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White House Suspends New Contracting Rule

March 31, 2001|Associated Press

WASHINGTON — The Bush administration is suspending a new Clinton-era rule that prevents the government from awarding contracts to bidders who have broken environmental, labor, tax or other federal laws.

The "contractor responsibility" rule--which took effect Jan. 20, President Clinton's last day in office--is suspended for 270 days or until it is revoked.

Labor unions favor the rule, but business groups have sued, arguing that linking contract awards to violations of laws is unfair.

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