[Congressional Record Volume 152, Number 121 (Monday, September 25, 2006)]
[House]
[Page H6938]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
AUTHORIZING NATIONAL PARK SERVICE TO PAY FOR SUBCONTRACTOR SERVICES
COMPLETED AT GRAND CANYON NATIONAL PARK
Mr. RENZI. Mr. Speaker, I move to suspend the rules and pass the bill
(H.R. 3961) to authorize the National Park Service to pay for services
rendered by subcontractors under a General Services Administration
Indefinite Deliver/Indefinite Quantity Contract issued for work to be
completed at the Grand Canyon National Park.
The Clerk read as follows:
H.R. 3961
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. DEFINITIONS.
As used in this Act, the following definitions apply:
(1) IDIQ.--The term ``IDIQ'' means an Indefinite Deliver/
Indefinite Quantity contract.
(2) Park.--The term ``park'' means Grand Canyon National
Park.
(3) PGI.--The term ``PGI'' means Pacific General, Inc.
(4) Secretary.--The term ``Secretary'' means the Secretary
of the Interior, acting through the Director of the National
Park Service.
SEC. 2. FINDINGS AND PURPOSE.
(a) Findings.--Congress finds the following:
(1) The park issued approximately 40 task orders to PGI
under an IDIQ between fiscal years 2002 and 2003 for a
variety of projects.
(2) The value of these task orders was over $17,000,000 for
various construction projects throughout the park.
(3) According to invoices sent to the park, PGI certified
that proceeds of payments were being sent to subcontractors
and suppliers.
(4) In January 2004, complaints were received by numerous
subcontractors citing lack of payments by PGI.
(5) The National Park Service has paid over $10,000,000 to
PGI, of which an estimated $1,300,000 was owed, but not paid
to subcontractors.
(6) During an acquisition management review conducted by
the Washington Contracting and Procurement Office of the
National Park Service, it was found that the park had failed
to ensure that PGI obtained the necessary payment and
performance bonds required by the IDIQ and the Miller Act (40
U.S.C. 270a).
(7) On February 6, 2004, the National Park Service
suspended further payment to PGI and issued a suspension
notice to cease activity by the contractor.
(8) The National Park Service gave PGI every reasonable
opportunity to resolve the situation, but PGI has effectively
ceased doing business.
(9) Recovery by the Government of that $1,300,000 is
unlikely.
(10) The National Park Service is prohibited from making
payments to a contractor without obtaining payment and
performance bonds.
(11) Contract law generally prohibits payment directly to
subcontractors because of the lack of a direct, contractual
relationship between the parties.
(12) The Federal Government has derived benefits from the
work that has been completed.
(b) Purpose.--The purpose of this Act is to authorize the
Secretary to pay for services rendered by subcontractors that
should have been paid by PGI.
SEC. 3. AUTHORIZATION.
The Secretary is authorized to use $1,300,000 from the
park's entrance fee revenues to pay subcontractors of PGI for
work performed at the park under an IDIQ with PGI between
fiscal years 2002 and 2003 provided that--
(1) the primary contract between PGI and the National Park
Service is terminated;
(2) the amount owed to the subcontractors is verified;
(3) all reasonable legal avenues or recourse have been
exhausted by the subcontractors to recoup amounts owed
directly from PGI; and
(4) the subcontractors provide a written statement that
payment of the amount verified in paragraph (2) represents
payment in full by the United States for all work performed
at the park under the IDIQ with PGI between fiscal years 2002
and 2003.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Arizona (Mr. Renzi) and the gentlewoman from Guam (Ms. Bordallo) each
will control 20 minutes.
The Chair recognizes the gentleman from Arizona.
Mr. RENZI. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, H.R. 3961, authored by myself, would authorize the
National Park Service to pay up to 38 subcontractors for work they
performed at the Grand Canyon National Park during the years 2002 and
2003. To date, these subcontractors still have not been paid a total of
$1.3 million because the primary contractor went out of business. As it
turned out, the primary contractor was not bonded, a fact that the
National Park Service does not dispute. The Park Service has indicated
it has the money and wishes to make the contractors whole, but requires
a congressional directive to do so.
I thank the gentleman from New Mexico (Mr. Pearce) whose perseverance
on this issue has allowed us to get to this point today in helping to
resolve the issue. I urge adoption of the bill.
Mr. Speaker, I reserve the balance of my time.
Ms. BORDALLO. Mr. Speaker, I yield myself such time as I may consume.
(Ms. BORDALLO asked and was given permission to revise and extend her
remarks.)
Ms. BORDALLO. Mr. Speaker, first, I wish to thank the gentleman from
Arizona (Mr. Renzi) for his work on this bill. We have no objection to
the consideration of this legislation, H.R. 3961, and urge our
colleagues to support it.
Mr. Speaker, I yield back the balance of my time.
Mr. RENZI. Mr. Speaker, I yield back the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Arizona (Mr. Renzi) that the House suspend the rules and
pass the bill, H.R. 3961.
The question was taken; and (two-thirds having voted in favor
thereof) the rules were suspended and the bill was passed.
A motion to reconsider was laid on the table.
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