Service Contracts Threatened
Legislation introduced in the U.S.
moratorium on all federal contracts!
decades, businesses have worked in cooperation with the federal
government to provide efficient and cost effective services for
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
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.
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.
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.
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.
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.
your Representative using the GAIN Legislative Hotline,
your Representative has already cosponsored this legislation, please
ask him/her to withdraw their name. You may visit the
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
more information, or if you have any questions, please contact
Stefanie Starkey at (202)
463-5693 or email@example.com.