[Congressional Record Volume 143, Number 28 (Thursday, March 6, 1997)]
[House]
[Pages H774-H776]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




    DISTRICT OF COLUMBIA COUNCIL CONTRACT REVIEW REFORM ACT OF 1997

  Mr. DAVIS of Virginia. Mr. Speaker, I move to suspend the rules and 
pass the bill (H.R. 513) to exempt certain contracts entered into by 
the government of the District of Columbia from review by the Council 
of the District of Columbia.
  The Clerk read as follows:

                                H.R. 513

       Be it enacted 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 ``District of Columbia Council 
     Contract Review Reform Act of 1997''.

     SEC. 2. EXEMPTION OF CERTAIN CONTRACTS FROM COUNCIL REVIEW.

       (a) In General.--Section 451 of the District of Columbia 
     Self-Government and Governmental Reorganization Act (sec. 1-
     1130, D.C. Code) is amended by adding at the end the 
     following new subsection:
       ``(d) Exemption for Certain Contracts.--The requirements of 
     this section shall not apply with respect to any of the 
     following contracts:
       ``(1) Any contract entered into by the Washington 
     Convention Center Authority for preconstruction activities, 
     project management, design, or construction.
       ``(2) Any contract entered into by the District of Columbia 
     Water and Sewer Authority established pursuant to the Water 
     and Sewer authority Establishment and Department of Public 
     Works Reorganization Act of 1996, other than contracts for 
     the sale or lease of the Blue Plains Wastewater Treatment 
     Plant.
       ``(3) At the option of the Council, any contract for a 
     highway improvement project carried out under title 23, 
     United States Code.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply with respect to contracts entered into on or 
     after the date of the enactment of this Act.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Virginia [Mr. Davis] and the gentleman from Maine [Mr. Allen] each will 
control 20 minutes.
  The Chair recognizes the gentleman from Virginia [Mr. Davis].
  Mr. DAVIS of Virginia. Mr. Speaker, I yield myself such time as I may 
consume.
  (Mr. DAVIS of Virginia asked and was given permission to revise and 
extend his remarks and include extraneous material.)
  Mr. DAVIS of Virginia. Mr. Speaker, this bill is a very small matter 
for us, but it is urgently needed for the District of Columbia Council 
and two of its independent agencies charged with the important issue of 
water and sewer service and construction of a new convention center.
  This legislation was introduced late in the 104th Congress and fell 
through the cracks in our rush to adjournment. I appreciate the 
gentleman from Indiana [Mr. Burton], the chairman, and the gentleman 
from California [Mr. Waxman], the ranking member, being willing to 
allow this measure to come before the House outside the regular 
process. Mr. Speaker, my thanks to Chairman Burton for permitting 
expeditious consideration of this bill.
  H.R. 513, the District of Columbia Council Review Reform Act, is an 
important bill for the city's recovery. It enables two independent 
agencies, the Washington Convention Center Authority, and the District 
of Columbia Water and Sewer Authority, to carry out their mission in a 
more efficient and cost-effective manner. Timely passage

[[Page H775]]

