[Congressional Record Volume 143, Number 111 (Thursday, July 31, 1997)]
[Senate]
[Pages S8550-S8551]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. DURBIN:
  S. 1098. A bill to provide for the debarment or suspension from 
Federal procurement and nonprocurement activities of persons that 
violate certain labor and safety laws; to the Committee on Governmental 
Affairs.


          THE FEDERAL PROCUREMENT AND ASSISTANCE INTEGRITY ACT

  Mr. DURBIN. Mr. President, I am pleased today to introduce 
legislation to improve the efficiency and protect the integrity of 
Federal procurement and assistance programs, by ensuring that the 
Federal Government does business with responsible contractors and 
participants.
  The United States General Accounting Office [GAO] has found that 
billions

[[Page S8551]]

of dollars in Federal procurement contracts and assistance are going to 
individuals and corporations which are violating our nation's labor and 
employment laws. In 1995, the GAO reported that more than $23 billion 
in Federal contracts were awarded in fiscal year 1993 to contractors 
who violated labor laws. That is 13 percent of the $182 billion in 
Federal contracts awarded that year. Part of the reason for this, the 
GAO found, is that the National Labor Relations Board, which enforces 
our nation's labor laws, does not know whether violators of the law are 
receiving Federal contracts. And the General Services Administration, 
which oversees Federal procurement, does not know the labor relations 
records of Federal contractors.
  Last year, the GAO reported that $38 billion in Federal contracts in 
fiscal year 1994 were awarded to contractors who had violated workplace 
health and safety laws. That is 22 percent of the $176 billion in 
Federal contracts of $25,000 or more which were awarded that year. The 
GAO found that 35 people died and 55 more people were hospitalized in 
fiscal year 1994 as a result of injuries at the workplaces of federal 
contractors who violated health and safety laws. These contractors were 
assessed a total of $10.9 million in penalties in fiscal year 1994--
while being awarded $38 billion in Federal contracts.
  The GAO concluded that, although federal agencies have the authority 
to deny contracts and federal assistance to companies that violate 
Federal laws, this authority is rarely used in the case of safety and 
health violations. The GAO found that federal agencies do not normally 
collect or receive information about which contractors are violating 
health and safety laws--even when contractors have been assessed large 
penalties for egregious or repeat violations.
  The Federal Government should not ignore the health and safety 
records of companies that apply for federal contracts and assistance. A 
report published this week in the Archives of Internal Medicine 
concludes that job-related injuries and illnesses in the United States 
are more common than previously thought, costing the nation more than 
AIDS, Alzheimer's, cancer or heart disease. The report, which analyzed 
national estimates of job-related illnesses and injuries in 1992, 
states that more than 13 million Americans were injured from job-
related causes in just one year--more than four times the number of 
people who live in the City of Chicago. The report concluded that the 
cost to our country from workplace injuries and illnesses was $171 
billion in 1992.
  The Federal Government has a responsibility to taxpayers, working 
Americans and law-abiding businesses, to ensure that federal tax 
dollars do not go to individuals and corporations that violate safety 
and health, labor and veterans' employment preference laws. About 26 
million Americans are employed by federal contractors and 
subcontractors. They deserve to know that their Government is not 
rewarding employers who violate the laws that protect American workers 
and veterans.
  The legislation I am introducing today will improve the enforcement 
of our nation's health and safety, labor and veterans' employment laws, 
and provide an incentive to contractors to comply with the law. This 
legislation will allow the Secretary of Labor to debar or suspend a 
person from receiving Federal contracts or assistance for violating the 
National Labor Relations Act, the Fair Labor Standards Act, the 
Occupational Safety and Health Act or the disabled and Vietnam-era 
veterans hiring preference law. It will require the Secretary of Labor 
and the National Labor Relations Board to develop procedures to 
determine whether a violation of law is serious enough to warrant 
debarment or suspension. And, as recommended by the GAO, this 
legislation will require ongoing exchanges of information among Federal 
agencies to improve their ability to enforce our nation's laws. This 
legislation is identical to a bill introduced in the House of 
Representatives by Congressman Lane Evans of Illinois, and it is 
similar to legislation introduced in previous years by former Senator 
Paul Simon.
  Mr. President, it is important to note that the vast majority of 
Federal contractors obey the law. This legislation is only directed at 
those who are violating the law. It will deny Federal contracts and 
assistance to individuals and companies that violate the law and ensure 
that Federal contracts are awarded to companies that respect the law.
  I urge my colleagues to join me in supporting this legislation, and I 
ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1098

