Short Take – Contractor Groups Cry “Uncle!”
September 8, 2015
By: Eric Whytsell
If you’re feeling overwhelmed by the Obama Administration’s recent string of Executive Orders imposing more and more requirements on you as a government contractor, you’re not alone. Last month, a group of prominent contractor organizations sent a letter to senior White House advisors asking for relief from the seemingly incessant flow of federal contractor-focused executive actions.
Citing rising compliance costs and negative impacts on the procurement system, the presidents of the National Defense Industrial Association (NDIA), the Aerospace Industries Association (AIA), the Professional Services Council (PSC), and the IT Alliance for Public Sector (ITAPS), wrote to White House Chief of Staff Denis McDonough and Senior Advisor Valerie Jarrett requesting that “no further presidential directives primarily focused on government contractors be issued for the foreseeable future.” The letter points out that since 2009 the White House has issued 12 contractor-focused executive orders that have resulted in 16 new regulations and thousands of pages of new requirements to an already complex federal acquisition system. While government contractors – and these four associations -- have supported some of the orders, and suggested changes to make others more workable, the associations point out in their joint letter that “the net effect has been to significantly increase the costs of doing business with the government.” They go on to state, “[t]he impacts, inefficiencies, and in many cases, unintended consequences are such that the interests of the American taxpayer are being significantly and negatively impacted.”
On this, most contractors likely agree. However, it remains to be seen whether the associations’ request will be honored. In the meantime, contractors need to keep on top of the new rules and stay in compliance.
Eric Whytsell in responsible for the contents of this Short Take.
© Jackson Kelly PLLC 2015