of this bill is of the essence in particular for the Convention Center 
Authority so as to avoid delays by taking full advantage of the 
construction season.
  For many years the council has sought authority to review city 
contracts in excess of $1 million. The council had numerous times 
passed legislation to accomplish this objective but had been unable to 
override executive vetoes. Congress was eventually asked to resolve 
this dispute, and we did so with the passage of the 1995 District of 
Columbia Financial Responsibility and Management Assistance Authority, 
Public Law 104-8. This legislation, establishing the control board, 
requires in section 304 that no contract involving expenditures in 
excess of $1 million during a 12-month period may be made unless the 
mayor submits the contract to the council for its approval and the 
council approves the contract.
  The District of Columbia Convention Center Authority and the District 
of Columbia Water and Sewer Authority were created as independent 
entities in order to remove them to the fullest extent possible from 
the political process. They are both key elements in our continuing 
efforts to reform essential city services and help restore confidence 
of the private sector.
  The Convention Center Authority was created by the D.C. City Council 
in 1994, and the Water and Sewer Authority in 1996. In 1995, Congress 
passed legislation to permit the Convention Center Authority to expend 
certain revenues for its operation and maintenance. And in 1996 
Congress passed legislation facilitating as well the operation of the 
new Water and Sewer Authority.
  A consequence of the Convention Center Authority legislation became 
apparent when it sought to contract for a project manager. The law was 
interpreted as prohibiting discretion on the part of the council, and 
requiring review. At that point the losing bidders commenced lobbying 
the council to overturn the decision of the Convention Center 
Authority, which had already been endorsed by the control board. While 
the contract was eventually approved, precious time and effort were 
needlessly expended. The same consequence would apply to Water and 
Sewer Authority contracts.
  When the inadvertent application of the control board legislation to 
both the Convention Center Authority and the Water and Sewer Authority 
was realized, efforts were made to rectify the situation. H.R. 3664, 
the District of Columbia Government Improvement and Efficiency Act of 
1996, included a section exempting all contracts entered into by the 
Washington Convention Center Authority and the District of Columbia 
Water and Sewer Authority from review by the city council. This section 
also authorized the city council to exempt highway projects carried out 
under title 23 of the United States Code. But H.R. 3664, though it was 
marked up by both my subcommittee and the full Government Reform and 
Oversight Committee, was unable to move forward due to a disagreement 
which arose on a completely different section of the bill.
  This bill is necessary in order to avoid unnecessary delays in the 
very important work of the Convention Center Authority and the Water 
and Sewer Authority and to allow the council to eliminate delays in 
awarding highway contracts for bids already approved by the Federal 
Highway Administration. H.R. 513 removes the potential for Convention 
Center Authority and Water and Sewer Authority contracts to be handled 
in a way opposite the one that clearly is intended by the creation of 
these independent entities.
  After consultation with the city council, the bill authorizes the 
council to change the way it handles Federal highway projects so as to 
conform local practice to the practice that exists in most States. The 
city council has indicated that it would like to establish such a 
process. This is presently prohibited because the control board 
legislation requiring council review of contracts is a Federal law and 
the council cannot change it.
  All of the contracts referred to in this legislation are still 
subject to review by the control board. The Congressional Budget Office 
has certified that this bill would not affect the Federal budget.
  Mr. Speaker, I urge passage of H.R. 513.
  Mr. Speaker, I include the following for the Record:

      Committee on Government Reform and Oversight--Briefing Memo

       On Thursday, March 6, 1997, at 10:00 a.m., H.R. 513, is 
     scheduled for floor action on the Suspension Calendar. This 
     bill, the District of Columbia Council Contract Review Reform 
     Act of 1997, is sponsored by Subcommittee Chairman Tom Davis 
     and Ranking Member Eleanor Holmes Norton of the House 
     District of Columbia Oversight Subcommittee of the Committee 
     on Government Reform and Oversight. The purpose of the bill 
     is to exempt certain contracts entered into by the District 
     of Columbia government from review by the District Council.
       H.R. 513 was introduced on February 4, 1997, and referred 
     to the Government Reform and Oversight Committee. Chairman 
     Dan Burton agreed to expeditious consideration of the bill on 
     the Suspension Calendar. There is no known opposition to the 
     bill. The Congressional Budget Office has certified in 
     writing that the bill does not effect the federal budget.
       H.R. 513 is necessary at this time in order to facilitate 
     the clear intention of Congress in its passage of legislation 
     establishing the control board (P.L. 104-8), and the 
     legislation creating the Washington Convention Center 
     Authority and the District of Columbia Water and Sewer 
     Authority. Timely passage of this bill is particularly 
     essential for the Convention Center Authority so as to avoid 
     delays by taking full advantage of the construction season.
       For many years the District of Columbia Council had sought 
     authority to review City contracts in excess of $1 million. 
     Legislation to accomplish this objective was repeatedly 
     vetoed by the Mayor. The Council was unable to override these 
     vetoes. Congress was asked to resolve the matter and sought 
     to do so with passage of P.L. 104-8 in 1995, the District of 
     Columbia Financial Responsibility and Management Assistance 
     Authority. This landmark legislation, establishing the 
     control board, requires in Section 304 that no contract 
     involving expenditures in excess of $1 million during a 12 
     month period may be made unless the Mayor submits the 
     contract to the Council for its approval and the Council 
     approves the contract. Section 304 is mandatory, not 
     discretionary.
       It soon became apparent that the mandatory, all-inclusive 
     nature of Section 304 of P.L. 104-8 created serious problems 
     in particular for the Convention Center Authority. The 
     Washington Convention Center Authority, and the District of 
     Columbia Water and Sewer Authority were created as 
     independent entities in order to remove them to the 
     fullest extent possible from the political process. They 
     are both key elements in continuing efforts by Congress to 
     reform essential City services and help restore confidence 
     in the private sector.
       The Convention Center Authority was created by the D.C. 
     Council in 1994, and the Water and Sewer Authority in 1996. 
     In 1995 Congress passed the District of Columbia Convention 
     Center and Sports Arena Authorization Act of 1995 to permit 
     the Convention Center Authority to expend certain revenues 
     for its operation and maintenance. And in 1996 Congress 
     passed the District of Columbia Water and Sewer Authority Act 
     of 1996 to authorize the issuance of bonds with respect to 
     water and sewer facilities.
       When the Convention Center Authority proceeded to contract 
     for a Project Manager the adverse consequences of requiring 
     Council review became apparent. Though the contract had been 
     approved by the control board the losing bidders appealed to 
     the Council to overturn the decision. The contract was 
     eventually approved, but precious time and energy were 
     wasted.
       When the inadvertent application of the control board 
     legislation to both the Convention Center Authority and the 
     Water and Sewer Authority was realized last year steps were 
     taken to rectify the situation. H.R. 3664, the District of 
     Columbia Government Improvement and Efficiency Act of 1996 
     included a section exempting all contracts entered into by 
     the Convention Center Authority and the Water and Sewer 
     Authority from review by the City Council. This section of 
     H.R. 3664 also authorized the City Council to exempt highway 
     projects carried out under Title 23 of the U.S. Code. But 
     H.R. 3664, though it was marked-up by both the House District 
     Oversight Subcommittee and the Government Reform and 
     Oversight Committee, was unable to move forward due to a 
     disagreement which arose on a completely different section of 
     the bill.
       H.R. 513 also authorizes the District of Columbia City 
     Council to change the way it handles Federal highway projects 
     so as to conform local practice to the practice that exists 
     in most states. After consultation with the City Council it 
     was concluded that they would favor establishing such a 
     process. They are prohibited from doing so now because the 
     control board legislation requiring Council review of 
     contracts is a federal law and the Council cannot change it.
       All of the contracts referred to in this legislation are 
     still subject to review by the control board.