       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 ``Federal Procurement and 
     Assistance Integrity Act''.

     SEC. 2. PURPOSE.

       The purpose of this Act is to improve the efficiency and 
     effectiveness and protect the integrity of the Federal 
     procurement and assistance systems by ensuring that the 
     Federal Government does business with responsible contractors 
     and participants.

     SEC. 3. DEBARMENT AND SUSPENSION FOR VIOLATORS OF CERTAIN 
                   LABOR AND SAFETY LAWS.

       (a) Debarment and Suspension.--The Secretary of Labor may 
     debar or suspend a person from procurement activities or 
     nonprocurement activities upon a finding, in accordance with 
     procedures developed under this section, that the person 
     violated any of the following laws:
       (1) The National Labor Relations Act (29 U.S.C. 151 et 
     seq.).
       (2) The Fair Labor Standards Act of 1938 (29 U.S.C. 201 et 
     seq.).
       (3) The Occupational Safety and Health Act (29 U.S.C. 651 
     et seq.).
       (4) Section 4212(a) of title 38, United States Code.
       (b) Procedures.--The Secretary of Labor and the National 
     Labor Relations Board shall jointly develop procedures to 
     determine whether a violation of a law listed in subsection 
     (a) is serious enough to warrant debarment or suspension 
     under that subsection. The procedures shall provide for an 
     assessment of the nature and extent of compliance with such 
     laws, including whether there are or were single or multiple 
     violations of those laws or other labor or safety laws and 
     whether the violations occur or have occurred at one 
     facility, several facilities, or throughout the company 
     concerned. In developing the procedures, the Secretary and 
     the Board shall consult with departments and agencies of 
     the Federal Government and provide, to the extent 
     feasible, for ongoing exchanges of information between the 
     departments and agencies and the Department of Labor and 
     the Board in order to accurately carry out such 
     assessments.
       (c) Definitions.--In this section:
       (1) Debar.--The term ``debar'' means to exclude, pursuant 
     to established administrative procedures, from Federal 
     Government contracting and subcontracting, or from 
     participation in nonprocurement activities, for a specified 
     period of time commensurate with the seriousness of the 
     failure or offense or the inadequacy of performance.
       (2) Nonprocurement activities.--The term ``nonprocurement 
     activities'' means all programs and activities involving 
     Federal financial and nonfinancial assistance and benefits, 
     as covered by Executive Order No. 12549 and the Office of 
     Management and Budget guidelines implementing that order.
       (3) Procurement activities.--The term ``procurement 
     activities'' means all acquisition programs and activities of 
     the Federal Government, as defined in the Federal Acquisition 
     Regulation.
       (4) Suspend.--The term ``suspend'' means to disqualify, 
     pursuant to established administrative procedures, from 
     Federal Government contracting and subcontracting, or from 
     participation in nonprocurement activities, for a temporary 
     period of time because an entity or individual is suspected 
     of engaging in criminal, fraudulent, or seriously improper 
     conduct.
       (d) Effective Date.--This Act shall take effect on October 
     1, 1997.
       (e) Regulations.--The Federal Acquisition Regulation and 
     the regulations issued pursuant to Executive Order No. 12549 
     shall be revised to include provisions to carry out this Act.
       (f) Report.--Not later than 1 year after the date of the 
     enactment of this Act, the Secretary of Labor and the 
     National Labor Relations Board shall jointly submit to 
     Congress a report on the implementation of this Act.
                                 ______