Tuesday, November 11, 2008 12:00 PM

Government Contractors Expect More Scrutiny

By ELIZABETH NEWELL

President-elect Barack Obama's campaign discussion of transparency and ethics has led the contracting community to expect that his administration will put a greater focus on doing business with firms that are good corporate citizens.

This might mean that in some cases, the administration will look at behavior peripheral to the project at hand, such as compliance with federal tax and environmental law and equal employment opportunity regulations, said Larry Allen, president of the Coalition for Government Procurement.

Contractor oversight has been extensive during the past two years, with both Senate and House committees holding numerous hearings to grill administration officials and private sector executives on high-profile instances of procurement waste, fraud and abuse. Lawmakers passed sweeping contracting reforms, independently and as part of authorization bills, despite concerns voiced by industry.

In addition, the contracting community is eagerly watching the presidential and congressional transitions in hopes that new leaders will appoint experienced and competent procurement professionals and create a more collaborative environment.

While Obama laid out a number of acquisition-related positions on the campaign trail, contracting leaders say his choice of an acquisition team will be the first real indication of his dedication to contracting management.

Allen noted that there are a number of procurement specialists with Democratic bona fides, extensive experience and common sense.

"It would be good to see those people put forth for key positions, because that would be an indication that the new administration understands the need to manage effectively," Allen said. "On the other hand, if the names that are picked are not broadly known and not from in the community that would be a concern, potentially."

Stan Soloway, president of the Professional Services Counsel, said an effective relationship with talented acquisition leaders would help make the government a smarter customer.

"People complain about the kind of 'gotcha' environment on the Hill, but with some exceptions there has not been the strongest acquisition leadership across government," Soloway said. "The signal is sent from [appointees] and how they approach both their workforce and the challenges they face."