I 

109TH CONGRESS 

1ST SESSION H. R. 2834 

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 

JUNE 9, 2005 

Mr. KANJORSKI (for himself, Mr. MORAN of Virginia, Mr. WYNN, Mr. UDALL

of Colorado, Mr. JEFFERSON, Mrs. MALONEY, Mr. BISHOP of New York, 

and Mr. OWENS) 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 2005’’. 

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 
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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 all levels. 

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, or causing to be di-
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1 vulged, a contractor’s or subcontractor’s bid or pro2 posal or requiring a contractor or subcontractor to 

3 divulge its bid or proposal to another prospective 

4 contractor or subcontractor before the award of a 

5 contract or subcontract in order to secure a lower 

6 bid or proposal. 

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

8 means an individual or entity that has been awarded 

9 or is seeking to be awarded a construction contract 

10 by the Federal Government. 

11 (4) SUBCONTRACTOR.—The term ‘‘subcon12 tractor’’ means an individual or entity with which an 

13 offeror on a contract proposes to enter into a sub14 contract for manufacturing, supplying, fabricating, 

15 installing, or otherwise performing with respect to 

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

17 the subcontractor at the construction site or off the 

18 site. 

19 SEC. 4. PROHIBITION AGAINST BID SHOPPING. 

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

21 nor a contractor or subcontractor, shall participate in the 

22 practice of bid shopping with respect to a contract. 

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

24 or request for proposal issued by the Federal Government 

25 shall include a clause explicitly prohibiting the practice of 
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1 bid shopping and specifying the penalties for violating the 

2 prohibition against bid shopping. 

3 SEC. 5. PENALTIES. 

4 (a) IN GENERAL.—A contract shall provide for termi5 nation of the contract or the imposition of liquidated dam6 ages in the amount described in subsection (b) upon a de7 termination by the contracting officer, in accordance with 

8 applicable provisions of the Federal Acquisition Regula9 tion (including provisions relating to due process), that a 

10 violation of section 4(a) has occurred. 

11 (b) AMOUNT.—The amount of liquidated damages 

12 that may be imposed pursuant to subsection (a) is an 

13 amount equal to the greater of— 

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

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

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

19 SEC. 6. IMPLEMENTATION THROUGH THE FEDERAL ACQUI20 SITION REGULATION. 

21 Not later than 120 days after the date of the enact22 ment of this Act, the Federal Acquisition Regulation shall 

23 be modified to provide appropriate solicitation provisions, 

24 contract clauses, and investigatory procedures to imple25 ment this Act. 
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1 SEC. 7. EFFECTIVE DATE. 

2 This Act shall apply with respect to contracts award3 ed on or after the date of the beginning of the first fiscal 

4 quarter beginning more than 120 days after the date of 

5 the enactment of this Act. 

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