Arrest of Procurement Policy Chief Could Undercut Contracting-Out Agenda

By Stephen Barr

Friday, September 30, 2005; Page B02

 The arrest of the Bush administration's procurement policy chief has rocked
the federal contracting community and raised questions about whether the
White House can quickly recruit a replacement and maintain its "competitive
sourcing" initiative.

*David H. Safavian* , 38, administrator of the federal procurement office at
the Office of Management and Budget, was arrested Sept. 19 after the FBI
filed a complaint accusing him of lying and obstructing a criminal
investigation into the dealings of a Washington lobbyist. Safavian's
attorney has said he will vigorously contest the charges.

The White House has started a search to find a replacement for Safavian, who
has resigned. In the interim, *Robert A. Burton* , a career OMB official, is
managing the office.

*Alex Conant* , an OMB spokesman, said Safavian's departure "will not impact
OMB's competitive sourcing initiatives. Our priorities are the same now as
they were two weeks ago."

But officials elsewhere in the administration predicted that Safavian's
arrest would undercut OMB's contracting-out agenda, known as A-76, and make
it easier for Bush critics to score points on Capitol Hill.

This week, Rep. *Chris Van Hollen* (D-Md.), who has sponsored annual
amendments to force a rewrite of the administration's A-76 rules, called on
the Government Accountability Office to probe the awarding of no-bid
contracts for hurricane relief and recovery. He cited Safavian's arrest and
asked for an investigation "of all the matters where Mr. Safavian became
directly or indirectly involved."

The American Federation of Government Employees, which has lobbied against
the competitive sourcing agenda because it threatens federal jobs, has
stepped up its campaign and accused OMB of unwarranted intervention in
contracting decisions at two agencies.

*John Gage* , the union president, said the arrest "provides this
administration with an opportunity to rethink its misguided wholesale
privatization policy."

Conant said OMB "routinely works with agencies to make competitive sourcing
successful. By working with agencies receiving bids, OMB helps save taxpayer
dollars and improve results."

The competitive sourcing initiative has proved controversial since its
launch in 2001. OMB estimated last year that the project would create
savings of $1.4 billion over five years, but AFGE argues that the savings
are illusory.

Safavian's arrest represents another blow to the federal contracting
community, which saw *Darleen A. Druyun* , a former top Air Force
acquisition official, testify in court that she had favored Boeing Co. in
contract decisions. Questions also have been raised about the management of
contracts at the General Services Administration, Defense Department and
Department of Homeland Security over the last two years.

"Obviously, it is dispiriting for the [OMB] staff . . . and the much harder
issue is that it is dispiriting for the acquisition community," said *Steven
L. Schooner* , a George Washington University professor.

Schooner said he sees the federal acquisition workforce as "tired and
overworked" and buffeted by contracting controversies in Iraq and with
Hurricane Katrina. "Safavian was supposed to be the point person on making
Katrina go well," Schooner said. "I think it is a dark moment."
http://www.washingtonpost.com/wp-dyn/content/article/2005/09/29/AR2005092902678.html?referrer=email

--
In the long run we are all dead. - John Maynard Keynes


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