I 
112TH CONGRESS 
1ST SESSION H. R. 1778 
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 
MAY 5, 2011 
Mrs. MALONEY (for herself and Ms. HIRONO) introduced the following bill; 
which was referred to the Committee on Oversight and Government Reform 
A BILL 
To assure quality and best value with respect to Federal 
construction projects by prohibiting the practice known 
as bid shopping. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Construction Quality 
Assurance Act of 2011’’. 
SEC. 2. FINDINGS. 
Congress finds the following: 
(1) Federal construction project sealed bid con-
tractor selection procedure is a valuable project ac-
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quisition method that should be preserved and 
strengthened for projects of appropriate scope. 
(2) Federal procurement data trends indicate 
that agencies increasingly are relying on other nego-
tiated contractor selection procedures, rather than 
price-only selection procedures. 
(3) Requirements for Federal agencies to use 
major subcontractor bid listing on price-only prime 
contractor selection procedures would restore the 
balance in use of low-bid and competitive negotia-
tions, which has proven results in other public pro-
curement systems. 
(4) Bid shopping occurs when the successful 
prime contract low bidder, after project award, uses 
the successful subcontract low bids as the beginning 
point for a post-award auction to the same or other 
subcontractors to agree to perform the subcontract 
work at an even lower price, with the savings accru-
ing only to the benefit of the low-bid prime con-
tractor, not the agency program, the project, or the 
taxpayer. 
(5) Bid peddling occurs when other subcontrac-
tors approach the successful prime contractor bidder 
after award of the prime contract and offer to per-
form the subcontract work at a lower price than sub-
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mitted by the subcontractor whose sub-bid price was 
relied on by the successful prime contractor, again 
with the ostensible savings accruing to the prime 
contract low bidder only, not the agency program, 
the project, or the taxpayers. 
(6) Listing of major subcontract bids in the 
prime contractor’s sealed bid by agencies will effec-
tively stem the detrimental and inequitable practices 
of bid shopping and bid peddling on direct Federal 
construction contracts that are detrimental to the 
taxpayers’ interest in government procurement 
transparency, sound public contract administration, 
and successful construction project completion. 
(7) Agencies will receive better project perform-
ance, by restoring integrity to the low-bid selection 
system for both prime contractors and major sub-
contractors, as abusive selection procedures often 
lead to greater project disputes, claims, changes, 
product and material substitutions, and in some 
cases even contractor defaults—again, all to the det-
riment of the agency program, the project, and the 
taxpayers generally. 
(8) Restoring equitable safeguards in the low- 
bid system will assure that agency practice will con-
form to the highest standards adhered to by indus-
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try professionals and contractor associations, and 
will reflect best practices followed by a great many 
other public procurement systems nationally and 
internationally. 
SEC. 3. DEFINITIONS. 
In this Act: 
(1) CONTRACT.—The term ‘‘contract’’ means 
any contract with the Federal Government, exceed-
ing $1,000,000 in amount, for the construction, al-
teration, or repair of any public building or public 
work of the United States. 
(2) 
CONTRACTOR.—The 
term 
‘‘contractor’’ 
means an individual or entity that has been awarded 
or is seeking to be awarded a construction contract 
by the Federal Government. 
(3) 
SUBCONTRACTOR.—The 
term 
‘‘subcon-
tractor’’ means an individual or entity that sub-
contracts with a contractor in an amount in excess 
of $100,000 for work on a contract. 
SEC. 4. REQUIREMENTS REGARDING SUBCONTRACTORS 
FOR FEDERAL CONTRACTORS ON CONSTRUC-
TION PROJECTS. 
(a) REQUIREMENT TO LIST SUBCONTRACTORS.— 
(1) IN GENERAL.—Each solicitation by an exec-
utive agency for the procurement of construction in 
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