BCFC Applauds Introduction of
"Yellow Pages Test" Bill
Sen. John Thune (SD) and Rep. Greg Steube (FL)
Sponsor the Freedom From Government Competition Act
FOR IMMEDIATE RELEASE
Fairfax, VA, December 9, 2019
- With over one million Federal employees engaged in commercial activities, "
Federal agencies not only duplicate private sector business, but many engage in unfair government competition with the private sector
," John Palatiello, President of the Business Coalition for Fair Competition
said today following the introduction of the Freedom From Government Competition Act.
Palatiello applauded the Congressional introduction of the Freedom From Government Competition Act, H.R. 5329, introduced by Representative Greg Steube (R-FL) and S. 2990, introduced by Senator John Thune (R-SD). This long-overdue legislation would establish a balanced and reasonable statutory process for the review of commercial activities in the Federal government. This bill does not mandate privatization. However, it does establish a process for agency review of in-house commercial activities.
Noting the benefits to government efficiency and the expertise of the private sector in providing goods and services, Palatiello commended this key Federal legislation authorizing the Federal Government to employ the "Yellow Pages Test" - a simple and effective process that says if you can find firms in the Yellow Pages of the phone book providing products or services that the government is also providing, then the government service should be subject to market competition to break up the government monopoly and provide a better value to the taxpayer. That is a test that has been successfully applied by Mayors and Governors, both Democrat and Republican, across the Nation.
Unfortunately, the Federal government does not have such a process in place today for two reasons. "First, Congress has failed for more than 80 years to enact legislation to codify such a process. Additionally, Congress has imposed a very unfortunate moratorium on the relevant administrative process, found in Office of Management and Budget
(OMB) Circular A-76
, which has guided this matter since 1955," Palatiello said.
Palatiello concluded, "the Federal government has become too big to succeed. The reason is government, in an effort to be all things to all people, cannot provide the basic services fundamental to its core mission and the Constitution. Above all, the Federal government is spread too thin, attempting to carry out activities best left to private enterprise."
Business Coalition for Fair Competition (BCFC)
is a national coalition of businesses, associations, taxpayer organizations and think tanks that are committed to reducing all forms of unfair government created, sponsored and provided competition with the private sector. BCFC believes the free enterprise system is the most productive and efficient provider of goods and services and strongly supports the Federal government utilizing the private sector for commercially available products and services to the maximum extent possible.
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