August 17, 1998
The Administration has no objection to those provisions of H.R. 4244
relating to the "Federal Activities Inventory Reform Act of 1998." Those
provisions would reinforce efforts to improve the identification and review
of non-inherently governmental activities. They would also permit agencies
to competitively choose the source -- public or private -- which is most
cost effective and in the best interest of the taxpayer.
The Administration, however, opposes the remainder of H.R. 4244 in its current form. While the Administration shares the goal of ensuring the quality and professionalism of the Government's acquisition workforce and measuring the performance of its procurement operations, the Administration opposes the bill because it would:
The Administration also opposes the provision of H.R. 4244 that would exempt experience-rated contracts awarded under the Federal Employees Health Benefits Program (FEHBP) from the Cost Accounting Standards (CAS). The standards, which are applied to all contractors performing under cost-based pricing arrangements with the Federal Government, ensure that costs are properly measured, assigned, and allocated. In establishing the CAS Board, Congress provided for a formal waiver process for exempting those government contractors whose circumstances are so unique as to make the application of CAS inappropriate.