Federal Manager's Daily Report

The White House has stated its opposition to a provision

in the fiscal 2006 Transportation, Treasury, Judiciary,

HUD and related agencies appropriations bill, that would

require all but the smallest public-private competitions

be decided solely on the basis of lowest cost.

It said such a rule would marginalize the consideration

for quality and weaken the competitive sourcing initiative

of the president’s management agenda as a management tool.

Specifically, it said it would oppose any effort to reverse

already completed competitions, such as the Federal Aviations

Administration’s award of a $1.9 billion flight services

contract to Lockheed Martin. “If the final version of the

bill contains a provision to prohibit implementation of the

FAA competition of flight service station operations, the

President’s senior advisors would recommend he veto the

bill,” according to a White House policy statement.

The House version of the measure would effectively undo

the contract award, while a Senate amendment would allow

displaced employees who were within two years of retirement

eligibility to remain as temporary federal workers until

reaching eligibility.

The administration also objected to procedural details of

the provision – section 843 – that it says “undermine efforts

to eliminate redundant technology investments made by

individual agencies to support the performance of common

commercial functions, such as accounting services.”

The White House also complained that the bill only provides

$8 million for information security for the Federal

Aviation Administration – $4 million below the program’s

required funding level.