House Approves Three Contracting Bills The House has voted to create a governmentwide database of contractor misconduct, but sponsors dropped a provision that would have required automatic suspension and debarment proceedings against any company found guilty of two violations within a three-year period. H.R. 3033, the Contractor and Federal Spending Accountability Act, was approved by voice vote on April 23. It calls for creation of a database including legal proceedings brought by federal and state governments against contractors. It will record suspensions and debarments, whether contracts have been terminated for cause, and any previous finding by contracting officials that a company does not have a satisfactory record of integrity and business ethics. It would not include accusations that have not yet been adjudicated. All contracting officers will have access to the data. As originally drafted, the bill included a “two strikes and you’re out’’ provision that would have required initiation of suspension or debarment proceedings against any company that was convicted of two offenses which otherwise would be a cause for debarment within three years. Rep. Tom Davis, R-VA, warned that the provision could bar some large contractors who are working on many different contracts. The prime sponsor, Rep. Carolyn Maloney, D-N.Y., agreed to remove the “two strikes” provision, and Davis supported the final bill. It requires a contracting officer to justify in writing why he awarded a contract to a company that was a repeat offender. The database would include civil, criminal and administrative findings by federal and state governments that result in a finding of fault and a payment of $5,000 or more to the government within the previous five years. In addition to federal suspensions and debarments and related administrative agreements, it would include contract terminations for default by the contractor, and final determinations that a prospective contractor is not a responsible source. “Currently the Federal Government’s watchdogs, the federal suspension and debarment officials, lack the information that they need to protect our business interests and taxpayers’ dollars,” Maloney said. “This system will give government procurement officers who are making these decisions more information about the qualifications and track records of the contractors.” Sen. Claire McCaskill, D-MO, has introduced a similar bill in the Senate. Government Funding Transparency Act The same day the House approved legislation requiring certain contractors to disclose the salaries of their top five executives. H.R. 3928, the Government Funding Transparency Act, applies only to companies and nonprofits receiving more than $25 million annually in federal funds and receiving 80% of their revenue from the federal government. The sponsor, Rep. Christopher Murphy, D-CT, said it would require privately held firms to disclose the same executive pay information that is required of publicly traded companies. Murphy introduced the bill after the CEO of security contractor Blackwater declined to reveal his salary. Close the Contractor Fraud Loophole Act The House also approved legislation that would close a loophole in a new rule requiring contractors to confess to fraud and overbilling. When the administration published the rule, it exempted contracts performed overseas and contracts for commercial items. The bill would apply the disclosure rule to all contracts.