SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Government Neutrality in Contracting 
Act''.

SEC. 2. PURPOSES.

    It is the purpose of this Act to--
            (1) promote and ensure open competition on Federal and 
        federally funded or assisted construction projects;
            (2) maintain Federal Government neutrality towards the 
        labor relations of Federal Government contractors on Federal 
        and federally funded or assisted construction projects;
            (3) reduce construction costs to the Federal Government and 
        to the taxpayers;
            (4) expand job opportunities, especially for small and 
        disadvantaged businesses; and
            (5) prevent discrimination against Federal Government 
        contractors or their employees based upon labor affiliation or 
        the lack thereof, thereby promoting the economical, 
        nondiscriminatory, and efficient administration and completion 
        of Federal and federally funded or assisted construction 
        projects.

SEC. 3. PRESERVATION OF OPEN COMPETITION AND FEDERAL GOVERNMENT 
              NEUTRALITY.

    (a) Prohibition.--
            (1) General rule.--The head of each executive agency that 
        awards any construction contract after the date of enactment of 
        this Act, or that obligates funds pursuant to such a contract, 
        shall ensure that the agency, and any construction manager 
        acting on behalf of the Federal Government with respect to such 
        contract, in its bid specifications, project agreements, or 
        other controlling documents does not--
                    (A) require or prohibit a bidder, offeror, 
                contractor, or subcontractor from entering into, or 
                adhering to, agreements with 1 or more labor 
                organization, with respect to that construction project 
                or another related construction project; or
                    (B) otherwise discriminate against a bidder, 
                offeror, contractor, or subcontractor because such 
                bidder, offeror, contractor, or subcontractor--
                            (i) became a signatory, or otherwise 
                        adhered to, an agreement with 1 or more labor 
                        organization with respect to that construction 
                        project or another related construction 
                        project; or
                            (ii) refused to become a signatory, or 
                        otherwise adhere to, an agreement with 1 or 
                        more labor organization with respect to that 
                        construction project or another related 
                        construction project.
            (2) Application of prohibition.--The provisions of this 
        section shall not apply to contracts awarded prior to the date 
        of enactment of this Act, and subcontracts awarded pursuant to 
        such contracts regardless of the date of such subcontracts.
            (3) Rule of construction.--Nothing in paragraph (1) shall 
        be construed to prohibit a contractor or subcontractor from 
        voluntarily entering into an agreement described in such 
        paragraph.
    (b) Recipients of Grants and Other Assistance.--The head of each 
executive agency that awards grants, provides financial assistance, or 
enters into cooperative agreements for construction projects after the 
date of enactment of this Act, shall ensure that--
            (1) the bid specifications, project agreements, or other 
        controlling documents for such construction projects of a 
        recipient of a grant or financial assistance, or by the parties 
        to a cooperative agreement, do not contain any of the 
        requirements or prohibitions described in subparagraph (A) or 
        (B) of subsection (a)(1); or
            (2) the bid specifications, project agreements, or other 
        controlling documents for such construction projects of a 
        construction manager acting on behalf of a recipient or party 
        described in paragraph (1) do not contain any of the 
        requirements or prohibitions described in subparagraph (A) or 
        (B) of subsection (a)(1).
    (c) Failure To Comply.--If an executive agency, a recipient of a 
grant or financial assistance from an executive agency, a party to a 
cooperative agreement with an executive agency, or a construction 
manager acting on behalf of such an agency, recipient, or party, fails 
to comply with subsection (a) or (b), the head of the executive agency 
awarding the contract, grant, or assistance, or entering into the 
agreement, involved shall take such action, consistent with law, as the 
head of the agency determines to be appropriate.
    (d) Exemptions.--
            (1) In general.--The head of an executive agency may exempt 
        a particular project, contract, subcontract, grant, or 
        cooperative agreement from the requirements of 1 or more of the 
        provisions of subsections (a) and (b) if the head of such 
        agency determines that special circumstances exist that require 
        an exemption in order to avert an imminent threat to public 
        health or safety or to serve the national security.
            (2) Special circumstances.--For purposes of paragraph (1), 
        a finding of ``special circumstances'' may not be based on the 
        possibility or existence of a labor dispute concerning 
        contractors or subcontractors that are nonsignatories to, or 
        that otherwise do not adhere to, agreements with 1 or more 
        labor organization, or labor disputes concerning employees on 
        the project who are not members of, or affiliated with, a labor 
        organization.
            (3) Additional exemption for certain projects.--The head of 
        an executive agency, upon application of an awarding authority, 
        a recipient of grants or financial assistance, a party to a 
        cooperative agreement, or a construction manager acting on 
        behalf of any of such entities, may exempt a particular project 
        from the requirements of any or all of the provisions of 
        subsections (a) or (c) if the agency head finds--
                    (A) that the awarding authority, recipient of 
                grants or financial assistance, party to a cooperative 
                agreement, or construction manager acting on behalf of 
                any of such entities had issued or was a party to, as 
                of the date of the enactment of this Act, bid 
                specifications, project agreements, agreements with one 
                or more labor organizations, or other controlling 
                documents with respect to that particular project, 
                which contained any of the requirements or prohibitions 
                set forth in subsection (a)(1); and
                    (B) that one or more construction contracts subject 
                to such requirements or prohibitions had been awarded 
                as of the date of the enactment of this Act.
    (e) Federal Acquisition Regulatory Council.--With respect to 
Federal contracts to which this section applies, not later than 60 days 
after the date of enactment of this Act, the Federal Acquisition 
Regulatory Council shall take appropriate action to amend the Federal 
Acquisition Regulation to implement the provisions of this section.
    (f) Definitions.--In this section:
            (1) Construction contract.--The term ``construction 
        contract'' means any contract for the construction, 
        rehabilitation, alteration, conversion, extension, or repair of 
        buildings, highways, or other improvements to real property.
            (2) Executive agency.--The term ``executive agency'' has 
        the meaning given such term in section 105 of title 5, United 
        States Code, except that such term shall not include the 
        Government Accountability Office.
            (3) Labor organization.--The term ``labor organization'' 
        has the meaning given such term in section 701(d) of the Civil 
        Rights Act of 1964 (42 U.S.C. 2000e(d)).
Government Neutrality in Contracting Act - Directs the head of any federal agency that awards or obligates funds for any construction contract, or that awards grants, provides financial assistance, or enters into cooperative agreements for construction projects, to ensure that bid specifications, project agreements, or other controlling documents do not: (1) require or prohibit a bidder, offeror, contractor, or subcontractor from entering into, or adhering to, agreements with a labor organization, with respect to that construction project or another related construction project; or (2) otherwise discriminate against such a party because it did or did not become a signatory or otherwise adhere to such an agreement.

Allows exemptions to avert an imminent threat to public health or safety or to serve national security. Allows additional exemptions for certain projects. Directs the Federal Acquisition Regulatory Council to amend the Federal Acquisition Regulation to implement this Act with respect to the applicable federal contracts.
A bill to preserve open competition and Federal Government neutrality towards the labor relations of Federal Government contractors on Federal and federally funded construction projects.