[Congressional Record Volume 148, Number 105 (Monday, July 29, 2002)]
[Extensions of Remarks]
[Page E1439]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




               THE CONTRACTOR ACCOUNTABILITY ACT OF 2002

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                        HON. CAROLYN B. MALONEY

                              of new york

                    in the house of representatives

                         Friday, July 26, 2002

  Mrs. MALONEY of New York. Mr. Speaker, today I introduce legislation 
that will fortify the current Federal debarment system. The United 
States is the largest consumer in the world and invests over $215 
billion in goods and services annually.
  Yet the Federal government's watchdogs, the Federal suspension and 
debarment officials, currently lack the information they need to 
protect our business interests. We have no central way of accounting 
for the performance of our purchases. Beyond a listing of currently 
debarred or suspended persons, officials are limited to their 
individual agency's knowledge of an entity's track record, press 
reports and personal contacts with other agencies. The American 
public's knowledge is limited even further. Often times this allows 
Federal contractors and assistance recipients to repeatedly violate 
Federal law yet still receive millions of dollars from the Federal 
government. In a time when corporate accounting scandals are being 
revealed at an unprecedented pace, isn't it wise to have a full 
accounting of the Federal government's investments?
  A recent report conducted by the Project on Government Oversight 
(POGO) discovered that 16 of the 43 top Federal contractors (based on 
total contract dollars received) have a total of 28 criminal 
convictions. The top 4 contractors have at least 2 criminal convictions 
since 1990.
  The Contractors Accountability Act of 2002 establishes a centralized 
database on actions taken against Federal contractors and assistance 
participants, requiring a description of each of these actions. This 
will provide debarring officials with the information they need to 
protect the business interests of the United States. It places the 
burden of proving responsibility and subsequent eligibility for 
contracts or assistance on the person seeking contracts or assistance 
should they have been previously convicted of two exact or similar 
violations that constitutes a charge for debarment. Additionally, it 
improves/clarifies the role of the Interagency Committee on Debarments 
and Suspension and provides for retention by the prosecuting Federal 
agency of fines paid by offender for reimbursement of costs associated 
with suspension and debarment activities.

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