[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.
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