Contractors Object to Parts of Defense Authorization Bills
June 14, 2012
Both the House and Senate versions of the fiscal 2013 National Defense Authorization Act contain contracting provisions that are out of synch with competitive market forces, according to leaders of the Professional Services Council, a contractor trade group.
Objectionable provisions include those affecting executive pay reimbursements, efforts to steer more work to small businesses and efforts to reduce contract bundling, the leaders said in a Thursday conference call with reporters.
The House bill (H.R. 4310) passed the full chamber on May 18, and the Senate version, S. 3254, cleared the Armed Services Committee on June 4.
A provision in the Senate bill to cap the reimbursement for contractor executive salaries at $237,000, the salary of the vice president, "is misguided and inappropriate," said Stan Soloway, PSC's president and chief executive officer. "$237,000 is adequate for the majority of employees, but the human capital markets show a shortage of technical skills the higher up you go." Putting "arbitrary limits on what you can pay puts a yoke on companies' ability to attract talent, and the private sector is conduit of talent to the government," he said.