Wyden-Dorgan CM/PM Language Weakened in Final FY2005 DOD Authorization Bill

The FY2005 Department of Defense (DOD) Authorization conference report that passed Congress October 9 included a significantly weakened version of the Wyden-Dorgan program management amendment that was included in the Senate version of the bill.  The original amendment, which CMAA strongly opposed, would have hampered the DOD’s ability to utilize the expertise and experience of program/project management firms on construction projects in Iraq and on future projects under the DOD’s jurisdiction.  The intent of the original amendment, offered by Senator Ron Wyden (D-OR) and Senator Byron Dorgan (D-ND), was to classify program management support contracts as “inherently governmental functions,” prohibit such contracts if the contractor had even the “appearance” of a conflict of interest, and require additional reviews of any task or delivery orders associated with such a contract and further reviews of any new or extended contracts for program management or oversight contracts related to the reconstruction of Iraq.

During conference committee negotiations between the House and Senate, the original amendment language was changed by removing all references to Iraq, eliminating the reference to the “appearance” of an organizational conflict of interest, and making the amendment applicable only to contracts entered into on or after the effective date of the legislation and not to extended contracts or task or delivery orders.  The final conference report language is consistent with current federal regulations and only requires the contracting officer to ensure that certain conditions are met with regard to DOD contracts for the “performance of acquisition functions closely associated with inherently governmental functions.”