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LegislationLEGISLATION | Detail


H.R. 1778: Construction Quality Assurance Act of 2011

Sponsor: Maloney (D - NY)

Official Title: A bill to assure quality and best value with respect to Federal construction projects by prohibiting the practice known as bid shopping.

Status:
5/5/2011: Introduced in House
5/5/2011: Referred to House Oversight and Government Reform Committee

Commentary:
This bill would create a regulatory framework by which to identify and punish the practices of “bid shopping” and “bid peddling” for federal contracts worth over $1,000,000 for the construction, alteration, or repair of any public building or public work of the United States. Specifically, H.R. 1778 would require clear identification of potential subcontractors by bidding prime contractors and prohibit the unauthorized substitution of subcontracting entities without “good cause” or proper notice to and verification by the appropriate contracting officer. The bill authorizes non-criminal monetary penalties based upon a percentage of the bid associated with the unauthorized subcontract. In addition, however, H.R. 1778 would authorize the quasi-criminal penalty of debarment from future government business. Any contractor who fails to comply with the bill’s provisions on two contracts within a three-year period would be deemed to have committed “an offense indicating a lack of business integrity or business honesty that seriously and directly affects the present responsibility of a Government contractor within the meaning of part 9.4 of the Federal Acquisition Regulation” (48 C.F.R. 9.4). This would be sufficient grounds for either suspension or debarment from contracting with the federal government.

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