SUBS Act

I 116TH CONGRESS 1ST SESSION H. R. 5247 To require prime contractors under Federal construction contracts to notify the Government of changes in certain subcontractors performing work under the contract. IN THE HOUSE OF REPRESENTATIVES NOVEMBER 21, 2019 Mr. PETERS introduced the following bill; which was referred to the Committee on Oversight and Reform A BILL To require prime contractors under Federal construction con- tracts to notify the Government of changes in certain subcontractors performing work under the contract. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Stop Unfair Bid Shop- 4 ping Act of 2019’’ or the ‘‘SUBS Act’’. 5 VerDate Sep 11 2014 04:08 Dec 04, 2019 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H5247.IH H5247 kjohnson on DSK79L0C42 with BILLS 2 •HR 5247 IH SEC. 2. REQUIREMENT TO NOTIFY GOVERNMENT OF 1 CHANGES TO SUBCONTRACTORS UNDER 2 CONSTRUCTION CONTRACTS. 3 (a) REQUIREMENT.—An agency awarding a construc- 4 tion contract using sealed bid procedures in an amount 5 greater than $1,500,000 shall— 6 (1) require an offeror for the contract to in- 7 clude a list in the offer that includes— 8 (A) each subcontractor that the offeror in- 9 tends to use in the performance of the contract, 10 for any subcontract expected to be awarded in 11 excess of $100,000; and 12 (B) any work estimated to cost in excess of 13 $100,000 that will solely be performed by the 14 prime contractor for the contract; 15 (2) include a clause in the contract requiring 16 that the prime contractor shall submit to the agency 17 a written notification of— 18 (A) any subcontractor substituted after the 19 award of the contract for a subcontractor listed 20 under paragraph (1)(A), along with an updated 21 estimate for the cost of performing the work as- 22 sociated with the substituted subcontractor; and 23 (B) any subcontract entered into for work 24 listed under paragraph (1)(B). 25 VerDate Sep 11 2014 04:08 Dec 04, 2019 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H5247.IH H5247 kjohnson on DSK79L0C42 with BILLS 3 •HR 5247 IH (b) MODIFICATION TO CONTRACT.—In the case of a 1 construction contract covered by subsection (a), if the 2 prime contractor notifies the agency of a substituted sub- 3 contractor under subsection (a)(2) and the cost of per- 4 forming the work associated with the substituted con- 5 tractor is estimated to cost 10 percent or greater less than 6 the cost for performing such work as bid, the contracting 7 officer for the contract may modify the contract to reduce 8 the amount of the contract award to take into account 9 the substitution of subcontractor. 10 (c) AGENCY DEFINED.—In this section, the term 11 ‘‘agency’’— 12 (1) has the meaning given the term ‘‘executive 13 agency’’ in section 133 of title 41, United States 14 Code; 15 (2) does not include the Department of Defense 16 or any military department; and 17 (3) includes the United States Army Corps of 18 Engineers. 19 (d) REVISION OF FEDERAL ACQUISITION REGULA- 20 TION.— 21 (1) IN GENERAL.—Not later than 180 days 22 after the date of the enactment of this section, the 23 Federal Acquisition Regulation shall be revised to 24 provide for the implementation of this section. 25 VerDate Sep 11 2014 04:08 Dec 04, 2019 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H5247.IH H5247 kjohnson on DSK79L0C42 with BILLS 4 •HR 5247 IH (2) NOTICE AND COMMENT.—There shall be 1 provided a public notice and comment period of not 2 less than 60 days. 3 (3) FINAL RULE.—Any final rule promulgated 4 pursuant to this subsection shall take effect 30 days 5 after the date on which the final rule is published 6 in the Federal Register. 7 (e) EFFECTIVE DATE.—This Act shall apply with re- 8 spect to contracts awarded on or after the date occurring 9 180 days after the date of the enactment of this Act. 10 Æ VerDate Sep 11 2014 04:08 Dec 04, 2019 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6301 E:\BILLS\H5247.IH H5247 kjohnson on DSK79L0C42 with BILLS