The Clinton administration issued a final rule that would bar companies with poor labor records from contracting with the federal government. In addition, companies contracting with the government would also have to have a satisfactory record of compliance with tax, environmental, antitrust and consumer protection laws. Business groups vehemently object to the rule and promise to challenge it in court. It is designed to punish companies that violate federal procurement laws and other statutes. According to the General Accounting Office, in a recent 4-year period the government contracted with more than 100 companies that violated procurement laws alone.
Business groups complain the rule is too vague.
Both business groups plan to sue to stop the regulation. The final rule was issued by the Federal Acquisition Regulatory Council. It appeared in the December 20 Federal Register. The rule is scheduled to go into effect Jan. 19, 2001. By law, the government must set-aside specific projects for small business suppliers, and the advice in Win Government Contracts for Your Small Business will make the government your best customer.