Procurement provision in hurricane aid bill raises eyebrows

[The Straight Story]

Procurement provision in hurricane aid bill raises eyebrows

By Amelia Gruber
[e-mail]
The Office of Management and Budget is working to address concerns that a dramatic increase in the threshold for government credit card purchases, approved Thursday as part of Congress' $51.8 billion hurricane aid package, could spawn waste and abuse.

A provision in the emergency assistance bill (H.R. 3673) boosts the limit for emergency micropurchases from $15,000 to $250,000. Most micropurchases are made using government-issued credit cards and aren't subject to the competition requirements typically accompanying larger buys.

OMB's Office of Federal Procurement Policy, along with the General Services Administration, will issue guidance "shortly to address concerns that federal employees may misuse these flexibilities," said David Safavian, the OFPP administrator. The guidance may require senior contracting officers to sign off on any purchases of more than $50,000, according to a spokesman for Sen. Susan Collins, R-Maine.

Such a requirement would satisfy Collins, chairwoman of the Senate Homeland Security and Government Affairs Committee, the spokesman said. Collins, ranking member Sen. Joseph Lieberman, D-Conn., and Sen. Charles Grassley, R-Iowa, chairman of the Finance Committee, on Thursday sent a letter to colleagues seeking a "more reasonable limit, perhaps $50,000."

http://www.govexec.com/story_page.cfm?articleid=32212&dcn=todaysnews

[The Magistrate]

1. It Ought To Raise Eyebrows, Sir

It is a provision so conducive to boodling schemes as to practically enable a defense of entrapment for those caught availing themselves of the opportunity proffered....

[Joebert]

2. I'm sure there will be oversight to protect from them buying cars.

I used to work at a computer store that was located very near a National Lab. Each employee apparently had some sort of per diem that allowed them to spend, unquestioned, up to $100.00 a day. They just showed their badge, and we handed over the merchandise and the receipt.

We'd have people asking us if we could sell them a computer $100.00 at a time, or just fill out 5 forms in a row.

This stuff isn't watched closely enough.