MAINTENANCE CONTRACTS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP83-00156R000200090001-6
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 2
• Document Creation Date: December 15, 2016
• Document Release Date: December 2, 2003
• Sequence Number: 1
• Publication Date: December 17, 1979
• Content Type: FORM

whom. Drays a lino across. columa, c o oath ce.s mono..
am ? along., th s: opportunity
o advise` you `of. a. situation which
roblem =of;:great -..significancevfor' `
this Agency The .Department . of
cabor has,:expanded.:the provisions'.
r: thServi Cra
e -ceontct:. Act - ' (SCA) ' .
to.include maintenance support'
contracts for ADP'equipmento Sev-.'
eral of our contractors (Hewlett-'.
Packard, Honeywell '-IBM)',have
refused to accept contracts because
of. their disagreement with the
Department of Labor?s right to
extend the SCA to ADP maintenance
contracts. Attached hereto is an
article from the Electronic-News
which discusses the issue in some
detail.
There are two approaches which
we are now considering to work the
problem. We have asked the Office
of General Counsel for a legal
opinion: as to whether the special
authorities granted to the DCI
under Section 8 of the CIA Act
would permit us to issue contracts
without the Service Contract Act
provisions notwithstanding the
Department of Labor?s determination
that the SCA does apply. Our .
second approach would be to prepare
a.letter for the DCI?s signature
for issuance to the Department of
Labor in which we would request a
special exemption from the Act. It
is our understanding that NSA has
been able to obtain a waiver for
several of their-contracts.
FORk 11 0 USC -- -
PRE US
1-79 EDITIONS
Approved For Relea-se.2004/05/12 : CIA RDP83-00156R000200090001-6.
 CPYRGHT
7.+` II'- 1J f ~' X11 C O O
t by JACl< ROBERTSON _ _
Out of Service ,:
ASIiINGTON - The Carter Administration is buying major
V
problems for itself by letting the Labor Department run amok with
The White House reportedly intervened to crack Labor's stone wall to get a 6-
month exemption until next March for service support of Data General, Digital
broadside throughout federal procurements - running up costs astronomically.
procurements, to equipment leases - even to individual government-owned
the wage rates of service workers - even if they work on a single piece of
more unsuspecting vendors. Computer and telecommunications' equipment
"
includes the controversial Service Contracts Act. Hewlett-Packard and Digital
Equipment Corp. have been outspoken in their rejections - but other firms are
quietly balling at accepting the Service Act coverage,
Industry refusal to sell Uncle Sam under terms of the Act has mushroomed to
the point that the AFL-CIO publicly blasted such action as "blackmail to
sabotage the law."
Contractor rejections are throwing federal agencies into turmoil.
Agencies with sophisticated computer, instrument and telecommunication
systems installed suddenly face loss of contractor support.Federal users have
2. Even the $2,500 exemption for individual service purchase orders covers
hewer and fewer products. Many sophisticated electronic systems require s,r-
v cc work in excess of the $2,500 exemption - which w.r..s set 14 years ago, aid
snce rendered meaningless by a decade of rampant inflation.
3. The avalanche of individual service purchase orders to escape the Service
Contracts; Act is an obvious circ+univention of the law. Agencies that !!out laws -
even when driven by crisis conditions - risk erosion of respect and intcprity in
.tlie procurement process.
Labor is still considering an urgent Pentagon request to waive the Act for
H.meywell's service contract supporting the crucial WWMCCS (Warld WVid'!
M!:try Cor..rnand and Control System) computers. Hone:?well repor:edl has
b;: iked at accepting uie Service Art coverage in the :Yew support con ract - and
time is too short to bring in a new support contractor or arrange to perform the
To get equipment serviced at all, many agencies now are forced to writ e in-
dividual time ?aad-nc aerials purchase orders for support of ach product since
TRADITIONALLY products are serviced under omnibus annual 1rstallatirn-
.t ide service contracts, or under GSA schedule contracts. under vr,:rranty, or
s. mply returned to vendor service centers. The spiraling paperwork asie - at a
time President Carter has pledged greater government efficiency - seems to
Labor build its own Sendce
in
one conceivable benefit: hel
have
onl
g
p
.
y
to refuse any federal award that- .
CONTitACTOIt5 by the droves are starting
Contracts Art empire.