[Congressional Record Volume 153, Number 61 (Tuesday, April 17, 2007)]
[House]
[Pages H3416-H3417]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




AUTHORIZING PAYMENT FOR SERVICES RENDERED BY SUBCONTRACTORS FOR WORK TO 
               BE COMPLETED AT GRAND CANYON NATIONAL PARK

  Mr. GRIJALVA. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 1191) 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, as amended.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 1191

       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. AUTHORIZATION.

       The Secretary is authorized, subject to the appropriation 
     of such funds as may be necessary, to pay the amount owed to 
     the 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. Grijalva) and the gentleman from New Mexico (Mr. Pearce) 
each will control 20 minutes.
  The Chair recognizes the gentleman from Arizona.


                             General Leave

  Mr. GRIJALVA. Mr. Speaker, I ask unanimous consent that all Members 
have 5 legislative days to revise and extend and include extraneous 
material on the bill under consideration.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Arizona?
  There was no objection.
  Mr. GRIJALVA. Mr. Speaker, during fiscal years 2002 and 2003, Grand 
Canyon National Park entered into construction contracts worth $17 
million with a general contractor called Pacific General, Incorporated, 
known as PGI.
  In January 2004, numerous subcontractors employed by PGI notified 
National Park Service that they were not receiving payment. After an 
investigation, it was discovered that PGI was diverting Federal funds 
which should have gone to the subcontractors. PGI eventually declared 
bankruptcy.
  It was further discovered that in a clear violation of Federal 
policies, the park had failed to require PGI to post a surety bond as a 
condition of the contract. The agency is now prohibited from paying the 
subcontractors directly because the funds appropriated for those 
contracts have already been paid to PGI. Overall, the subcontractors 
are owed about $1.3 million. H.R. 1191 authorizes the Secretary to use 
$1.3 million in available funds from Grand Canyon National Park to pay 
the subcontractors. Applicants for the funds would have to verify the 
amount they are owed, demonstrate that they have exhausted all 
reasonable legal avenues to recoup amounts owed to them by PGI, and 
provide written statements that the amount they are seeking represents 
payment in full.
  Mr. Speaker, this is an imperfect solution to a difficult problem. 
However, these small business owners who provided quality services to 
the Federal Government in good faith should not have to wait any longer 
to receive payment.
  My colleague from Arizona, Representative Renzi, is to be commended 
for his efforts on behalf of these small business people. Similar 
legislation

[[Page H3417]]

was approved by the House in the 109th Congress, and we urge its 
passage today.
  Mr. Speaker, I reserve the balance of my time.
  Mr. PEARCE. Mr. Speaker, I rise to thank the majority, Mr. Grijalva, 
for his support of H.R. 1191, and I would yield such time as he may 
consume to the distinguished author of the bill, the gentleman from 
Arizona (Mr. Renzi), who has worked tirelessly for 4 years on this 
bill.
  Mr. RENZI. Mr. Speaker, I want to thank my chairman and colleague 
from Arizona (Mr. Grijalva) and my neighbor from New Mexico (Mr. 
Pearce) for their assistance and support in helping us find a solution 
finally today.
  It has been 4 years in the making. I thank you, Mr. Grijalva and Mr. 
Pearce, for being a part of pushing this across the finish line.
  Our intention today is to provide legislation to fix a problem that 
affects almost 40 small business men and women throughout Arizona, 
Utah, New Mexico and the Southwest who are devastated by this 
unfortunate contract mismanagement that the National Park Service and 
Pacific General, Inc. were involved in.
  I know, Mr. Pearce, you remember from last Congress, in helping us 
finish on this, that many of these businesses are bankrupt today. Many 
of their sons and daughters aren't able to go to college because the 
Federal Government owes them money for work that they performed in the 
Grand Canyon. So today, we find a way to fix that with a technical 
correction in order for these subcontractors to get paid.
  Mike Richardson, who is the owner of Southwest Water Works, located 
in Phoenix, Arizona, came before Congress, before your subcommittee 
last session. He testified, and he was able to bring this problem to 
the forefront. His dedicated assistance to bringing this matter before 
Congress should be commended.
  After this time, the Washington Contracting and Procurement Office of 
the National Park Service performed an acquisition management review. 
In this review, the National Park Service discovered that the park had 
failed to ensure that PGI obtained the proper payments and performance 
bonds required by the National Park Service under the Miller Act. Then 
on February 6, 2004, the National Park Service suspended further 
payments to PGI, issued a suspension notice, and ceased activities with 
the contractor.
  Unfortunately, as stated, the subcontractors were not paid for the 
work that they provided to the Federal Government. They fall into two 
categories. The first category consists of subcontractors that 
performed work on various projects where the National Park Service had 
already paid PGI for their work. Up to $1.3 million PGI did not pay to 
subcontractors. I think, as Congressman Grijalva talked about, there 
were $17 million paid overall to the contractor; $1.3 million never 
made its way down to these subcontractors.
  The second category is composed of subcontractors who performed work 
on various projects where the National Park Service failed to pay PGI. 
The National Park Service has been unable to pay these contractors who 
performed the work at Grand Canyon because Federal law prohibits 
payments directly to subcontractors due to a lack of direct contractual 
relationship between the parties.
  This bill today that Mr. Grijalva has championed, and Mr. Pearce, 
fixes this grave inequity.
  I thank you so very much for your leadership, Mr. Grijalva and Mr. 
Pearce. I appreciate your service, and understanding these are small 
business men and women, Arizona, New Mexico and Utah, that will benefit 
from your leadership on this bill.
  Mr. PEARCE. Mr. Speaker, I would yield back the balance of my time.
  Mr. GRIJALVA. Mr. Speaker, again let me commend the gentleman from 
Arizona (Mr. Renzi) for this legislation.
  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. Grijalva) that the House suspend the rules 
and pass the bill, H.R. 1191, as amended.
  The question was taken; and (two-thirds being in the affirmative) the 
rules were suspended and the bill, as amended, was passed.
  A motion to reconsider was laid on the table.

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