[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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