Critics hit latest bill to promote govt. contracts

Congress is closing in on legislation that could make it easier for Federal agencies to replace government-run employee cafeterias with facilities operated by outside contractors.

The bill would abandon the current Office of Management and Budget Circular A-76 Cost Comparison requirement—a process that critics say makes it too difficult for private sector firms to compete for Federal contracts.

Favors contractors: But opponents of legislation contend that the measure would tilt the playing field too far in favor of private contractors, and result in the replacement of thousands of government employees with "poorly paid contingent workers."

A key problem with the bill, according to Rep. Bruce F. Vento (D-MN), is that it would "allow contractors to protest agencies' decisions to keep work in-house," and even challenge those decisions in Federal claims court.

Long-term view: Vento also contends that once a government foodservice operation or other Federally-operated activity is turned over to a private contractor, it is likely to remain as a privately-run facility even if the contractor subsequently raises rates—curbing competition from in-house sources.