[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3961 Referred in Senate (RFS)]

  2d Session
                                H. R. 3961


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 26, 2006

                                Received

                           November 13, 2006

     Read twice and referred to the Committee on Energy and Natural 
                               Resources

_______________________________________________________________________

                                 AN ACT



To authorize the National Park Service to pay for services rendered by 
   subcontractors under a General Services Administration Indefinite 
Deliver/Indefinite Quantity Contract issued for work to be completed at 
                    the Grand Canyon National Park.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. DEFINITIONS.

    As used in this Act, the following definitions apply:
            (1) IDIQ.--The term ``IDIQ'' means an Indefinite Deliver/
        Indefinite Quantity contract.
            (2) Park.--The term ``park'' means Grand Canyon National 
        Park.
            (3) PGI.--The term ``PGI'' means Pacific General, Inc.
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior, acting through the Director of the National 
        Park Service.

SEC. 2. FINDINGS AND PURPOSE.

    (a) Findings.--Congress finds the following:
            (1) The park issued approximately 40 task orders to PGI 
        under an IDIQ between fiscal years 2002 and 2003 for a variety 
        of projects.
            (2) The value of these task orders was over $17,000,000 for 
        various construction projects throughout the park.
            (3) According to invoices sent to the park, PGI certified 
        that proceeds of payments were being sent to subcontractors and 
        suppliers.
            (4) In January 2004, complaints were received by numerous 
        subcontractors citing lack of payments by PGI.
            (5) The National Park Service has paid over $10,000,000 to 
        PGI, of which an estimated $1,300,000 was owed, but not paid to 
        subcontractors.
            (6) During an acquisition management review conducted by 
        the Washington Contracting and Procurement Office of the 
        National Park Service, it was found that the park had failed to 
        ensure that PGI obtained the necessary payment and performance 
        bonds required by the IDIQ and the Miller Act (40 U.S.C. 270a).
            (7) On February 6, 2004, the National Park Service 
        suspended further payment to PGI and issued a suspension notice 
        to cease activity by the contractor.
            (8) The National Park Service gave PGI every reasonable 
        opportunity to resolve the situation, but PGI has effectively 
        ceased doing business.
            (9) Recovery by the Government of that $1,300,000 is 
        unlikely.
            (10) The National Park Service is prohibited from making 
        payments to a contractor without obtaining payment and 
        performance bonds.
            (11) Contract law generally prohibits payment directly to 
        subcontractors because of the lack of a direct, contractual 
        relationship between the parties.
            (12) The Federal Government has derived benefits from the 
        work that has been completed.
    (b) Purpose.--The purpose of this Act is to authorize the Secretary 
to pay for services rendered by subcontractors that should have been 
paid by PGI.

SEC. 3. AUTHORIZATION.

    The Secretary is authorized to use $1,300,000 from the park's 
entrance fee revenues to pay subcontractors of PGI for work performed 
at the park under an IDIQ with PGI between fiscal years 2002 and 2003 
provided that--
            (1) the primary contract between PGI and the National Park 
        Service is terminated;
            (2) the amount owed to the subcontractors is verified;
            (3) all reasonable legal avenues or recourse have been 
        exhausted by the subcontractors to recoup amounts owed directly 
        from PGI; and
            (4) the subcontractors provide a written statement that 
        payment of the amount verified in paragraph (2) represents 
        payment in full by the United States for all work performed at 
        the park under the IDIQ with PGI between fiscal years 2002 and 
        2003.

            Passed the House of Representatives September 25, 2006.

            Attest:

                                                 KAREN L. HAAS,

                                                                 Clerk.