Potential New Federal Rules for Contractors Doing Business with the U.S. Government Spark Controversy
According to a number of early February 2010 news reports, the Obama Administration is considering new wages and benefits rules that would affect contractors’ opportunities to receive federal contracts.
“Positive weight in the source selection process is given to bidders based on the labor standards of their entire workforce,” states an administration document.
The standards would be measured by “whether the bidder pays a livable wage and provides quality, affordable health insurance; an employer-funded retirement plan; and paid sick days.”
Some have named this the “High Road Contracting Policy,” and claim it “will improve the service that the government receives and save taxpayer dollars because better wages will lead to higher productivity and product quality.”
Contractors would be required to adhere to wage standards greater than the current law. Supporters state that American workers (approximately two million worked on federal contracts in 2006) will experience an increase in the quality of their jobs. Read the rest of this entry

