,i  #aac? ,,congress  #a/ ,session  ,h4 
,r4 #aidb  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,may #i1 #bjac ,mrs4  
,c>olyn ,b4 ,maloney ( ,new ,york       
introduc$ ! foll[+ bill2 :i* 0 ref]r$ to
 ! ,committee on ,ov]sight & ,gov]nm5t  
,re=m  ,a ,,bill  ,to assure quality &  
be/ value ) respect to ,f$]al           
con/ruction projects by prohibit+ !     
practice kn[n z bid %opp+4  #a4 ,%ort   
title ,?is ,act may be cit$ z !         
,con/ruction ,quality ,assurance ,act ( 
#bjac4  #b4 ,f9d+s ,congress f9ds !     
foll[+3  7#a7 ,f$]al con/ruction project
 seal$ bid contractor selection proc$ure
 is a valuable project acquisition me?od
 t %\ld be pres]v$ & /r5g!n$ = projects 
( appropriate scope4  7#b7 ,f$]al       
procurem5t data tr5ds indicate t ag5cies
 increas+ly are rely+ on o!r negotiat$  
contractor selection proc$ures1 r ?an   
price-only selection proc$ures4  7#c7   
,requirem5ts = ,f$]al ag5cies to use    
major subcontractor bid li/+ on         
price-only prime contractor selection   

proc$ures w\ld re/ore ! balance 9 use ( 
l[-bid & competitive negotiations1 :i*  
has prov5 results 9 o!r public          
procurem5t sy/ems4  7#d7 ,bid %opp+     
occurs :5 ! successful prime contract l[
 bidd]1 aft] project aw>d1 uses !       
successful subcontract l[ bids z !      
beg9n+ po9t = a po/-aw>d auction to !   
same or o!r subcontractors to agree to  
p]=m ! subcontract "w at an ev5 l[]     
price1 ) ! sav+s accru+ only to ! b5efit
 ( ! l[-bid prime contractor1 n ! ag5cy 
program1 ! project1 or ! taxpay]4  7#e7 
,bid p$dl+ occurs :5 o!r subcontractors 
approa* ! successful prime contractor   
bidd] aft] aw>d ( ! prime contract & (f]
 to p]=m ! subcontract "w at a l[] price
 ?an submitt$ by ! subcontractor ^:     
sub-bid price 0 reli$ on by ! successful
 prime contractor1 aga9 ) ! o/5sible    
sav+s accru+ to ! prime contract l[     
bidd] only1 n ! ag5cy program1 !        
project1 or ! taxpay]s4  7#f7 ,li/+ (   
major subcontract bids 9 ! prime        
contractor's seal$ bid by ag5cies w     

effectively /em ! detrim5tal &          
inequitable practices ( bid %opp+ & bid 
p$dl+ on direct ,f$]al con/ruction      
contracts t are detrim5tal to !         
taxpay]s' int]e/ 9 ,gov]nm5t procurem5t 
transp>ency1 s\nd public contract       
adm9i/ration1 & successful con/ruction  
project completion4  7#g7 ,ag5cies w    
receive bett] project p]=mance1 by      
re/or+ integrity to ! l[-bid selection  
sy/em = bo? prime contractors & major   
subcontractors1 z abusive selection     
proc$ures (t5 lead to great] project    
disputes1 claims1 *anges1 product &     
mat]ial sub/itutions1 & 9 "s cases ev5  
contractor defaults--aga91 all to !     
detrim5t ( ! ag5cy program1 ! project1 &
 ! taxpay]s g5]ally4  7#h7 ,re/or+      
equitable safegu>ds 9 ! l[-bid sy/em w  
assure t ag5cy practice w con=m to !    
highe/ /&>ds adh]$ to by indu/ry        
pr(essionals & contractor associations1 
& w reflect be/ practices foll[$ by a   
great _m o!r public procurem5t sy/ems   
nationally & int]nationally4  #c4       

