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                         May 3, 2002

Lawmaker contests award to contractor

WASHINGTON (FEDWEEK) -- After winning a lengthy battle for 200 jobs at an Army base in Hawaii, a contractor faces a new challenge from a lawmaker who contends Defense Department jobs cannot be outsourced during wartime.

A U.S. Army Pacific appeals board April 22 upheld a decision by commanders at Schofield Barracks, Hawaii, to transfer some of its logistics functions to BAE Systems.

The appeals board decision spurred Rep. Neil Abercrombie, D-Hawaii, to declare that the war on terrorism triggers a federal law suspending the outsourcing process during wartime.

"The war on terrorism certainly constitutes a war or national emergency, and the law clearly suspends the A-76 process in times like these," Abercrombie said in a statement. A-76 refers to Office of Management and Budget Circular A-76, which is the federal rulebook for how to hold competitions between contractors and federal employees to decide who performs federal services work.

"The Army should put a hold on the . . . contract, and this hold should apply throughout the Department of Defense."

The competition in Hawaii has been a four-year ordeal for Farnborough, U.K.-based BAE and the employees at the Army command’s logistics directorate. The competition the appeals board ruled on was the second between the firm and federal workers.

BAE won the first decision in October 2000. Federal workers appealed that ruling and were awarded the work.

However, BAE protested the reversal and the General Accounting Office last May determined that the request for bids was not clear. GAO recommended the Army revise its requirements and start the competition over. When BAE won that award, the in-house workers appealed to the administrative appeals board.

The Army command did not say how many workers were being displaced, but that job-placement services, separation incentives and other assistance were being provided.

"This . . . process has been extremely stressful on the [logistics directorate] work force," said Col. William Puttmann Jr., the garrison commander, in a statement.

Abercrombie also blasted the appeals process, which bars federal workers from protesting decisions to GAO. "The contractor can appeal a decision in favor of employees, but employees can’t appeal a decision in favor of the contractor," he said.