SUBS Act

To require prime contractors under Federal construction contracts to notify the Government of changes in certain subcontractors performing work under the contract. 1. Short title This Act may be cited as the Stop Unfair Bid Shopping Act of 2019 SUBS Act 2. Requirement to notify Government of changes to subcontractors under construction contracts (a) Requirement An agency awarding a construction contract using sealed bid procedures in an amount greater than $1,500,000 shall— (1) require an offeror for the contract to include a list in the offer that includes— (A) each subcontractor that the offeror intends to use in the performance of the contract, for any subcontract expected to be awarded in excess of $100,000; and (B) any work estimated to cost in excess of $100,000 that will solely be performed by the prime contractor for the contract; (2) include a clause in the contract requiring that the prime contractor shall submit to the agency a written notification of— (A) any subcontractor substituted after the award of the contract for a subcontractor listed under paragraph (1)(A), along with an updated estimate for the cost of performing the work associated with the substituted subcontractor; and (B) any subcontract entered into for work listed under paragraph (1)(B). (b) Modification to contract In the case of a construction contract covered by subsection (a), if the prime contractor notifies the agency of a substituted subcontractor under subsection (a)(2) and the cost of performing the work associated with the substituted contractor is estimated to cost 10 percent or greater less than the cost for performing such work as bid, the contracting officer for the contract may modify the contract to reduce the amount of the contract award to take into account the substitution of subcontractor. (c) Agency defined In this section, the term agency (1) has the meaning given the term executive agency (2) does not include the Department of Defense or any military department; and (3) includes the United States Army Corps of Engineers. (d) Revision of Federal Acquisition Regulation (1) In general Not later than 180 days after the date of the enactment of this section, the Federal Acquisition Regulation shall be revised to provide for the implementation of this section. (2) Notice and Comment There shall be provided a public notice and comment period of not less than 60 days. (3) Final rule Any final rule promulgated pursuant to this subsection shall take effect 30 days after the date on which the final rule is published in the Federal Register. (e) Effective date This Act shall apply with respect to contracts awarded on or after the date occurring 180 days after the date of the enactment of this Act.

Summary: Stop Unfair Bid Shopping Act of 2019 or the SUBS Act This bill requires prime contractors under federal construction contracts to notify the government of changes in certain subcontractors performing contract work. Specifically, the bill requires an executive agency awarding a construction contract using sealed bid procedures in an amount greater than $1.5 million to, among other things (1) require an offeror for the contract to include a list in the offer that includes each subcontractor that the offeror intends to use, for any subcontract expected to be awarded in excess of $100,000; and (2) include a clause in the contract requiring that the prime contractor submit to the agency a written notification of any subcontractor substituted after the award of the contract for a subcontractor listed, along with an updated estimate for the cost of performing the work associated with the substituted subcontractor. If the prime contractor notifies the agency of a substituted subcontractor and the cost of performing the work associated with the substituted contractor is estimated to cost 10% or more than the cost for performing such work as bid, the contracting officer for the contact may modify the contract to reduce the amount of the contract award to take into account the substitution of the subcontractor. The bill excludes from its scope contracts for the Department of Defense or any military department but includes the U.S. Army Corps of Engineers.