House may keep DOD sourcing requirements

House appropriators want the next Defense Department budget bill to continue requirements for competitive sourcing at the department.

The House Appropriations Committee's fiscal 2006 DOD spending bill would require private contractors to provide health insurance for their employees comparable to existing health coverage for civilian DOD employees. The exact language was included in the fiscal 2005 Defense appropriations bill that Bush signed into law.

White House officials responded today with a policy statement "strongly" objecting to the measure.

"While well intentioned, this provision ultimately undermines the efficiencies in private health plans and provides another disincentive for the private sector to participate in DOD's competitions," according to the statement.

The bill is scheduled for full House consideration today, with voting expected to continue into the night. The bill was approved by the House Appropriations Committee June 7. The Senate Defense Appropriations Subcommittee has yet to markup its version.

About the Author

David Perera is a special contributor to Defense Systems.

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