I 

108TH CONGRESS 

1ST SESSION H. R. 1348

To assure quality and best value with respect to Federal construction projects 

by prohibiting the practice known as bid shopping. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 19, 2003

Mr. KANJORSKI (for himself and Mr. JEFFERSON) introduced the following 

bill; which was referred to the Committee on Government Reform 

A BILL

To assure quality and best value with respect to Federal 

construction projects by prohibiting the practice known 

as bid shopping.

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 ‘‘Construction Quality 

5 Assurance Act of 2003’’. 

6 SEC. 2. FINDINGS. 

7 Congress finds the following: 

8 (1) Certain abhorrent and undesirable prac9 tices, known as bid shopping, have arisen from time 
2

•HR 1348 IH 

1 to time in construction work for the Federal Govern2 ment. 

3 (2) Bid shopping threatens the integrity of the 

4 procurement of construction services. 

5 (3) The practice of bid shopping deprives tax6 payers of the full benefits of fair competition among 

7 contractors and subcontractors, and often results in 

8 poor quality of material and workmanship to the 

9 detriment of the public. 

10 (4) When bid shopping occurs, the cost savings 

11 gained are not passed on to the Federal Govern12 ment, but the simultaneous reductions in quality and 

13 value are passed on to the Federal Government. 

14 (5) The procurement practices of the Federal 

15 Government should be modified to prohibit bid shop16 ping at any level. 

17 SEC. 3. DEFINITIONS. 

18 In this Act: 

19 (1) CONTRACT.—The term ‘‘contract’’ means 

20 any contract with the Federal Government, exceed21 ing $1,000,000 in amount, for the construction, al22 teration, or repair of any public building or public 

23 work of the United States. 

24 (2) BID SHOPPING.—The term ‘‘bid shopping’’ 

25 means the practice of divulging a contractor’s or 
3

•HR 1348 IH 

1 subcontractor’s bid or proposal or requiring a con2 tractor or subcontractor to divulge its bid or pro3 posal to another prospective contractor or subcon4 tractor before the award of a contract or subcontract 

5 in order to secure a lower bid or proposal. 

6 (3) CONTRACTOR.—The term ‘‘contractor’’ 

7 means an individual or entity that has been awarded 

8 or is seeking to be awarded a construction contract 

9 by the Federal Government. 

10 (4) SUBCONTRACTOR.—The term ‘‘subcon11 tractor’’ means an individual or entity with which an 

12 offeror on a contract proposes to enter into a sub13 contract for manufacturing, supplying, fabricating, 

14 installing, or otherwise performing with respect to 

15 the contract, whether the work is to be performed by 

16 the subcontractor at the construction site or off the 

17 site. 

18 SEC. 4. PROHIBITION AGAINST BID SHOPPING. 

19 (a) PROHIBITION.—Neither the Federal Government, 

20 nor a contractor or subcontractor, shall participate in the 

21 practice of bid shopping with respect to a contract. 

22 (b) NOTICE REQUIREMENT.—Any invitation for bid 

23 or request for proposal issued by the Federal Government 

24 shall include a clause explicitly prohibiting the practice of 
4

•HR 1348 IH 

1 bid shopping and specifying the penalties for violating the 

2 prohibition against bid shopping. 

3 SEC. 5. PENALTIES. 

4 (a) IN GENERAL.—(1) A contract shall provide for 

5 termination of the contract or the imposition of liquidated 

6 damages in the amount described in paragraph (2) upon 

7 a determination by the contracting officer, in accordance 

8 with applicable provisions of the Federal Acquisition Reg9 ulation (including provisions relating to due process), that 

10 a violation of section 4(a) has occurred. 

11 (2) The amount of liquidated damages that may be 

12 imposed pursuant to paragraph (1) is an amount equal 

13 to the greater of 3 times—

14 (A) the final bid on the contract (before the 

15 award of the contract) by either a contractor or sub16 contractor; or 

17 (B) the price paid to the contractor or any sub18 contractor for work performed. 

19 (b) GROUNDS FOR SUSPENSION OR DEBARMENT.—

20 The imposition of liquidated damages under subsection (a) 

21 on a contractor or subcontractor with respect to 2 con22 tracts within a 5-year period shall be deemed to be ade23 quate evidence of a lack of integrity and business ethics 

24 that seriously and directly affects the responsibility of a 

25 Government contractor within the meaning of part 9.4 of 
5

•HR 1348 IH 

1 the Federal Acquisition Regulation (Debarment, Suspen2 sion, and Ineligibility) (48 CFR 9.4). 

3 SEC. 6. IMPLEMENTATION THROUGH THE FEDERAL ACQUI4 SITION REGULATION. 

5 Not later than 120 days after the date of the enact6 ment of this Act, the Federal Acquisition Regulation shall 

7 be modified to provide appropriate solicitation provisions, 

8 contract clauses, and investigatory procedures to imple9 ment this Act. 

10 SEC. 7. EFFECTIVE DATE. 

11 This Act shall apply with respect to contracts award12 ed on or after the date of the beginning of the first fiscal 

13 quarter beginning more than 120 days after the date of 

14 the enactment of this Act.

Æ