[Congressional Record Volume 145, Number 114 (Thursday, August 5, 1999)]
[Senate]
[Page S10530]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




   AMENDMENT OF THE OFFICE OF FEDERAL PROCUREMENT POLICY ACT AND THE 
                               MILLER ACT

  Mr. BROWNBACK. Mr. President, I ask unanimous consent that the Senate 
now proceed to the consideration of H.R. 1219, which is at the desk.
  The PRESIDING OFFICER. The clerk will report.
  The legislative clerk read as follows:

       A bill (H.R. 1219) to amend the Office of Federal 
     Procurement Policy Act and the Miller Act, relating to 
     payment protections for persons providing labor and materials 
     for Federal construction projects.

  There being no objection, the Senate proceeded to consider the bill.
  Mr. THOMPSON. Mr. President, I am pleased to recommend H.R. 1219, the 
``Construction Industry Payment Protection Act of 1999'' to the full 
Senate for passage. This bill, introduced in the House by a bipartisan 
list of cosponsors, is intended to modernize the Miller Act, one of our 
oldest procurement laws. The Committee on Governmental Affairs, with 
jurisdiction over Federal procurement laws, recognizes and appreciates 
the broad and strong support for this measure.
  The Miller Act is a 1935 law requiring prime contractors with Federal 
construction contracts over $100,000 to provide bonds on those projects 
to protect those providing labor and materials. Currently, the Miller 
Act requires two types of bonds on Federal construction contracts: A 
payment bond to guarantee that subcontractors get paid, limited under 
the 1935 Act to $2.5 million and never adjusted for inflation; and a 
performance bond to protect the Federal government and ensure that the 
project gets finished. This bond is equal to the value of the project.
  H.R. 1219 would amend the Miller Act to require that the payment bond 
be at least equal to the performance bond. It also establishes 
standards by which subcontractor rights under the Miller Act can be 
waived, and it provides for more modern methods by which claims can be 
noticed.
  This bill represents an impressive consensus and several years of 
hard work by all the interested parties: the general contractors, the 
subcontractors, and the surety firms who supply the bonds. In addition, 
the Administration has issued a Statement of Administration Policy in 
support of the measure. Earlier this week, H.R. 1219 passed the House 
by a roll call vote of 416-0. I respectfully urge my colleagues to 
support this measure.
  Mr. BROWNBACK. Mr. President, I ask unanimous consent that the bill 
be read a third time and passed, and the motion to reconsider be laid 
upon the table.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The bill (H.R. 1219) was read the third time and passed.

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