Construction Quality Assurance Act of 2005 - Prohibits the federal government or any contractors or subcontractors from participating in the practice of bid shopping with respect to any government contract exceeding $1 million for the construction or repair of any public building or public work. Defines "bid shopping" as the practice of divulging, or causing to be divulged, a contractor's or subcontractor's bid or proposal or requiring a contractor or subcontractor to divulge its bid or proposal to another prospective contractor or subcontractor before the award of a contract or subcontract in order to secure a lower bid or proposal.
Requires any invitation for bid or request for proposal issued by the government to include a clause explicitly prohibiting such practice and specifying penalties, which may include contract termination or imposition of liquidated damages equal to the greater of: (1) the final bid on the contract; or (2) the price paid to the contractor or subcontractor for work performed.
[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2834 Introduced in House (IH)]
109th CONGRESS
1st Session
H. R. 2834
To assure quality and best value with respect to Federal construction
projects by prohibiting the practice known as bid shopping.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 9, 2005
Mr. Kanjorski (for himself, Mr. Moran of Virginia, Mr. Wynn, Mr. Udall
of Colorado, Mr. Jefferson, Mrs. Maloney, Mr. Bishop of New York, and
Mr. Owens) introduced the following bill; which was referred to the
Committee on Government Reform
_______________________________________________________________________
A BILL
To assure quality and best value with respect to Federal construction
projects by prohibiting the practice known as bid shopping.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Construction Quality Assurance Act
of 2005''.
SEC. 2. FINDINGS.
Congress finds the following:
(1) Certain abhorrent and undesirable practices, known as
bid shopping, have arisen from time to time in construction
work for the Federal Government.
(2) Bid shopping threatens the integrity of the procurement
of construction services.
(3) The practice of bid shopping deprives taxpayers of the
full benefits of fair competition among contractors and
subcontractors, and often results in poor quality of material
and workmanship to the detriment of the public.
(4) When bid shopping occurs, the cost savings gained are
not passed on to the Federal Government, but the simultaneous
reductions in quality and value are passed on to the Federal
Government.
(5) The procurement practices of the Federal Government
should be modified to prohibit bid shopping at all levels.
SEC. 3. DEFINITIONS.
In this Act:
(1) Contract.--The term ``contract'' means any contract
with the Federal Government, exceeding $1,000,000 in amount,
for the construction, alteration, or repair of any public
building or public work of the United States.
(2) Bid shopping.--The term ``bid shopping'' means the
practice of divulging, or causing to be divulged, a
contractor's or subcontractor's bid or proposal or requiring a
contractor or subcontractor to divulge its bid or proposal to
another prospective contractor or subcontractor before the
award of a contract or subcontract in order to secure a lower
bid or proposal.
(3) Contractor.--The term ``contractor'' means an
individual or entity that has been awarded or is seeking to be
awarded a construction contract by the Federal Government.
(4) Subcontractor.--The term ``subcontractor'' means an
individual or entity with which an offeror on a contract
proposes to enter into a subcontract for manufacturing,
supplying, fabricating, installing, or otherwise performing
with respect to the contract, whether the work is to be
performed by the subcontractor at the construction site or off
the site.
SEC. 4. PROHIBITION AGAINST BID SHOPPING.
(a) Prohibition.--Neither the Federal Government, nor a contractor
or subcontractor, shall participate in the practice of bid shopping
with respect to a contract.
(b) Notice Requirement.--Any invitation for bid or request for
proposal issued by the Federal Government shall include a clause
explicitly prohibiting the practice of bid shopping and specifying the
penalties for violating the prohibition against bid shopping.
SEC. 5. PENALTIES.
(a) In General.--A contract shall provide for termination of the
contract or the imposition of liquidated damages in the amount
described in subsection (b) upon a determination by the contracting
officer, in accordance with applicable provisions of the Federal
Acquisition Regulation (including provisions relating to due process),
that a violation of section 4(a) has occurred.
(b) Amount.--The amount of liquidated damages that may be imposed
pursuant to subsection (a) is an amount equal to the greater of--
(1) the final bid on the contract (before the award of the
contract) by either a contractor or subcontractor; or
(2) the price paid to the contractor or any subcontractor
for work performed.
SEC. 6. IMPLEMENTATION THROUGH THE FEDERAL ACQUISITION REGULATION.
Not later than 120 days after the date of the enactment of this
Act, the Federal Acquisition Regulation shall be modified to provide
appropriate solicitation provisions, contract clauses, and
investigatory procedures to implement this Act.
SEC. 7. EFFECTIVE DATE.
This Act shall apply with respect to contracts awarded on or after
the date of the beginning of the first fiscal quarter beginning more
than 120 days after the date of the enactment of this Act.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Government Reform.
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