,def9itions ,9 ?is ,act3  7#a7 ,contract
 ,! t]m contract means any contract ) ! 
,f$]al ,gov]nm5t1 exce$+ #a1jjj1jjj 9   
am\nt1 = ! con/ruction1 alt]ation1 or   
repair ( any public build+ or public "w 
( ! ,unit$ ,/ates4  7#b7 ,contractor ,! 
t]m contractor means an individual or   
entity t has be5 aw>d$ or is seek+ to be
 aw>d$ a con/ruction contract by !      
,f$]al ,gov]nm5t4  7#c7 ,subcontractor  
,! t]m subcontractor means an individual
 or entity t subcontracts ) a contractor
 9 an am\nt 9 excess ( #ajj1jjj = "w on 
a contract4  #d4 ,requirem5ts reg>d+    
subcontractors = ,f$]al contractors on  
con/ruction projects  7a7 ,requirem5t   
,to ,li/ ,subcontractors  7#a7 ,9 g5]al 
,ea* solicitation by an executive ag5cy 
= ! procurem5t ( con/ruction 9 an am\nt 
9 excess ( #a1jjj1jjj %all require ea*  
bidd] to submit z "p ( its bid ! "n1    
location ( ! place ( bus9ess1 & nature (
 ! "w ( ea* subcontractor ) :om ! bidd]1
 if aw>d$ ! contract1 w subcontract = "w
 9 an am\nt 9 excess ( #ajj1jjj on !    

contract4  7#b7 ,requirem5ts = specific 
categories  7,a7 ,except z provid$ 9    
subp>agraphs 7,b7 & 7,c71 ! bidd] %all  
li/ only "o subcontractor = ea* category
 ( "w z def9$ by ! bidd] 9 its bid or   
proposal4  7,b7 ,a bidd] may li/        
multiple subcontractors = a category (  
"w if ea* su* subcontractor is li/$ to  
p]=m a discrete portion ( ! "w )9 a     
category4  7,c7 ,a bidd] may li/ itself 
= any portion ( "w "u ! contract1 :i*   
%all be deem$ a repres5tation by ! bidd]
 t x is fully qualifi$ to p]=m t portion
 ( ! "w itself & t ! bidd] w p]=m t     
portion itself4  7#c7 ,result ( failure 
to li/ subcontractors ,an executive     
ag5cy %all consid] any bidd] t fails to 
li/ subcontractors 9 accordance ) ?is   
,act & ! regulations promulgat$ pursuant
 to section #g ( ?is ,act to be         
non-responsive & bids by su* bidd]s %all
 n be consid]$4  7b7 ,proc$ures =       
,sub/itution ( a ,li/$ ,subcontractor   
7#a7 ,cons5t & good cause requir$ ,no   
contractor %all sub/itute a             

subcontractor 9 place ( ! subcontractor 
li/$ 9 ! orig9al bid or proposal1 except
 ) ! cons5t ( ! contract+ (fic] = good  
cause4  7#b7 ,examples ( good cause     
,good cause "u p>agraph 7#a7 %all       
include ! foll[+3  7,a7 ,failure ( !    
subcontractor to execute a writt5       
contract aft] a reasonable p]iod if su* 
writt5 contract1 bas$ ^u ! t]ms1        
conditions1 plans1 & specifications ( ! 
contract & ! t]ms ( ! subcontractor's   
bid or proposal1 is pres5t$ to !        
subcontractor by ! contractor4  7,b7    
,bankruptcy ( ! subcontractor4  7,c7 ,! 
dea? or physical disability ( !         
subcontractor1 if ! subcontractor is an 
individual4  7,d7 ,dissolution ( !      
subcontractor1 if ! subcontractor is a  
corporation or p>tn]%ip4  7,e7 ,failure 
( a subcontractor to meet ! surety bond 
requirem5ts specifi$ by ! bidd] z a     
condition ( ! subcontractor to p]=m on !
 contract1 if aw>d$ to ! bidd]4  7,f7 ,!
 subcontractor is ineligible to p]=m on 
! subcontract because ! subcontractor is

 susp5d$1 deb>r$1 or o!rwise ineligible 
to p]=m4  7,g7 ,a s]ies ( failures by ! 
subcontractor to p]=m 9 accordance ) !  
specification1 t]ms1 & conditions ( its 
subcontract result+ 9 ! )hold+ ( am\nts 
reque/$ by ! subcontractor 9 accordance 
) section #cije ( title #ca1 ,unit$     
,/ates ,code1 & ! regulations implem5t+ 
su* section4  7,h7 ,failure ( !         
subcontractor to comply ) a requirem5t (
 law applicable to ! subcontractor4     
7,i7 ,failure or refusal ( !            
subcontractor to p]=m ! subcontract4    
7#c7 ,reque/s = sub/itution ,a reque/ ( 
a contractor = a sub/itution ( a li/$   
subcontractor %all be submitt$ 9 writ+  
to ! contract+ (fic] & %all include !   
reasons = ! reque/4 ,! contractor %all  
provide a copy ( its reque/ =           
sub/itution to ! li/$ subcontractor by  
any means t provides writt5 ?ird-p>ty   
v]ification ( deliv]y to ! la/ kn[n     
address ( ! subcontractor4 ,a           
subcontractor :o has be5 s notifi$ %all 
h five work+ days )9 :i* to submit      

