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B-96983 1 (1979-04-25)

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COMPTROLLER GENERAL OF THE UNITED STATES
  (     WASHINGTON, D.C. 20548


B-96983
FPC-96-1-4



The Honorable James M. Hanley
Chairman, Committee on Post Office
  and Civil Service
House of Representatives


APR 2 5 19'70


Dear Mr. Chairman:

     Reference is made to your request of February 15, 1979,
for ouromments on 14          a bill wich if nact4d -culd.
be cited as tre Defense Production Act Amendments of 1979.J
This bill would prohibit an acquisitions officer, as defined,
from accepting, for a two year period after his Federal em-
ployment, any compensation including employment, from a con-
tractor if the acquisitions officer engaged personally and
substantially, in duties of his office in regard to any pro-
curement contract under which the contractor received funds.
The prohibition would not apply to duties performed more than
three years before the end of the officer's Federal employment.
The purpose of the bill is tocassure that Federal procurement
decisions will not be influenced by a procurement official's
anticipation of private sector employment (or other compensa-
tion) with a Government contractor.; \

     The Ethics in Government Act of 1978 (P.L. 95-521) revised
the Federal post employment statute, 18\ U.S.C. 207, to further
restrict post employment activities of Federal employees.
However, the revised statute does not a dress the type of prob-
lem H.R. 148 would attempt to resolve. k 1975 study by the
Council on Economic Priorities entitled Military Maneuvers
documented the heavv traffic in personnel\from the Department
of Defense to the military contractors.   etween 1969 and 1973
at least 1,400 high-ranking individuals have left DOD to accept
employment with military contractors. According to the Council,
379 (27 percent) of these individuals were in conflict of in-
terest situations because of their employment._-

     While we believe there is a'problem within the Department
of Defense which should be corrected, we do not know whether
similar problems occur in other executive branch agencies, nor
what impact H.R. 148 would have on such agencies. We also
believe that post employment problems can also exist for other
types of Federal employees, such as lawyers, regulators, audi-
tors, etc. and that switching sides is not limited solely to
acquisitions officers.

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