DEFENSE CONSULTANT REFORM ACT OF 1988, H.R. 5016 AND REGISTRATION OF CONSULTANTS AMENDMENT TO SENATE DOD APPROPRIATIONS BILL, H.R. 4781

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90M00005R000200070030-5
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 8
• Document Creation Date: December 27, 2016
• Document Release Date: August 21, 2012
• Sequence Number: 30
• Publication Date: August 16, 1988
• Content Type: MEMO

:STAT
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//?/'r --1'"
16 August 1988
OCA 2771-88
STAT
STAT
STAT
MEMORANDUM FOR: C/L&PD/OGC
PMS/OL (Attn:
FROM: (Legislation Division
of Congressional Affairs
H.R. 5016
it
n
sultant Reform Act of 1988,
nd Registration of Consultants
to Senate DOD Appropriations Bill,
1. By memorandum dated 8 August 1988,1 (pointed
out several problems with H.R. 5016, the Defense Consultant
Reforn, Act of 1968. These concerns relate to information
required when consultants register with the Department of
Defense. Senator Pryor later introduced a similar amendment to
the Department of Defense Authorization Bill, which was
passed. Attached are copies of H.R. 5016 and the Pryor
amendment. I have drafted the following language for the House
bill to protect the Agency's interests:
(h) NONDISCLOSURE OF CLASSIFIED INFORMATION. -- This
section shall not apply to the disclosure of information
concerning a contract, including the parties, when either
the subject matter of the contract, or the fact of the
contractual relationship between the consultant and any
other person for whom he performs consulting services, is
classified pursuant to Executive Order 12356 and its
successor orders or is otherwise protected from
unauthorized disclosure by statute.
STAT
STAT
2. Section (f)(1) of the amendment to H.R. 4781 contains
an exception for a contract which involves "sensitive foreign
intelligence or foreign counterintelligence activities."
Please advise me as to whether this exception is adequate and,
if so, whether it should be used in lieu of the draft language
provided above. You may contact me on wit} your
comments. /
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STAT
SUBJDCr: Mena for C/L&PLD/OGC and PMS/OL (Attn
STAT
Defense Consultant Reform Act of 1988, H.R. 5016 and
Registration of Consultants Amendment to Senate DoD
Appropriations Bill, H.R. 4781
OCA/ U :bsb I 116 Aug 88
Distribution:
Orig - addressee(s)
1 - D/OCA (w/att.)
1 - DD/LM
STAT 1 - SA/OCA (w/att.)
1 - OCA Records (w/att.)
1 - R'. I Chrono (w/o att.)
1 - OCA/LB3 Subj. File (Procurement/Small Business)(w/att.)
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House Modifies, Passes Base-Closing Bill
The House July 12 passed a bill designed to ease
the process of closing outdated, unneeded military
bases, with little congressional say over which facilities
would be shut down.
By a 223-186 vote, the lawmakers agreed to a sub-
stitute amendment by Dick Armey, R-Texas, the mea-
sure's sponsor. (Vote 223, p. 1996)
The amendment replaced the entire text of the bill
(HR 4481), which had been reported by four committees
- Armed Services. Government Operations, Merchant
Marine and Rules. Final passage was by voice vote.
Armey characterized his substitute as a "clean base-
closing bill" and argued that the bill as reported by the
committees had been radically changed from his original
version introduced in April. (Weekly Report p. 1909;'
Les Aspin. D-Wis., chairman of the House Armed
Services Committee, who had managed the version re-
ported by the Rules Committee. said after the vote that
he was happy to have any version passed.
Proponents of the measure said closing outmoded
bases would save the Defense Department between $2
billion and $5 billion annually.
Contending that the current system for closing mili-
tary bases was too political for Congress to handle.
Armey recommended in his bill that a base-closing com-
mission decide which facilities to shut down. That part
of his proposal won agreement from all the committees.
And in all versions of the measure, neither the adminis-
tration nor Congress could change the commission's list
of bases targeted to be shut down.
But in his original measure, Armey did not require
congressional review of the commission's recommenda-
tions. The committee versions would have given Con-
gress a say; some versions required approval, others
allowed disapproval.
wait at least two years after they leave
the government before taking jobs with
firms with which they had negotiated.
Bennett also has introducP,-
_?Q1L_r.equiring all consulting firms
hired by the Pentagon to disclose their
other clients and barring the employ-
ment of any consultant with a conflict
of interest.
While decrying the current lack of
financial disclosure by Pentagon con-
sultants. Sen. Carl Levin, D-Mich..
has taken a different tack. Testifying
before a Senate Government Affairs
subcommittee July 8. he argued that
at a minimum, the Defense Depart-
ment should require consulting firms.
under existing regulations, to file fi-
nancial-disclosure forms and should
establish conflict-of-interest rules for
such companies.. "There are times
when you knowingly will want to hire
somebody as a consultant who has
other private interests." Levin said.
Armey compromised in his substitute by allowing
Congress to vote to disapprove the list of bases targeted
for closure.
And he also agreed to a partial waiver of certain
environmental regulations that had been used in the
past to block the closure of bases. His original bill had
waived completely the requirement for such environ-
mental-impact studies.
These two changes made his substitute language
closer to the committee version as amended during the
two days of House debate.
It also brought the measure closer to a base-closing
provision approved by the Senate on its defense authori-
zation bill (S 23.55). (Weekly Report p. 1361,
But Armey's substitute also did away with certain
provisions of the committee-approved bill. The Armey
substitute. for example, would not require that certain
overseas bases be considered for closure.
It also would not specify that a socioeconomic study
on the loss of jobs and revenue to the local community bc-
conducted for each base on the closure list or require the
commission to hold public hearings on the list.
The Armey substitute would authorize ne' appro-
priations of 8300 million in fiscal 1989 for base closings.
In following years, funding would come from three
sources - new appropriations, transfer from Defense
Department accounts and proceeds from the sale of
military base properties.
The only amendment to the Armey substitute was
offered by John Edward Porter, R-Ill., providing that
not more than half of the commission's professional
staff be individuals who have been employed by the
Department of Defense during 1988. Porter's amend-
ment was approved by voice vote.
-BN Christine C Lau rencc
"'Knowingly' is the key word."
Testifying July 12, Carlucci
strongly opposed overly restrictive lim-
its on the post-government employ-
ment by defense-procurement experts
and on the Pentagon's use of consul-
tants. "The tradeoff for unnecessaril
tight career restrictions on acquisition
officials may well be [loss of) quality
and expertise available to our nation's
overall defense effort." he warned.
Czars and Corps
A second front in the brewing
battle over defense-procurement legis-
lation will focus on Hill efforts to
separate management of weapons-pur-
chasing from the military services:
? Sen. Alan J. Dixon. D-111., has in-
troduced S 2621. a measure that would
make the under secretary of defense
for acquisition "a true acquisition and
procurement czar." in Dixon's words.
with direct authority over top pro-
curement managers in the services.
? Rep. Dennis M. Hertel. D-Mich..
has introduced HR 4950 to create a
Defense Procurement Agency within
the Defense Department, manned by
an elite corps of civilian procurement
specialists to conduct all contracting-
e Boxer plans to introduce a bill t