Opposition to Senate bill increases

The Professional Services Council opposes a Senate proposal that would force contractors to offer subcontractor services with no price markups. Along with the Information Technology Association of America, the council argues that the proposed amendment to the Defense Authorization bill would be harmful.

“We strongly urge the Senate to reject this amendment and instead rely on ongoing and more appropriate administrative procedures and contract negotiations to improve transparency in the contracting process," said Stan Soloway, PSC president.

Earlier today, ITAA President Harris Miller said that the amendment, proposed by Sen. Carl Levin (D-Mich.) would be a "potential disaster for small and midsize businesses in the federal marketplace."

Soloway said that a measure similar to Levin's proposal is already under discussion due to a potential ambiguity in the Federal Acquisition Regulation. The Defense Contract Audit Agency and the General Services Administration are reviewing the matter, and the FAR Council is reviewing proposed clarifications to FAR, which would provide an opportunity for public comment.

“We strongly encourage the Senate to not preclude the regulatory process from considering the full implications of this important contracting matter,” Soloway said.