I

103D CONGRESS

1ST SESSION H. R. 232

To amend the Federal Property and Administrative Services Act of 1949

and title 10, United States Code, to require as a term in each contract

for property or services made by an executive agency that the contractor

(and any subcontractors under that contract) shall comply with the

workmen’s compensation laws of each State in which the contract is

performed.

IN THE HOUSE OF REPRESENTATIVES

JANUARY 5, 1993

Mr. LAROCCO introduced the following bill; which was referred jointly to the

Committees on Government Operations and Armed Services

A BILL

To amend the Federal Property and Administrative Services

Act of 1949 and title 10, United States Code, to require

as a term in each contract for property or services made

by an executive agency that the contractor (and any

subcontractors under that contract) shall comply with

the workmen’s compensation laws of each State in which

the contract is performed.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
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1 SECTION 1. FEDERAL CONTRACTS TO REQUIRE COMPLI2 ANCE WITH STATE WORKMEN’S COMPENSA3 TION LAWS.

4 (a) IN GENERAL.—(1) Title III of the Federal Prop5 erty and Administrative Services Act of 1949 (41 U.S.C.

6 251 et seq.) is amended by inserting after section 303G

7 (41 U.S.C. 253g) the following new section:

8 ‘‘SEC. 303H. COMPLIANCE WITH STATE WORKMEN’S COM9 PENSATION LAWS.

10 ‘‘(a) COMPLIANCE REQUIRED.—Each contract for

11 the purchase of property or services made by an executive

12 agency shall provide that the prime contractor (and any

13 subcontractor performing work on the contract under the

14 prime contractor) shall guarantee throughout the perform15 ance of work under the contract to comply with the work16 men’s compensation law of each State in which work

17 under the contract will be performed.

18 ‘‘(b) TERMINATION OF WORK ON FAILURE TO DEM19 ONSTRATE COMPLIANCE.—Each such contract shall con20 tain the further provision that in the event the contracting

21 officer determines that the prime contractor (or any sub22 contractor under the contract) is not in compliance with

23 the workmen’s compensation laws of any State within

24 which work under the contract is being carried out, the

25 Government may terminate the right of the offending con26 tractor or subcontractor to proceed with the work or such
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1 part of the work being carried out in a State in which

2 compliance with the workmen’s compensation laws is not

3 demonstrated. Notice of such termination shall be pro4 vided in writing to the offending contractor or subcontrac5 tor. If, within a reasonable time, the offending contractor

6 or subcontractor has not demonstrated compliance with

7 the workmen’s compensation laws of such State, including

8 payment of any fines or penalties assessed for failure to

9 carry workmen’s compensation insurance, the Government

10 may complete the work. The contractor and any sureties

11 of the contractor shall be liable to the Government for any

12 excess costs occasioned the Government as a result of the

13 termination.

14 ‘‘(c) EXCEPTIONS.—This section shall not apply in

15 the case of contracts covered by the Defense Base Act (42

16 U.S.C. 1651 et seq.) or the Longshore and Harbor Work17 ers’ Compensation Act (33 U.S.C. 901 et seq.).

18 ‘‘(d) SUSPENSION OF SECTION.—In the event of a

19 national emergency, the President may suspend operation

20 of this section.’’.

21 (2) The table of contents at the beginning of such

22 Act is amended by inserting after the item relating to sec23 tion 303G the following new item:

‘‘Sec. 303H. Compliance with State workmen’s compensation laws.’’.
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1 (b) SPECIAL RULE FOR DEFENSE CONTRACTS.—(1)

2 Chapter 137 of title 10, United States Code, is amended

3 by adding at the end the following new section:

4 ‘‘§ 2332. Compliance with State workmen’s compensa5 tion laws.

6 ‘‘(a) COMPLIANCE REQUIRED.—Each contract for

7 the purchase of property or services made by the head of

8 an agency shall provide that the prime contractor (and any

9 subcontractor performing work on the contract under the

10 prime contractor) shall guarantee throughout the perform11 ance of work under the contract to comply with the work12 men’s compensation law of each State in which work

13 under the contract will be performed.

14 ‘‘(b) TERMINATION OF WORK ON FAILURE TO DEM15 ONSTRATE COMPLIANCE.—Each such contract shall con16 tain the further provision that in the event the contracting

17 officer determines that the prime contractor (or any sub18 contractor under the contract) is not in compliance with

19 the workmen’s compensation laws of any State within

20 which work under the contract is being carried out, the

21 head of the agency concerned may terminate the right of

22 the offending contractor or subcontractor to proceed with

23 the work or such part of the work being carried out in

24 a State in which compliance with the workmen’s com25 pensation laws is not demonstrated. Notice of such termi-
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1 nation shall be provided in writing to the offending con2 tractor or subcontractor. If, within a reasonable time, the

3 offending contractor or subcontractor has not dem4 onstrated compliance with the workmen’s compensation

5 laws of such State, including payment of any fines or pen6 alties assessed for failure to carry workmen’s compensa7 tion insurance, the head of the agency concerned may

8 complete the work. The contractor and any sureties of the

9 contractor shall be liable to the Government for any excess

10 costs occasioned the Government as a result of the termi11 nation.

12 ‘‘(c) EXCEPTIONS.—This section shall not apply in

13 the case of contracts covered by the Defense Base Act (42

14 U.S.C. 1651 et seq.).

15 ‘‘(d) SUSPENSION OF SECTION.—In the event of a

16 national emergency, the President may suspend operation

17 of this section.’’.

18 (2) The table of contents at the beginning of such

19 chapter is amended by adding at the end the following

20 new item:

‘‘2332. Compliance with State workmen’s compensation laws.’’.

21 (c) APPLICATION OF AMENDMENTS.—The amend22 ments made by this section shall apply with respect to

23 Federal contracts entered into after the date of the enact24 ment of this Act.

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