The TRAC Act would freeze the award of any further government contracts and is designed to "in-source," or return work to government employees. This initiative would prevent any further use of private-sector resources by federal agencies, as well as put a hold on currently contracted activities to determine if they could be done more cost effectively by the public sector.

On February 14, Representative Albert Wynn (D-Md.) reintroduced the TRAC Act, H.R. 721. The legislation is similar, but not identical, to the version Wynn sponsored last session (H.R. 3766). H.R. 721 has managed to attract an alarming 158 cosponsors. The AIA considers the TRAC Act a threat to the architectural profession and will continue to oppose this bill in its current form.

Since 1966, it has been the federal government's policy to use the services of the private sector. Consequently, the federal government has relied on commercial interests to supply the products and services the government needs (OMB Circular No. A-76). Under this current policy, a comparison is made between the cost of contracting out to the private sector and the cost of in-house performance.

Altering public/private balance
The TRAC Act would alter the balance of the current public/private partnership. This initiative resulted from the questionable assumption that the federal government's reliance upon the private marketplace has resulted in increased costs, lack of oversight, and public distrust.

The TRAC Act specifically would prohibit any federal agency from making a decision "to privatize, outsource, contract out, or contract for the performance of a function currently performed by such agency or to conduct a study to convert the performance of the function to the performance by a contractor." An agency could apply for permission to contract out, but must first conduct a laborious public/private competition. If a private contract would prevent "extraordinary economic harm" and save the government "at least 10 percent," it may be awarded to the private sector. In addition, even if a private entity meets this high savings threshold, it will not receive the contract if it would conflict with an established collective bargaining agreement between the agency and a federal labor organization.

Also of concern is the provision mandating that existing contracts be reviewed. If for two consecutive years the actual cost of the private contract exceeds the projected costs when the contract was awarded, the agency shall either conduct a new public/private competition or revoke the contract entirely and convert the function to performance by the federal agency.

How this legislation affects the design professions
If passed, the TRAC Act would severely reduce government contract work for architects and engineers. Federal agencies manage and coordinate the design process but look to the specialized expertise of private sector architects and engineers to perform the actual design work. Recently, the General Accounting Office (GAO) estimated there is a $4 billion backlog in "repair and alteration work that need[s] to be completed at federal buildings." Thus, not only would the TRAC Act cripple many private sector firms that supply these valuable services, it would make it impossible for federal agencies to complete needed repairs to ensure the modernization and safety of federal facilities.

Copyright 2001 The American Institute of Architects. All rights reserved.