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CVOBlog: 'High Road' policy headed in wrong direction to benefit small businesses

Sunday, August 22, 2010   (0 Comments)
Posted by: Chief Visionary Blog (
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Supporters Purport 'High Road' Contracting Policy Will Improve Federal Contracting, Save Money for Taxpayers and Help Small Business. (Hmmm!)

Okay, we've been through this before, but for everyone that missed it, here's the scenario.

A D.C. based think tank headed by a former White House official proposes to include in federal contracting evaluation criteria, a policy that gives preference to federal contractors with the best employee salary packages and benefit structures, and the idea has traction with the current Administration and unions.

Small Businesses in the lower tiers of the NAICS Code size standards (especially those standards measured by revenues) and pretty much every mid-tier company should be very afraid of this policy coming into fruition.

Earlier this year, GovExec reporter Rob Brodsky's article Proposed benefit for certain contractors draws fire started with "A panel of federal acquisition experts on Thursday panned a plan reportedly under consideration by the Obama administration that would give a leg up in the bidding process to contractors who pay their employees higher wages and benefits, suggesting that the proposal would make the procurement system more costly and inefficient."

Another industry article cites "...positive weight in the source selection process would be given to bidders based on the labor standards for their workforce. The criteria would include whether the bidder pays a livable wage, provides "quality, affordable health insurance," an employer-funded retirement plan and paid sick leave."

Can you sense the agenda here? Those companies who have not been severely hurt by the current economic downturn and can afford the skyrocketing cost of employee medical coverages will enjoy life under this plan.

 It all comes down to who can spend the most money, again.

It's sort of like when a bigger company can outspend another company in the area of marketing or lobbying activities.

You see, this is the "best value" for which the American Worker Project at the Center for American Progress Action Fund is pushing so hard as described in their August 20, 2010 article "High-Road Government: A Contracting Policy that Helps Workers, Taxpayers and Businesses."

So, I guess the plan is to implement senseless policies like this which squeeze the life out of the small business community by completely closing entry to the federal marketplace to new small businesses.

Wonder how much the American Worker Project's corporate sponsors will benefit from this policy?

Hopefully, this ill-conceived plan will get lost in traffic.


Guy Timberlake
Chief Visionary and CEO

"The person who says it cannot be done
should not interrupt the person doing it."

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