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A potentially $10 billion contract to Bermuda-based Accenture Ltd., could be nullified under an amendment approved, 35-17, by the House Appropriations Committee on Wednesday.

The amendment, offered by Reps. Rosa DeLauro, D-Conn., and Marion Berry, D-Ark., would negate the Homeland Security Department's contract with the company for U.S. VISIT, its new system to track foreign visitors entering and exiting the country.

Rep. James Moran, D-Va., cautioned lawmakers that negating the contract would ensue a lawsuit and delay improved border security. But DeLauro and other lawmakers argued it was anti-American to award a contract to a company headquartered offshore to intentionally avoid paying U.S. taxes.

Other panel members said Accenture pays a higher percentage of taxes than the two other domestic bidders it beat out for the award -- Lockheed Martin, which is based in Maryland, and Computer Sciences Corp., located in California.

The Rules Committee will decide if the provision should remain in the legislation before it is brought to the House floor for a vote.

COMMENTS

• Congress should terminate this contract and I agree that they should terminate all other contracts to off-shore firms. Accenture decided to avoid US taxes by moving to Bermuda - now let them work for Bermuda! I also agree that Accenture should not be singled out - Congress should terminate all overseas contractors unless they are working overseas concerning overseas issues. Congress always should do what looks good to constituents back home because that is why they are elected! Congress should represent the will of the people that elect them! My will is that government only should contract with firms that create US jobs and pay US taxes. tax payer Posted June 15, 2004 7:06 AM
• If Congress is going to terminate this contract because the contractor is offshore, then they need to look at all contracts awarded to offshore companies. Don't look at a certain few because it looks good to the constituents back home. GovExec.com reader Posted June 10, 2004 8:35 AM
• It is about time! The contract never should have been awarded. The Congress should change the acquisition regulations so that all contracts awarded have to collect USA taxes with employees paying social security and medicare as well. I am tired of the govermnet spending my money and not even getting taxes on the work and the jobs created. I do not want government spending going to other countries for execution. This is in line with D Hunter's concern about defense contracts being awarded to USA companies. Hunter needs to change to awarding to operations located within the USA and forget the ownership. Each contract should require the payment of taxes to the USA and not rely on firms to pay - deduct a withholding tax from the contract amount. tax payer Posted June 10, 2004 6:16 AM