Legislators recently removed a key provision in a proposed law that affected contractors competing for government work. 

Let’s hear from our contracting and procurement readers on this one. 

There was some movement to pass legislation that would have eliminated the competitive advantage contractors may receive in soliciting government work due to their lower retirement costs; however, that never came to pass.

This is relevant when it comes to federal agencies “competing,” via OMB’s Circular A-76, with private companies to prove that their government offices can do the job better and cheaper than those on the outside.

If government folks have to include the cost of implicit retirement benefit expenses into their cost formulae and competitors in the private sectors do not, well… you can guess the rest.

How much of a problem is this?  “Forum” readers will benefit from hearing the thoughts of those who have worked in the procurement arena, prepared MEO (Most Efficient Organization) analyses, or understand how these dynamics play out in practical terms.

We await to hear from our resident experts.

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