[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.J. Res. 3 Introduced in House (IH)]

103d CONGRESS
  1st Session
H. J. RES. 3

          Entitled the ``Government Procurement Act of 1993''.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 5, 1993

   Mrs. Bentley introduced the following joint resolution; which was 
 referred jointly to the Committees on Government Operations and Armed 
                                Services

_______________________________________________________________________

                            JOINT RESOLUTION


 
          Entitled the ``Government Procurement Act of 1993''.

Whereas the United States Government's national debt exceeds $4,000,000,000,000;
Whereas it is in the best interest of the United States Government to purchase 
        products, services, and supplies at the least expensive cost;
Whereas in calculating the true purchase price of products, services, and 
        supplies, the United States Government should calculate the accurate 
        out-of-pocket expense for items and services involved;
Whereas the Congressional Research Service has estimated that 41.4 percent of 
        every United States Government dollar invested in domestic procurement 
        is returned to the Federal and State governments in taxes;
Whereas the Congressional Research Service has estimated that 23.2 percent of 
        every United States Government dollar invested in domestic procurement 
        is returned in Federal Corporate Profit Taxes, Federal Unincorporated 
        Nonfarm Business Income taxes, and Federal Personal Income taxes, and 
        can be used to reduce the deficit;
Whereas the Congressional Research Service has estimated that 16.3 percent of 
        every United States Government dollar invested in domestic procurement 
        is returned in taxes earmarked for the Old Age, Survivors, and 
        Disability Insurance (Social Security) trust fund;
Whereas the return of investment dollars to the United States is both vital and 
        desirable for its economy;
Whereas full employment is vital to the well-being of both the United States 
        workforce and United States industry;
    Resolved by the Senate and House of Representatives of the United 
States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Government Procurement Act of 
1993''.

SEC. 2. AMENDMENTS.

    (a) Civilian Procurement.--Section 303B of the Federal Property and 
Administration Services Act of 1949 (41 U.S.C. 253b) is amended by 
adding at the end thereof the following new subsection:
    ``(g)(1) In evaluating an offeror's price contained in any bid or 
proposal for any procurement in excess of $100,000, the head of the 
agency shall treat as containing the lowest price that bid or proposal 
which will yield the lowest net cost to the Government.
    ``(2) In determining net cost to the Government, the head of the 
agency shall deduct from the price offered--
            ``(A) the income taxes withheld or otherwise paid on wages 
        paid to the offeror's employees for work on performance on the 
        procurement contract;
            ``(B) projected corporate income taxes to be paid by the 
        offeror to the Government on any profits made on the 
        procurement;
            ``(C) any other rebate, refunds, assessments, or other 
        receipts which are likely to accrue to the Government as a 
        consequence of the offeror's performance of the procurement 
        contract.
    ``(3) The Administrator of the Office of Federal Procurement Policy 
shall, pursuant to section 6 of the Office of Federal Procurement 
Policy Act, prescribe policies for the implementation of this 
subsection.''.
    (b) Defense Agencies.--Section 2305 of title 10, United States 
Code, is amended by adding at the end thereof the following new 
subsection:
    ``(e)(1) In evaluating an offeror's price contained in any bid or 
proposal for any procurement in excess of $100,000, the head of the 
agency shall treat as containing the lowest price that bid or proposal 
which will yield the lowest net cost to the Government.
    ``(2) In determining net cost to the Government, the head of the 
agency shall deduct from the price offered--
            ``(A) the income taxes withheld or otherwise paid on wages 
        paid to the offeror's employees for work on performance on the 
        procurement contract;
            ``(B) projected corporate income taxes to be paid by the 
        offeror to the government on any profits made on the 
        procurement;
            ``(C) any other rebate, refunds, assessments, or other 
        receipts which are likely to accrue to the Government as a 
        consequence of the offeror's performance of the procurement 
        contract.
    ``(3) The Administrator of the Office of Federal Procurement Policy 
shall, pursuant to section 6 of the Office of Federal Procurement 
Policy Act, prescribe policies for the implementation of this 
subsection.''.
    (c) Conforming Amendments.--(1) Section 303B(d)(4) of the Federal 
Property and Administrative Services Act of 1949 is amended by striking 
``subsection (b)'' and inserting ``subsections (b) and (g)''.
    (2) Section 2305(b)(4)(D) of title 10, United States Code, is 
amended by inserting after ``paragraph (2)'' the following ``of this 
subsection and subsection (e)''.

SEC. 3. EFFECTIVE DATE.

    The amendments made by this Act shall apply with respect to any 
procurement (the notice for which is published) (the contract for which 
is awarded) (other test) on or after (to be supplied).

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