Contracting Provisions Draws Threat

In a policy statement regarding the House bill, the administration threatened to veto the Transportation-Treasury bill if it limits the White House’s “competitive sourcing” initiative to consider federal jobs for private sector performance. In addition to the amendment regarding the revised A-76, the bill contains language requiring greater agency reporting on their contracting-out activities–during floor voting the House rejected an amendment that would have imposed even greater restrictions. Also, specific restrictions on contracting-out at certain agencies are contained in other appropriations bills. The administration statement said that “now is the wrong time to short-circuit implementation of this principle, especially since numerous agencies are starting to make real progress in this area. Prohibiting funding for public-private competitions is akin to mandating a monopoly regardless of the impact on services to citizens and the added costs to taxpayers.”