[Congressional Record Volume 143, Number 21 (Tuesday, February 25, 1997)]
[Senate]
[Page S1569]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. KENNEDY (for himself and Mr. Kerry):
  S. 354. A bill to amend the Federal Property and Administrative 
Services Act of 1949 to prohibit executive agencies from awarding 
contracts that contain a provision allowing for the acquisition by the 
contractor, at Government expense, of certain equipment or facilities 
to carry out the contract if the principal purpose of such provision is 
to increase competition by establishing an alternative source of supply 
for property or services; to the Committee on Governmental Affairs.


        the fair competition in federal procurement act of 1997

  Mr. KENNEDY. Mr. President, Senator Kerry and I are offering 
legislation today to present a serious injustice in Federal 
procurement. Congressman John Olver is introducing identical 
legislation in the House of Representatives. This issue has come to our 
attention in the context of the Bureau of Engraving and Printing's 
contract for U.S. currency paper production, but it could arise in 
other contexts that would pose similar inequities.
  A respected, long-standing family-owned business in Dalton, MA, Crane 
and Company, has supplied currency paper for the Treasury for the past 
117 years. Crane has been a trusted supplier to the Federal Government, 
providing high quality products on a timely basis. It has negotiated 
reasonable terms with the Government, keeping its price increases below 
the rate of inflation. And it has made substantial investments over the 
years to ensure that it has the sophisticated equipment needed to 
produce the currency, including the special security features now built 
into the paper itself.
  This year, however, the Bureau of Engraving and Printing has proposed 
to go to extraordinary lengths to create alternate sources for currency 
paper production. The Bureau has proposed subsidies to other companies 
to help them become competitive and buy the state-of-the-art equipment 
that Crane bought on its own. This is not fair competition. It's a 
misguided policy that will give other companies an unfair advantage and 
create an unlevel playing field.
  Our legislation is straightforward. It amends section 303 of the 
Federal Property and Administrative Services Act of 1949 to prohibit 
nondefense agencies in the executive branch from financing equipment or 
facilities to help a contractor compete against an existing contractor 
in Federal procurement. With all the pressures of the deficit, we 
should not be spending taxpayer money on this sort of sham competition. 
It's unfair to leading-edge firms like Crane that have invested their 
own resources to obtain Government contracts, and it's hard to see how 
any taxpayers will benefit. Crane is in a class by itself. There is no 
suggestion of antitrust problems. Crane wins these contracts fair and 
square against potential competitors, and it should not have to compete 
with Uncle Sam.
  I urge the Congress to enact this legislation and prevent an 
extremely unfair and unwise policy from moving forward at the Treasury 
Department or other Federal agencies.
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