House Introduces Bill to Prohibit Bid Shopping in Federal Construction Projects

June 17, 2013

House Introduces Bill to Prohibit Bid Shopping in Federal Construction Projects

On May 9, 2013, Rep. Carolyn Maloney (D-NY) introduced the “Construction Quality Assurance Act of 2013” (H.R. 1942). This bill would require prime contractors to list all subcontractors whose work is expected to exceed $100,000 and identify the nature of the work they will conduct as part of any bid for a construction contract for over $1 million. A subcontractor that is listed in a prime contractor’s bid may then only be replaced when the prime contractor demonstrates good cause and obtains the consent of the contracting office. Good cause may be demonstrated by failure to execute a contact after a reasonable period of time, bankruptcy of the subcontractor, failure by the subcontractor to meet surety bond requirements, and suspension or debarment of the subcontractor.

 

Under the bill, a prime contractor that fails to adhere to these requirements would be subject to whichever of the following penalties is the greatest:

Additionally, failure to comply with these requirements would constitute adequate evidence of a lack of business integrity for the purposes of suspension or debarment. The bill was referred to the House Committee on Oversight and Government Reform.     






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