IA
103D CONGRESS
1ST SESSION
H. J. RES. 3
Entitled the ‘‘Government Procurement Act of 1993’’.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 5, 1993
Mrs. BENTLEY introduced the following joint resolution; which was referred
jointly to the Committees on Government Operations and Armed Services
JOINT RESOLUTION
Entitled the ‘‘Government Procurement Act of 1993’’.
Whereas the United States Government’s national debt ex-
ceeds $4,000,000,000,000;
Whereas it is in the best interest of the United States Gov-
ernment to purchase products, services, and supplies at
the least expensive cost;
Whereas in calculating the true purchase price of products,
services, and supplies, the United States Government
should calculate the accurate out-of-pocket expense for
items and services involved;
Whereas the Congressional Research Service has estimated
that 41.4 percent of every United States Government dol-
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lar invested in domestic procurement is returned to the
Federal and State governments in taxes;
Whereas the Congressional Research Service has estimated
that 23.2 percent of every United States Government dol-
lar invested in domestic procurement is returned in Fed-
eral Corporate Profit Taxes, Federal Unincorporated
Nonfarm Business Income taxes, and Federal Personal
Income taxes, and can be used to reduce the deficit;
Whereas the Congressional Research Service has estimated
that 16.3 percent of every United States Government dol-
lar invested in domestic procurement is returned in taxes
earmarked for the Old Age, Survivors, and Disability In-
surance (Social Security) trust fund;
Whereas the return of investment dollars to the United
States is both vital and desirable for its economy;
Whereas full employment is vital to the well-being of both the
United States workforce and United States industry;
Resolved by the Senate and House of Representatives
of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Government Procure-
ment Act of 1993’’.
SEC. 2. AMENDMENTS.
(a) CIVILIAN PROCUREMENT.—Section 303B of the
Federal Property and Administration Services Act of 1949
(41 U.S.C. 253b) is amended by adding at the end thereof
the following new subsection:
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‘‘(g)(1) In evaluating an offeror’s price contained in
any bid or proposal for any procurement in excess of
$100,000, the head of the agency shall treat as containing
the lowest price that bid or proposal which will yield the
lowest net cost to the Government.
‘‘(2) In determining net cost to the Government, the
head of the agency shall deduct from the price offered—
‘‘(A) the income taxes withheld or otherwise
paid on wages paid to the offeror’s employees for
work on performance on the procurement contract;
‘‘(B) projected corporate income taxes to be
paid by the offeror to the Government on any profits
made on the procurement;
‘‘(C) any other rebate, refunds, assessments, or
other receipts which are likely to accrue to the Gov-
ernment as a consequence of the offeror’s perform-
ance of the procurement contract.
‘‘(3) The Administrator of the Office of Federal Pro-
curement Policy shall, pursuant to section 6 of the Office
of Federal Procurement Policy Act, prescribe policies for
the implementation of this subsection.’’.
(b) DEFENSE AGENCIES.—Section 2305 of title 10,
United States Code, is amended by adding at the end
thereof the following new subsection:
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‘‘(e)(1) In evaluating an offeror’s price contained in
any bid or proposal for any procurement in excess of
$100,000, the head of the agency shall treat as containing
the lowest price that bid or proposal which will yield the
lowest net cost to the Government.
‘‘(2) In determining net cost to the Government, the
head of the agency shall deduct from the price offered—
‘‘(A) the income taxes withheld or otherwise
paid on wages paid to the offeror’s employees for
work on performance on the procurement contract;
‘‘(B) projected corporate income taxes to be
paid by the offeror to the government on any profits
made on the procurement;
‘‘(C) any other rebate, refunds, assessments, or
other receipts which are likely to accrue to the Gov-
ernment as a consequence of the offeror’s perform-
ance of the procurement contract.
‘‘(3) The Administrator of the Office of Federal Pro-
curement Policy shall, pursuant to section 6 of the Office
of Federal Procurement Policy Act, prescribe policies for
the implementation of this subsection.’’.
(c) 
CONFORMING
AMENDMENTS.—(1) 
Section
303B(d)(4) of the Federal Property and Administrative
Services Act of 1949 is amended by striking ‘‘subsection
(b)’’ and inserting ‘‘subsections (b) and (g)’’.
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(2) Section 2305(b)(4)(D) of title 10, United States
Code, is amended by inserting after ‘‘paragraph (2)’’ the
following ‘‘of this subsection and subsection (e)’’.
SEC. 3. EFFECTIVE DATE.
The amendments made by this Act shall apply with
respect to any procurement (the notice for which is pub-
lished) (the contract for which is awarded) (other test) on
or after (to be supplied).
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