[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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