Contracting, Base Closings, DHS Issues Arise

Several bills that have advanced in Congress triggered conflicts between the Democratic majority and the Bush administration over long-time points of controversy, base closings, the alternative DHS personnel system, and contracting out. A House-passed veterans care bill (HR-1538) would impose a one-year moratorium on new Circular A-76 reviews in DoD military medical facilities, in part a reaction to views that a contracting-out study at the Walter Reed Army medical center in the District of Columbia contributed to the maintenance and management problems there. The bill further would require DoD to submit a report on ongoing public-private competitions in military medical facilities, including the cost of conducting the competition, an evaluation of whether anticipated savings can be achieved and an assessment of the effect on quality of service if the function were to be contracted-out. The White House objected, saying DoD “should retain the full range of management tools to improve services at military medical facilities,” but it didn’t specifically threaten a veto. The language could be the first of many such restrictive provisions on A-76 studies this year.