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Managing America: Government Contracts

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Week Ending April 25, 2008

H.R.3033 To improve Federal agency awards and oversight of contracts and assistance and to strengthen accountability of the Government-wide suspension and debarment system.

The bill begins with the requirement that the Administrator of the GSA establish a website that includes a database reflecting the integrity and performance of recipients of federal contracts and other assistance. The site would be used by federal contracting officers and other federal officials that have the authority to debar or suspend individuals from federal contracts. The database would include civil, criminal and administrative proceedings brought against the contractor by the federal and state governments. Data on contractor’s debarment and suspension would also be included.

The bill report notes that there is no comprehensive listing of federal and state actions against contractors and, because the federal government may award contracts to responsible contractors, that is not always the case and a database of that information would help the government weed out bad contactors.

The bill also requires that regulations be amended to presume a person to be ‘non-responsible’ with respect to a contract if a judgment or conviction for the same offense occurs twice within three years. An amendment in committee eliminated the presumption of non-responsibility for repeat violators and replaced it with the requirement that the government issues a notice of proposed disbarment requiring the applicant to show cause why they are presently responsible. The amendment, however, does not explain what the criteria for determining if a repeat offender should be granted a contract.

Those applying for contracts would be required to disclose all federal or state disbarments, civil, criminal and administrative actions brought against them and all federal contracts that were suspended due to default over the past five years. In committee, however, an amendment succeeded to remove suspension and debarment show cause orders from the database. The contractor applicant is not to be considered a responsible source of database information and so the Administrator is required to develop policies to ensure the timeliness and accuracy of data.

Sponsor:  Rep. Carolyn Maloney (D-NY-14^th)

Vote: Passed House by voice vote April 23, 2008

Cost to the taxpayers: “CBO estimates that implementing H.R. 3033 would cost $5 million in 2009 and about $20 million over the 2009-2013 period, assuming appropriation of the necessary amounts.”

Earmark Certification:   H.R. 3033 does not include any congressional earmarks, limited tax benefits, or limited tariff benefits as defined in clause 9(d), 9(e), or 9(f) of rule XXI. ## All Rights Reserved. © 2008 TheWeekInCongress.com(TM)

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MORE INFORMATION

SECTION-BY-SECTION

Section 1: Short title

The short title of the bill is the Contractors and Federal Spending Accountability Act of 2008.

Section 2: Database for contracting officers and suspension and debarment officials

This section requires the Director of OMB and Administrator of General Services to establish a database regarding integrity and performance of federal contractors and grant recipients.

Subsection (b) requires that the database include a description of civil, criminal, and administrative proceedings concluded by the federal and state governments against federal contractors or grant recipients; all terminations for default of federal contracts and grants; all federal suspensions and debarments; all federal administrative agreements to resolve a suspension or debarment proceeding and, to the maximum extent practicable, such agreements with states; and all final findings by a federal official that the person is not a responsible source as defined in federal procurement law. The database includes such information for the most recent five years.

Subsection (c) requires federal agency officials to directly input and update information in the database; requires procedures to ensure the accuracy and timeliness of the information; and permits contractors and grant recipients to append comments to information in the database.

Subsection (d) requires that the database be publicly available through the General Services Administration (GSA) website, with the exception of information that is exempt from public disclosure under the Freedom of Information Act.

Section 3: Suspension and debarment procedure for repeat violators

This section requires that suspension and debarment regulations be revised so that contractors and grant recipients are issued a notice of proposed debarment which would require presentation of evidence to establish their present responsibility if they have two convictions or judgments for the same of similar offenses in a three-year period, if each conviction or judgment is a cause for suspension or debarment.

Section 4: Disclosure in applications

This section requires revision of regulations so that offers for contracts and applications for grants in an amount exceeding the simplified acquisition threshold must provide the information required to be included in the database.

Section 5: Role of Interagency Committee

This section requires the Interagency Committee on Debarment and Suspension, as established in Executive Order 12549, with respect to the government-wide system of suspension and debarment to resolve issues regarding which federal agency is the lead agency having responsibility to initiate proceedings; coordinate actions among interested agencies; encourage pooled resources to achieve operational efficiencies; recommend rules changes to OMB (if such recommendations are approved by a majority of the Interagency Committee); authorize OMB to issue guidelines that implement those recommendations; authorize the chair of the Committee to establish subcommittees as appropriate; and submit to the Congress an annual report on progress and efforts to improve the system, member agencies' active participation in the committee's work, and a summary of each agency's activities and accomplishments in the system.

Section 6: Authorization of independent agencies

This section authorizes any federal entity not covered by Executive Order 12549 to participate in the government-wide suspension and debarment system.

Section 7: Authorization of appropriations

This section authorizes appropriations to GSA for the establishment of the database.

Section 8: Report to Congress

This section requires a report to Congress describing all federal contracting and grant databases and recommending legislative or administrative action to create a comprehensive, streamlines database.

## All Rights Reserved. © 2008 TheWeekInCongress.com.(TM)

No reproduction, language translation or distribution without written permission from TheWeekInCongress.com.(TM)