U.S. Chamber Slams Revised Procurement Rule

WASHINGTON, DC – The United States Chamber of Commerce today criticized a revised federal procurement proposal, saying for business the rule remains arbitrary and ambiguous and calling the revisions minor and insignificant.

"The Administration's blacklisting regulation remains arbitrary and ambiguous," said Randel Johnson, Chamber vice president for labor and employee benefits. "The revised rule continues to lack standards or guidance. And, the Administration's changes are minor and insignificant.

"The Vice President's promise to the AFL-CIO means that the final rule is a foregone conclusion, but the Chamber will do whatever is necessary to block this politically motivated policy, including legal action."

The new rule would effectively "blacklist" companies from eligibility to receive government contracts if they do not have a "satisfactory" record of compliance with employment, tax, anti-trust, environmental or consumer protection laws. But there is no definition of what would be considered "satisfactory," according to the Chamber. Government agents would have virtually unlimited power to decide who can compete for the government's business.

"Even the most well-intentioned business can get caught in the maze of confusing and often conflicting agency rules and regulations," said Johnson. "Ask the Clinton Administration, which has had tens of thousands of charges filed against it."

This regulation remains an end-run around Congress, which has specifically considered and rejected similar legislation, Johnson noted. "Any changes to the laws should receive a full airing by the public and by Congress, rather than through the backdoor of the administration's agencies."

The General Accounting Office estimates that companies with federal contracts and subcontracts employ 23 million American workers. A federal contracting officer's subjective decision to deny a company a federal contract, could put that company and its employees out of business, according to the Chamber, and would hit small businesses especially hard.

The United States Chamber of Commerce is the world's largest business federation, representing more than three million businesses and organizations of every size, sector and region.

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