Friday, January 04, 2008

The growing controversy over federal contracting

Clinton cries foul over award fees
Clinton asked the Homeland Security Department’s inspector general to evaluate incentive bonuses and award fees DHS paid to contractors to determine whether those payments are being properly managed. She would also like to tie award fees more closely to contractor performance governmentwide and recently helped insert an amendment into the fiscal 2008 Defense Appropriations bill that seeks to achieve that goal.

“The issue will probably get greater attention because of who Hillary Clinton is,” said Alan Chvotkin, senior vice president and counsel at the Professional Services Council, a trade association for government contractors. “She is asking the right questions, and it is fair game.” ...

... With Clinton leading the charge, other federal contractors are bracing for increased scrutiny and possible legislative action to curb abuses of such fees.

“There is huge grade inflation,” said Scott Amey, general counsel at the Project on Government Oversight, a watchdog group. “The government takes these tasks lightly.”

Now is the time for government contractors to get in front of this controversy.

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