  Mr. Speaker, I reserve the balance of my time.
  Mr. ALLEN. Mr. Speaker, I yield myself such time as I may consume.
  (Mr. ALLEN asked and was given permission to revise and extend his 
remarks.)

[[Page H776]]

  Mr. ALLEN. Mr. Speaker, H.R. 513 is a bipartisan bill authored by the 
District of Columbia Subcommittee's chairman, the gentleman from 
Virginia [(Mr. Davis], and the gentlewoman from the District of 
Columbia [Ms. Norton], its ranking member. It would simply exempt 
contracts over $1 million entered into by the District's Water and 
Sewer Authority and Convention Center Authority from review and 
approval by the city council. These two authorities were established by 
the Council during the last 2 years as corporate bodies with a legal 
existence apart from the District government. Each authority has its 
own board of directors, financial system, and revenue sources. Their 
independence was an essential element of their design, and it is 
critical to the realization of their respective missions.
  Two years ago, Congress approved legislation developed by the D.C. 
Subcommittee establishing the District of Columbia Financial 
Responsibility and Management Assistance Authority, Public Law 104-8. 
This bill contained a provision amending the District's home rule 
charter to require council review of all contracts over $1 million. 
This was done in order to inject greater control and accountability 
into the District's procurement process.
  It has since been learned through consultation with various financial 
advisers that we could lower the risk associated with any borrowing by 
the two authorities and thereby reduce their borrowing costs if we 
insulated the larger contracts of the two authorities from the review 
process and the politics which sometimes affect it.
  Finally, the bill would permit the city council at its option to 
exempt from its review any Federal aid highway program contract over $1 
million. The council has indicated that it would prefer to annually 
approve a schedule of projects to be undertaken under this program 
rather than consider project contracts on an individual basis. This 
approach will expedite the procurement process and ensure work can get 
started during the construction season.
  I should point out that all of the contracts which this bill will 
exempt from council review will still be subject to review and approval 
by the District's Financial Authority, the Control Board. The authority 
will ensure that they have been executed appropriately and are 
consistent with the District's budget and financial plan.
  Mr. Speaker, it is clear that this bill does nothing more than 
streamline an administrative review process of the council. It enjoys 
the support of the District's local officials. Accordingly, I urge its 
approval by this body.
  Mr. ALLEN. Mr. Speaker, I have no further requests for time, and I 
yield back the balance of my time.
  Mr. DAVIS of Virginia. Mr. Speaker, I have no further requests for 
time, and I yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Virginia [Mr. Davis] that the House suspend the rules 
and pass the bill, H.R. 513.
  The question was taken.
  Mr. DAVIS of Virginia. Mr. Speaker, on that I demand the yeas and 
nays.
  The yeas and nays were ordered.
  The SPEAKER pro tempore. Pursuant to clause 5 of rule I and the 
Chair's prior announcement, further proceedings on this motion will be 
postponed.

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