[Congressional Record Volume 156, Number 67 (Thursday, May 6, 2010)]
[Senate]
[Pages S3362-S3363]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. FEINGOLD (for himself and Mr. Coburn):
  S. 3323. A bill to improve the management and oversight of Federal 
contracts, and for other purposes; to the Committee on Homeland 
Security and Governmental Affairs.
  Mr. FEINGOLD. Mr. President, today I am introducing the bipartisan 
Federal Contracting and Oversight Act. Every year millions of taxpayer 
dollars are awarded to contractors with a history of poor performance 
and misconduct because our federal contracting oversight regime, though 
well-intentioned, is broken.
  The problems in our contracting oversight regime were first brought 
to my attention by my constituents in Wisconsin, several of whom are 
small businesses that have suffered as a result of misconduct by a 
Federal contractor. In one case, a Federal contractor that has received 
over $6 million in Federal contracts failed to pay small businesses in 
Wisconsin that worked as subcontractors. Several years later, the Army 
finally barred the contractor from receiving Federal dollars, finding 
that the contractor had ``a documented history of failing to pay 
subcontractors for services rendered pursuant to government 
contracts.'' We must ensure that these records of poor performance and 
misconduct are identified before federal contracts are awarded to 
contractors, not years later after the damage has already been done.
  As I studied the issue further, I learned that similar problems were 
widespread and well documented. The Government Accountability Office 
has documented numerous instances of suspended and debarred companies 
continuing to receive federal contracts. In one case, a company that 
had been debarred for attempting to ship nuclear bomb parts to North 
Korea continued to receive millions of dollars on an Army contract. In 
another case, a contractor that had been suspended after one of its 
employees was found to have sabotaged repairs on an aircraft carrier 
was awarded three new contracts a month after the incident.
  We must act to ensure that these incidents do not repeat themselves. 
American taxpayer dollars should be spent responsibly and the flaws of 
our contracting process should never be allowed to affect our security.
  Our Federal contracting process is in urgent need of reform and 
greater oversight. To that end, I am introducing the Federal 
Contracting and Oversight Act, which is an important step to prevent 
the continued Federal patronage of private companies unworthy of our 
taxpayers' hard-earned dollars.
  I am encouraged that Senator Coburn has also taken note of the flaws 
of the Federal contracting process and has joined me in this effort as 
an original cosponsor. This bill also has the support of experts that 
closely track our federal contracting process, including the Project on 
Government Oversight, the Center for American Progress, Taxpayers for 
Common Sense, and OMB Watch.
  This bill will protect the hard-earned dollars of American taxpayers 
by improving the federal contracting system in three ways:
  First, this bill will make the system more transparent.
  Sunshine continues to be the best disinfectant; unfortunately, some 
of the most important data concerning contractor performance and 
misconduct is shielded from the scrutiny of the full Congress and 
American people.
  This bill will broaden access to the new Federal Awardee Performance 
and Integrity Information System, FAPIIS, database, which contains a 
comprehensive picture of the records of Federal contractors including 
details of criminal, civil, and administrative proceedings, contract 
defaults, suspension and debarments, and other violations of federal 
acquisition laws.
  Under my bill, every member of Congress will be able to access the 
database in order to review the records of contractors. This is an 
important step towards greater transparency in our contracting 
oversight system. Each member of Congress has an interest in monitoring 
how the taxpayer dollars of their constituents are being spent.
  Second, this bill will empower our contracting officers by giving 
them the tools and resources they need to adequately vet companies 
seeking Federal dollars.
  Contracting officers currently make award decisions with only a 
limited set of information that is insufficient to support an informed 
decision. These contracting officers often lack the information they 
need to adequately review a company's contracting history.
  This bill helps ensure that these officers have a more comprehensive 
picture of a company's contracting history before they make an award 
decision. Under this bill, the information available to them will 
include information on a broader range of misconduct, such as that 
occurring over 5 years ago, pertaining to a wider range of contracts or 
resulting in a more inclusive list of legal proceedings. This bill also 
requires companies vying for Federal dollars to self-report essential 
details about their past performance before they can receive a contract 
award. Together, these provisions will help ensure that those officials 
entrusted with awarding Federal contract dollars have all the resources 
they need to make an informed decision.
  Third, this bill will strengthen the current oversight regime by 
fixing loopholes and shortcomings that have undermined its 
effectiveness. An oversight regime can only be effective if it is used, 
and used properly. It is unacceptable that taxpayer dollars continue to 
go to companies that have already been suspended or debarred, just 
because contracting officers have failed to either record or check 
their status.
  Accordingly, this bill tasks the Comptroller General with producing 
an annual report on the extent to which companies that have been 
suspended and debarred continue to receive federal contracts or waivers 
to receive federal contracts. This is an important step towards 
ensuring that the problems in our contracting process receive the 
congressional and public scrutiny they deserve. This bill also requires 
the Inspectors General of each federal agency involved in the 
procurement process to conduct an annual audit to ensure that 
contracting officials are appropriately considering the past 
performance and misconduct of contractors.
  The source of the oversight regime's ineffectiveness also lies in its 
design, which is in need of both consolidation and modernization.
  When contracting officials begin to review a company's contracting 
history, the information they need is spread across numerous databases. 
They have to navigate an unorganized array of databases, including: the 
Excluded Parties List System, Central Contractor Registry, Contractor 
Performance Assessment Reporting System, Federal Assistance Award Data 
System, Federal Awardee Performance

[[Page S3363]]

and Integrity Information System, Federal Business Opportunities 
Database, Federal Procurement Data System-Next Generation, Past 
Performance Information Retrieval System, and USAspending.gov, among 
others.
  We must integrate these databases to ensure that contracting 
officials have a one-stop source for relevant contracting information. 
I am pleased that the General Services Administration has taken some 
positive steps in this direction, but any consolidation must be 
comprehensive. Accordingly, this bill requires the Office of Management 
and Budget to develop and submit a plan to integrate and consolidate 
the nine most important databases into a single searchable and linked 
network.
  Another reason why suspended and debarred companies continue to 
receive federal contracts in error is because the unique identification 
system used to track companies is ineffective and in need of 
modernization. The Government Accountability Office has documented that 
the current identification system fails to adequately track 
subsidiaries, spin-offs, shell companies, and other related entities. 
This weak tracking system permits some suspended and debarred companies 
to access federal dollars to which they are not legally entitled.
  To that end, this bill requires the Inspector General of the General 
Services Administration to determine whether the existing system of 
identifying numbers for contractors is adequately tracking Federal 
contractors, and develop a plan for developing and adopting a new and 
more robust identification system.
  I urge my colleagues to support this bill. The American people 
entrust us with their hard-earned tax dollars, and we have a 
responsibility to ensure that their money is being spent appropriately.
                                 ______