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Statement by AIA President and CEO John W. Douglass on the Administration's Repeal of the "Blacklisting" Rule

WASHINGTON, D.C., January 3 - The aerospace industry welcomes the move of the Federal Acquisition Regulations (FAR) Council on December 27 to revoke the Contractor Responsibility ("blacklisting") rule. Issued by the Clinton administration in December 2000, the rule required contracting officers to make judgements about contractor responsibility in areas of the law for which they lacked qualifications and clear guidance. The rule was stayed by the Bush administration on April 3, 2001, and was turned over to the FAR Council for analysis and public comment.

AIA, along with representatives from other industries, submitted comments and testified in opposition to the rule, saying that it lacked sufficient definition and allowed contracts to be withheld without due process. AIA presented evidence that this rule would have worked against the government's own attempts to reform and streamline the acquisition process and its attempt to attract more commercial firms to the defense and space marketplace. The aerospace industry also opposed the rule because it was inconsistent with the government's long-standing policy of neutrality with respect to employer-employee labor dispute and it penalized settlements of administrative or judicial action brought by the government.

AIA is extremely pleased that the Bush administration revoked the onerous blacklisting rule. If allowed to stand, it would have cost the government millions of dollars in litigation costs and interrupted the processing of contracts vital to ongoing war efforts.

P.A. Rel 2002-02

01.03.02

-AIA-

Contact: Matt Grimison, AIA
(202) 371-8548
matt.grimison@aia-aerospace.org