Lawmakers still question how much authority the new national intelligence director will hold.
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GAO chief praises proposed system's "reasonable flexibility," but urges Pentagon to continue working with unions to hammer out details.
Agencies must perform market research before awarding contracts to government-owned prison labor company.
Rep. Tom Davis, R-Va., and an executive at Computer Sciences Corp. reconsider official involvement.
Second phase of probe examines whether senior administration officials manipulated intelligence and pressured analysts to justify Iraq invasion.
Proposal comes days after GAO report knocks panel’s financial management.