Bill Contains Other Restrictions, as Well

The DoD measure also would require that the in-house bid be based on a “most efficient organization” and bars contracting-out unless the projected savings from contractor performance would be at least 10 percent or $10 million. Those provisions would effectively override parts of the revisions the White House made to the general government-wide contracting policy, Circular A-76, two years ago. The administration said it wants to “eliminate DoD-specific restrictions” on contracting. While various restrictions on contracting-out are pending in other spending bills, the DoD measure is particularly important because that department does the large majority of the government’s contracting-out. The measure now goes to a conference with the House, which earlier passed a counterpart containing the same language.