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TRAC ACT NEITHER 'TRUTHFUL' NOR 'RESPONSIBLE'

Feb. 23, 2001, ARLINGTON, VA -- Calling it a “piece of legislation that claims to seek truth and responsibility but does neither,” Stan Soloway, president of the Professional Services Council, today sharply criticized the Truthfulness, Accountability and Responsibility in Contracting (TRAC) Act, which Rep. Albert Wynn (D-Md.) introduced Feb. 14.

The legislation, a companion to a similar bill Rep. Wynn introduced during the 106th Congress, would effectively halt all new outsourcing by the government and potentially terminate existing contracts.

“A bill’s title often has little relationship to its actual impact,” Soloway said. “This bill, if passed, would create amanagement and operational disaster of sizable proportions for the government, and its cost to the American taxpayer will be in the hundreds of millions of dollars. Moreover, it creates seemingly endless barriers to smart decision-making and effective management.”

“Virtually every study of outsourcing, including those by the General Accounting Office, Congressional Budget Office and others, concludes that outsourcing, and the competition it engenders, saves money,” Soloway continued. “Therefore, there is no reason or justification for legislation that would effectively kill competition and outsourcing. Answers can be obtained to questions about precisely how much money is saved through the process. But to simply stop all outsourcing is irresponsible and will significantly inhibit the government’s ability to meet its missions and to access and integrate the tremendous technological and other innovations that drive performance in the private sector. The bill is a real disservice to the American taxpayer.”

The previous version of the TRAC Act died during the last Congress but prompted legislation requiring the General Accounting Office to create a national panel to study the issues associated with commercial activities and outsourcing. “Congress charged the GAO panel with objectively and constructively reviewing this issue,” Soloway concluded. “This review is both timely and critically important. To act in advance of the panel’s formation and important work not only is precipitous, but also contrary to the spirit of Congress’s own direction to GAO. Hopefully cooler heads will prevail.”



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