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.
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 2003’’. 
SEC. 2. FINDINGS. 
Congress finds the following: 
(1) Certain abhorrent and undesirable prac-
tices, known as bid shopping, have arisen from time
to time in construction work for the Federal Govern-
ment. 
(2) Bid shopping threatens the integrity of the 
procurement of construction services. 
(3) The practice of bid shopping deprives tax-
payers of the full benefits of fair competition among 
contractors and subcontractors, and often results in 
poor quality of material and workmanship to the 
detriment of the public. 
(4) When bid shopping occurs, the cost savings 
gained are not passed on to the Federal Govern-
ment, but the simultaneous reductions in quality and 
value are passed on to the Federal Government. 
(5) The procurement practices of the Federal 
Government should be modified to prohibit bid shop-
ping at any level. 
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) BID SHOPPING.—The term ‘‘bid shopping’’ 
means the practice of divulging a contractor’s or
subcontractor’s bid or proposal or requiring a con-
tractor or subcontractor to divulge its bid or pro-
posal to another prospective contractor or subcon-
tractor before the award of a contract or subcontract 
in order to secure a lower bid or proposal. 
(3) 
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. 
(4) 
SUBCONTRACTOR.—The 
term 
‘‘subcon-
tractor’’ means an individual or entity with which an 
offeror on a contract proposes to enter into a sub-
contract for manufacturing, supplying, fabricating, 
installing, or otherwise performing with respect to 
the contract, whether the work is to be performed by 
the subcontractor at the construction site or off the 
site. 
SEC. 4. PROHIBITION AGAINST BID SHOPPING. 
(a) PROHIBITION.—Neither the Federal Government, 
nor a contractor or subcontractor, shall participate in the 
practice of bid shopping with respect to a contract. 
(b) NOTICE REQUIREMENT.—Any invitation for bid 
or request for proposal issued by the Federal Government 
shall include a clause explicitly prohibiting the practice of
bid shopping and specifying the penalties for violating the 
prohibition against bid shopping. 
SEC. 5. PENALTIES. 
(a) IN GENERAL.—(1) A contract shall provide for 
termination of the contract or the imposition of liquidated 
damages in the amount described in paragraph (2) upon 
a determination by the contracting officer, in accordance 
with applicable provisions of the Federal Acquisition Reg-
ulation (including provisions relating to due process), that 
a violation of section 4(a) has occurred. 
(2) The amount of liquidated damages that may be 
imposed pursuant to paragraph (1) is an amount equal 
to the greater of 3 times—
(A) the final bid on the contract (before the 
award of the contract) by either a contractor or sub-
contractor; or 
(B) the price paid to the contractor or any sub-
contractor for work performed. 
(b) GROUNDS FOR SUSPENSION OR DEBARMENT.—
The imposition of liquidated damages under subsection (a) 
on a contractor or subcontractor with respect to 2 con-
tracts within a 5-year period shall be deemed to be ade-
quate evidence of a lack of integrity and business ethics 
that seriously and directly affects the responsibility of a 
Government contractor within the meaning of part 9.4 of
the Federal Acquisition Regulation (Debarment, Suspen-
sion, and Ineligibility) (48 CFR 9.4). 
SEC. 6. IMPLEMENTATION THROUGH THE FEDERAL ACQUI-
SITION REGULATION. 
Not later than 120 days after the date of the enact-
ment of this Act, the Federal Acquisition Regulation shall 
be modified to provide appropriate solicitation provisions, 
contract clauses, and investigatory procedures to imple-
ment this Act. 
SEC. 7. EFFECTIVE DATE. 
This Act shall apply with respect to contracts award-
ed on or after the date of the beginning of the first fiscal 
quarter beginning more than 120 days after the date of 
the enactment of this Act.
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