Elaine Parker: “This rule would likely price many small businesses out of federal contracts altogether”
According to JCNF, the proposed rule exceeds the statutory authority of the FAR Council under the Procurement Act. In addition, JCNF says, it violates the First Amendment rights of federal contractors and unlawfully requires private entities to comply with the Paris Climate Agreement, which is not law in the United States and has never even been ratified by the U.S. Senate.
“This regulation would impose a significant burden on small and medium-sized businesses that perform services for the federal government, putting them at a significant disadvantage compared to larger competitors,” said Karen Harned, Chief Legal Officer for the JCNF Legal Action Fund. “It would also effectively serve as a ‘social license to operate,’ forcing private companies to implement the Biden administration’s political agenda.”
The FAR Council estimates that compliance with the proposed regulation will cost about $4 billion over the next 10 years, but JCNF contends that inflation and other necessary expenses will likely result in much higher costs.
“With prices going up across the board, the number of federal contractors who are classified as ‘significant’ ($7.5 million in contracts) is due to rise sharply in the near future,” said JCNF President Elaine Parker. “This rule would likely price many small businesses out of federal contracts altogether, a potentially devastating blow.”
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Job Creators Network Foundation (JCNF) is an organization founded by entrepreneurs who believe the best defense against bad government policies is a well-informed America. To learn more, please visit www.jcnf.org/about.
Boyden Gray & Associates is a premier law and strategy firm in Washington, D.C. To learn more, please visit www.boydengrayassociates.com.