SUBJECT: DoD Authorization Legislation

DATE: June 15, 1999

Both the House and the Senate have now completed their work on the FY2000 Defense Authorization Act. As the legislation was being considered on the floors of the House and Senate, the Department of Defense was active and somewhat successful in having language inserted in the bill that could have a devastating impact on our members. We must act immediately to contact members of Congress about the effects that DoD provisions could have on the military household goods moving industry.

WHAT IS IN THE DOD AUTHORIZATION BILL

Section 805, as passed by the Senate is very damaging to the small businesses of our industry and numerous other impacted industries. Section 805 allows DoD the ability to procure up to $5 million of a variety of services, including moving services, with just three phone calls. DoD does not have to take competition into consideration nor does it have to consider small business concerns including set asides, minority business interests or bundling issues.

Section 805 disregards the general authority outlined in the Office of Federal Procurement Policy Act. This Act creates established guidelines for test pilot programs. It also allows for public comments and participation in the development of a test program. The OFPP act also requires some consideration for small business and competition.

Section 805 establishes yet another pilot program - making a total of four pilot programs for the moving industry with no real tangible results from any of them. The results we do have, which are from Hunter, show that there is a substantial increase in cost, no real improvement in claims and a reduction in the participation of small business. We have no results, no checks and balances and no central clearinghouse monitoring these pilots. To allow yet another pilot to run 5 years and to allow DoD, with three phone calls, to procure up to $5 million worth of services, is an irresponsible use of taxpayers' funds.

Section 805 was inserted into the DoD legislation without hearings, public discussion or an evaluation of what this would do to the impacted industries or its many small businesses. It is in the Senate version of the bill, but not in the House version of the bill. It is critical that it not be included in any final conference bill.

WHAT YOU MUST DO

We know that you are in the heart of the busiest time of the year. However, we have only days in which to convince Congress that Section 805 is incredibly harmful to your small business and thousands of others like yours. Please help us by doing the following:

  1. Listed on the attached page are the Members of Congress who will be conferees on the DOD Authorization bill. You must contact them immediately and demand that Section 805 that is in the Senate version of the bill not be adopted in the conference committee.

  2. Emphasize that the Section 805 provision will impact small and minority businesses in over 40 different industries. All of these companies could be eliminated because DOD can bundle these contracts and not be subject to any competitive bidding.

  3. State that another pilot project for the moving industry is irresponsible until Congress and the DoD has a chance to assess the costs and value of the pilot programs that are currently in progress.


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