A bill to amend the Federal Property and Administrative Services Act of 1949 to reform contracting procedures and contract supervision practices of the Federal Government, and for other purposes.

(Measure passed House, amended)

Amends the Federal Property and Administrative Services Act of 1949 to revise contracting procedures and contract supervision practices of the Federal Government.

Requires every person entering into a contract with the Government for the procurement, transfer, or disposition of property or services to certify that: (1) all material information required by the Administrator of General Services has or will be furnished; and (2) such information is not false or misleading. Sets forth a penalty assessment schedule for false certifications and violations of certification requirements. Directs the Administrator, before issuing an order to assess such a penalty against any person, to provide such person an opportunity for an agency hearing. Authorizes only the Administrator to modify any penalty assessed.

Empowers the Administrator to subpoena witnesses and records for the purposes of an investigation leading to a hearing or the entering of an order.

Allows any person who requested a hearing and who is aggrieved by a final order assessing a penalty, to petition for judicial review of such order. Directs the Attorney General to bring an action in an appropriate district court against any person who fails to pay an assessment.

Directs the Administrator to notify the Attorney General of any intention to initiate a proceeding against a contractor. Authorizes the Administrator to initiate the proceeding unless the Attorney General objects within 120 days. Requires the Administrator to debar an individual found to have violated certification requirements from participation in Government contracts for a period of between one month and five years depending on the amount of the assessment against such individual.

Requires any contract for property or services exceeding $10,000 in value to contain the certification requirements set forth in this Act, an agreement to abide by the assessment procedures, and a notice of such assessments.

Directs the Administrator to establish and maintain a system for control of all contracts and agreements for procurement of property or services.

Specifies that such system require the Administrator and any agency head with contracting authority to: (1) review for approval any contract exceeding $10,000 in value; (2) keep accurate records of transactions involving Federal funds; and (3) impose a system of accounting and internal controls to assure that (a) the Administrator or agency head authorizes all such transactions, (b) transactions are recorded as necessary to maintain accountability of funds, and (c) accounts are balanced regularly.

Requires the Administrator to establish a system which requires the preparation, for each significant decision for a contract, of a memorandum which: (1) specifies the date of and parties to such decision; (2) describes the nature of and actions resulting from such decision; and (3) includes the personal signature or endorsement of the Federal employee responsible for such decision. Directs the Inspector General of the agency of a contracting authority to investigate any allegations of failure to make such a memorandum. Permits the Administrator, after consulting the Inspector General of the General Services Administration (GSA), to exempt from such memorandum requirement contracts involving a Federal expenditure of under $10,000.

Requires the Administrator to: (1) review regularly the contracting activities of the GSA and other agencies; (2) inform Congress of any deficiencies in such activities; and (3) prescribe regulations to eliminate contracting practices which result in fraud, waste, or abuse.

Declares that Government purchases are not authorized unless made from sources within a buying program established by the Administrator.

Directs the Administrator, after consultation with the Inspector General, to: (1) establish a procedure for reviewing negotiated contracts exceeding $10,000 in value to determine whether such contracts can be secured more economically and efficiently by advertised bids or other means; and (2) report annually to the President and Congress any recommendations for changes in procurement procedures.

Requires the Administrator to establish a uniform system of contract audits which shall: (1) include a schedule of regular and random audits of major negotiated contracts; and (2) establish audit procedures necessary to ensure a significant probability that any negotiated contract, or any advertised contract receiving three or fewer bids, with a cost exceeding $10,000 will be audited. Requires at least 20 percent of the negotiated contracts in each classification to be audited.

Requires the Administrator and each agency head with contracting authority to maintain abstracts of such audits available for public inspection. Authorizes the Administrator and the Inspector General to obtain access to the contract records of any contractor or subcontractor. Makes the auditing powers of the Administrator subject to the Accounting and Auditing Act of 1950 and the Inspector General Act of 1978.

Prohibits the Administrator from altering a leased facility if the cost of such alteration exceeds 25 percent of the annual rent of such facility unless: (1) such alteration is authorized specifically by Congress; (2) a statement describing the overall work has been provided in advance to the congressional committees with oversight responsibility for such alteration; or (3) the work would not alter more than 5,000 square feet of the leased space.