown of critical government activities by imposing a moratorium on ALL federal service contracts. 

H.R. 721 would affect all government service contracts, including those involving environmental protection, air traffic control systems, school and highway construction, and military and national security. As drafted, the TRAC Act places a moratorium on all service contracts, suspends all new contracting, privatization, outsourcing, re-competition, and requires agencies to implement a massive new reporting system before signing any new contracts. 

The added steps in the already massive bureaucracy will draw out the lengthy contracting process and new contracts could potentially take three or four years before being awarded. All this will occur at the expense of U.S. businesses and taxpayers, despite the fact that the private sector has repeatedly demonstrated it can perform these functions for the government faster, better and cheaper.      

ACTION NEEDED: Your help is needed to stop this unnecessary legislation from being considered by Congress. Contact your Representative and urge him or her NOT to cosponsor H.R. 721.  

Call your Representative using the GAIN Legislative Hotline, 1-888-832-GAIN (4246). 

If your Representative has already cosponsored this legislation, please ask him/her to withdraw their name. You may visit the Privatization and Procurement section of the Issue Index on www.uschamber.com, under Political Advocacy, or call Stefanie Starkey at 202-463-5693 to find out if your Member is a cosponsor. A companion bill may be introduced in the Senate very soon. We will keep you apprised of any developments regarding this or any legislation that will have an adverse impact on federal contracting opportunities for business. 

For more information, or if you have any questions, please contact Stefanie Starkey at (202) 463-5693 or sstarkey@uschamber.com.