Kerry amendment: TSA must comply with federal contracting laws

Kerry Measure Adds Accountability to TSA Contracting

1 hour, 23 minutes ago

To: National and Business Desks, Transportation Reporter

Contact: Kathryn Seck, 202-224-9431, for Sen. Kerry, or Alex Formuzis, 202-224-7340, for Sen. Lautenberg

WASHINGTON, July 12 /U.S. Newswire/ -- Sen.
John Kerry (D- Mass.) secured an amendment to the
Homeland Security Appropriations Bill today that will repeal the Transportation Security Administration's (TSA) exemption from federal contracting laws. The provision, cosponsored by Sens. Olympia J. Snowe (R-Maine) and Frank Lautenberg (D-N.J.), adds increased transparency and accountability while also helping to level the playing field for smaller firms who want to compete for contracts.

"America's safety and security has to be the number one priority. TSA has a long record of contract mismanagement, and they should no longer receive special treatment. Our safety and security are in their hands," said Kerry. "Washington shouldn't be fleecing American citizens to protect them. We need to put an end to multi-billion dollar no-bid contracts. My amendment will hold TSA to the same rules as every other federal agency and increase contracting opportunities for small businesses."

"The
Department of Defense isn't exempt from contracting laws, and the TSA shouldn't be, either. The TSA can protect travelers without wasting tax dollars," said Sen. Lautenberg.

Nearly every other federal agency, including the Department of Defense, must abide by the Federal Acquisition Regulation (FAR), which includes the Competition in Contracting Act and the Small Business Act. Because of the urgent need for airport screening equipment in the aftermath of 9/11, the TSA was exempted from these regulations.

Yet over the last five years, TSA's contracting record has been harshly criticized by the agency's inspector general and the General Accountability Office -- giving no justification for a permanent exemption from the FAR.

For instance, in 2003 Boeing received $82 million to cover $39 million in costs -- a 210 percent return -- for its "cost-plus-a- percentage" contract that it awarded in violation of federal law. In 2002, a contract awarded outside the normal process tripled to $3 billion after a computer networking company failed to complete the task and over-billed the government for 117,000 man hours. The TSA also allowed one contract to expand from $104 million to $741 million because they insisted on recruiting airport screeners in lavish hotels like the Waldorf-Astoria.

The Kerry-Snowe-Lautenberg amendment strikes the section of the U.S. Code that currently exempts TSA from the FAR and requires the agency to comply within 180 days.

http://news.yahoo.com/s/usnw/20060712/pl_usnw/kerry_measure_adds_accountability_to_tsa_contracting144_xml

US Army to end contract with Halliburton: report

Wed Jul 12, 12:02 PM ET

WASHINGTON (AFP) - The US Army reportedly will not renew its contract with Halliburton, the oil service giant formerly run by Vice President
Dick Cheney.

Army spokesman Randy King told The Washington Post Halliburton had done "an outstanding job," as the chief defense contractor in
Iraq but
Pentagon chiefs had decided they did not want "all our eggs in one basket."

He said the Texas-based, the US military's biggest contractor in Iraq, would be replaced when its contract comes up for renewal at the end of September.

After that the work will be split among three companies with a fourth firm hired to oversee the work of the other three.

http://news.yahoo.com/s/afp/20060712/ts_alt_afp/usiraqmilitary_060712160219