I 

116TH CONGRESS 

1ST SESSION H. R. 5247 

To require prime contractors under Federal construction contracts to notify 

the Government of changes in certain subcontractors performing work 

under the contract. 

IN THE HOUSE OF REPRESENTATIVES 

NOVEMBER 21, 2019 

Mr. PETERS introduced the following bill; which was referred to the 

Committee on Oversight and Reform 

A BILL 

To require prime contractors under Federal construction contracts to notify the Government of changes in certain 

subcontractors performing work under the contract. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Stop Unfair Bid Shop5 ping Act of 2019’’ or the ‘‘SUBS Act’’. 


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1 SEC. 2. REQUIREMENT TO NOTIFY GOVERNMENT OF 

2 CHANGES TO SUBCONTRACTORS UNDER 

3 CONSTRUCTION CONTRACTS. 

4 (a) REQUIREMENT.—An agency awarding a construc5 tion contract using sealed bid procedures in an amount 

6 greater than $1,500,000 shall— 

7 (1) require an offeror for the contract to in8 clude a list in the offer that includes— 

9 (A) each subcontractor that the offeror in10 tends to use in the performance of the contract, 

11 for any subcontract expected to be awarded in 

12 excess of $100,000; and 

13 (B) any work estimated to cost in excess of 

14 $100,000 that will solely be performed by the 

15 prime contractor for the contract; 

16 (2) include a clause in the contract requiring 

17 that the prime contractor shall submit to the agency 

18 a written notification of— 

19 (A) any subcontractor substituted after the 

20 award of the contract for a subcontractor listed 

21 under paragraph (1)(A), along with an updated 

22 estimate for the cost of performing the work as23 sociated with the substituted subcontractor; and 

24 (B) any subcontract entered into for work 

25 listed under paragraph (1)(B). 


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1 (b) MODIFICATION TO CONTRACT.—In the case of a 

2 construction contract covered by subsection (a), if the 

3 prime contractor notifies the agency of a substituted sub4 contractor under subsection (a)(2) and the cost of per5 forming the work associated with the substituted con6 tractor is estimated to cost 10 percent or greater less than 

7 the cost for performing such work as bid, the contracting 

8 officer for the contract may modify the contract to reduce 

9 the amount of the contract award to take into account 

10 the substitution of subcontractor. 

11 (c) AGENCY DEFINED.—In this section, the term 

12 ‘‘agency’’— 

13 (1) has the meaning given the term ‘‘executive 

14 agency’’ in section 133 of title 41, United States 

15 Code; 

16 (2) does not include the Department of Defense 

17 or any military department; and 

18 (3) includes the United States Army Corps of 

19 Engineers. 

20 (d) REVISION OF FEDERAL ACQUISITION REGULA21 TION.— 

22 (1) IN GENERAL.—Not later than 180 days 

23 after the date of the enactment of this section, the 

24 Federal Acquisition Regulation shall be revised to 

25 provide for the implementation of this section. 


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1 (2) NOTICE AND COMMENT.—There shall be 

2 provided a public notice and comment period of not 

3 less than 60 days. 

4 (3) FINAL RULE.—Any final rule promulgated 

5 pursuant to this subsection shall take effect 30 days 

6 after the date on which the final rule is published 

7 in the Federal Register. 

8 (e) EFFECTIVE DATE.—This Act shall apply with re9 spect to contracts awarded on or after the date occurring 

10 180 days after the date of the enactment of this Act. 

Æ 


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