writt5 objections to ! sub/itution to ! 
contract+ (fic]4 ,failure to file su*   
writt5 objections %all con/itute !      
cons5t ( ! li/$ subcontractor to !      
sub/itution4  7c7 ,limitation on        
,assignm5t1 ,transf]1 or ,sub/itution   
7#a7 ,limitation on assignm5t or transf]
 ,no contractor %all p]mit any          
subcontract to be volunt>ily assign$ or 
transf]r$ or to be p]=m$ by any entity  
o!r ?an ! subcontractor li/$ 9 ! bid or 
proposal )\t ! cons5t ( ! contract+     
(fic]4 ,cons5t ( ! contract+ (fic] to a 
contractor = a sub/itution %all--  7,a7 
be promptly made 9 writ+2 &  7,b7 be    
includ$ 9 ! contract file4  7#b7        
,limitation on sub/itution ,no          
contractor t li/$ itself = a portion ( !
 "w "u ! contract %all subcontract any  
portion ( ! "w = :i* x li/$ itself1     
unless au?oriz$ by ! contract+ (fic] to 
sub/itute "o or m subcontractors to p]=m
 su* "w4  #e4 ,p5alties  7a7 ,9 g5]al   
7#a7 ,a contractor %all be subject to   
p5alties if1 )\t obta9+ ! approval ( !  

contract+ (fic]1 ! contractor--  7,a7   
replaces a li/$ subcontractor = a       
contract ) an executive ag5cy2 or  7,b7 
aw>ds a subcontract to a subcontractor  
to p]=m "w :i* ! contractor _h id5tifi$ 
z "w to be p]=m$ directly by !          
contractor4  7#b7 ,a subcontractor %all 
also be subject to p5alties if !        
subcontractor is det]m9$ to h kn[+ly    
p>ticipat$ 9 ! failure ( ! contractor to
 comply ) ! regulatory provisions relat+
 to ! sub/itution ( a li/$              
subcontractor4  7b7 ,am\nt ( p5alties   
,to be impos$ ,! am\nt ( p5alties impos$
 "u ?is section %all be equal to !      
great] (--  7#a7 #aj p]c5t ( ! am\nt ( !
 bid by ! li/$ subcontractor2  7#b7 !   
diff]5ce betwe5 ! am\nt ( ! bid by !    
li/$ subcontractor & ! am\nt ( ! bid by 
! sub/itut$ subcontractor2 or  7#c7 !   
diff]5ce betwe5 ! am\nt ( ! bid by a    
sub/itut$ subcontractor & ! doll> value 
specifi$ by ! contractor = ! "w :i* !   
contractor _h li/$ = its own p]=mance4  
7c7 ,s\rce ( funds = p5alties ,p5alties 

assess$ pursuant to ?is section %all be 
d$uct$ f ! rema9+ unpaid contract       
balance & deposit$ into ! fund f :i* !  
contract 0 aw>d$4  #f4 ,gr\nds =        
susp5sion or deb>m5t ,! imposition (    
p5alties on a contractor or             
subcontractor = failure to comply ) !   
proc$ures = ! sub/itution (             
subcontractors on #b contracts )9 a     
#c-ye> p]iod %all be deem$ to be        
adequate evid5ce ( ! commission ( an    
(f5se indicat+ a lack ( bus9ess         
integrity or bus9ess hone/y t s]i\sly & 
directly affects ! pres5t responsibility
 ( a ,gov]nm5t contractor )9 ! mean+ (  
"p #i4d ( ! ,f$]al ,acquisition         
,regulation 7,deb>m5t1 ,susp5sion1 &    
,eligibility7 7#dh ,,cfr #i4d74  #g4    
,implem5tation ?r\gh ! ,f$]al           
,acquisition ,regulation  7a7 ,propos$  
,revisions ,propos$ revisions to !      
,gov]nm5t-wide ,f$]al ,acquisition      
,regulation to implem5t ! provisions 9  
?is ,act %all be publi%$ n lat] ?an #abj
 days aft] ! date ( ! enactm5t ( ?is    

,act & provide n less ?an #fj days =    
public comm5t4  7b7 ,f9al ,regulations  
,f9al regulations %all be publi%$ n less
 ?an #ahj days aft] ! date ( ! enactm5t 
( ?is ,act & %all be effective on ! date
 t is #cj days aft] ! date (            
publication4