January 18, 1999
Director
Office of Regulations Management (O2D)
Department of Veterans Affairs
Vermont Avenue, NW Room 1154
Washington, DC 20420
RE: RIN2900-AI71
Dear Director:
This concerns the proposed rule Veterans Affairs Acquisition Regulations: Simplified Acquisition Procedures for Health Case Resources, published in the Federal Register on November 9, 1998.
The Office of Advocacy has previously expressed its views on rules that will alter the process of "full and open competition" in government contracting. It would be myopic to sacrifice competition at the expense of creating false efficiencies and short-term savings. Only market-based competition can prevent monopoly practices and the concentration of federal dollars in the hands of a few large industry giants.
It is easy and arguably more efficient in the short term for the government to contract with a cadre of mostly large firms. In the process, however, the role of many small firms, the entrepreneurial base of the economy and the future of competition are jeopardized.
The proposed rule limits competition, provides the contracting officer with virtual unilateral authority to accept proposals, even when they are submitted after the closing date and many other such non competitive changes. These proposed rules would result in a decrease of awards to small businesses. Notwithstanding, the Secretary has certified without proper documentation that the proposed rule would not have a significant economic impact on a substantial number of small entities. Thus, if the Secretary attempts to exempt certification from the Regulatory Flexibility Act at a minimum the broad breath of the proposed rule change should necessitate an initial regulatory flexibility analysis.
Enclosed for your review is the guideline on the Regulatory Flexibility Act. The Office of Advocacy considers the Department certification to be in clear violation of the law. We are available to meet and discuss these issues with you, please feel free to contact Major Clark, III our Assistant Advocate at (202) 205-6532.
Thank you for your consideration to this matter.
Sincerely,
Jere W. Glover
Chief Counsel for Advocacy
Enclosure a/s