I
107TH CONGRESS
1ST SESSION
H. R. 2055
To preserve open competition and Federal Government neutrality towards
the labor relations of Federal Government contractors on Federal and
federally funded construction projects.
IN THE HOUSE OF REPRESENTATIVES
JUNE 5, 2001
Mr. SAM JOHNSON of Texas (for himself, Mr. BOEHNER, Mr. ARMEY, Mr.
HAYWORTH, Mr. BALLENGER, Mr. GRAHAM, Mr. NORWOOD, Mr.
ISAKSON, Mrs. BIGGERT, Mr. KELLER, Mr. CULBERSON, Mr. PAUL, Mr.
HALL of Texas, Mr. SESSIONS, Mrs. NORTHUP, Mr. LINDER, and Mr.
SOUDER) introduced the following bill; which was referred to the Com-
mittee on Government Reform
A BILL
To preserve open competition and Federal Government neu-
trality towards the labor relations of Federal Government
contractors on Federal and federally funded construction
projects.
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 ‘‘Government Neutrality
in Contracting Act’’.
SEC. 2. PURPOSES.
It is the purpose of this Act to—
(1) promote and ensure open competition on
Federal and federally funded or assisted construc-
tion projects;
(2) maintain Federal Government neutrality to-
wards the labor relations of Federal Government
contractors on Federal and federally funded or as-
sisted construction projects;
(3) reduce construction costs to the Federal
Government and to the taxpayers;
(4) expand job opportunities, especially for
small and disadvantaged businesses; and
(5) prevent discrimination against Federal Gov-
ernment contractors or their employees based upon
labor affiliation or the lack thereof, thereby pro-
moting the economical, nondiscriminatory, and effi-
cient administration and completion of Federal and
federally funded or assisted construction projects.
SEC. 3. PRESERVATION OF OPEN COMPETITION AND FED-
ERAL GOVERNMENT NEUTRALITY.
(a) PROHIBITION.—
(1) GENERAL RULE.—The head of each execu-
tive agency that awards any construction contract
after the date of enactment of this Act, or that obli-
gates funds pursuant to such a contract, shall en-
sure that the agency, and any construction manager
acting on behalf of the Federal Government with re-
spect to such contract, in its bid specifications,
project agreements, or other controlling documents
does not—
(A) require or prohibit a bidder, offeror,
contractor, or subcontractor from entering into,
or adhering to, agreements with 1 or more
labor organization, with respect to that con-
struction project or another related construction
project; or
(B) otherwise discriminate against a bid-
der, offeror, contractor, or subcontractor be-
cause such bidder, offeror, contractor, or
subcontractor—
(i) became a signatory, or otherwise
adhered to, an agreement with 1 or more
labor organization with respect to that con-
struction project or another related con-
struction project; or
(ii) refused to become a signatory, or
otherwise adhere to, an agreement with 1
or more labor organization with respect to
that construction project or another related
construction project.
(2) APPLICATION OF PROHIBITION.—The provi-
sions of this section shall not apply to contracts
awarded prior to the date of enactment of this Act,
and subcontracts awarded pursuant to such con-
tracts regardless of the date of such subcontracts.
(3) RULE
OF
CONSTRUCTION.—Nothing in
paragraph (1) shall be construed to prohibit a con-
tractor or subcontractor from voluntarily entering
into an agreement described in such paragraph.
(b) RECIPIENTS OF GRANTS AND OTHER ASSIST-
ANCE.—The head of each executive agency that awards
grants, provides financial assistance, or enters into cooper-
ative agreements for construction projects after the date
of enactment of this Act, shall ensure that—
(1) the bid specifications, project agreements,
or other controlling documents for such construction
projects of a recipient of a grant or financial assist-
ance, or by the parties to a cooperative agreement,
do not contain any of the requirements or prohibi-
tions described in subparagraph (A) or (B) of sub-
section (a)(1); or
(2) the bid specifications, project agreements,
or other controlling documents for such construction
projects of a construction manager acting on behalf
of a recipient or party described in paragraph (1),
do not contain any of the requirements or prohibi-
tions described in subparagraph (A) or (B) of sub-
section (a)(1).
(c) FAILURE TO COMPLY.—If an executive agency,
a recipient of a grant or financial assistance from an exec-
utive agency, a party to a cooperative agreement with an
executive agency, or a construction manager acting on be-
half of such an agency, recipient or party, fails to comply
with subsection (a) or (b), the head of the executive agency
awarding the contract, grant, or assistance, or entering
into the agreement, involved shall take such action, con-
sistent with law, as the head of the agency determines to
be appropriate.
(d) EXEMPTIONS.—
(1) IN GENERAL.—The head of an executive
agency may exempt a particular project, contract,
subcontract, grant, or cooperative agreement from
the requirements of 1 or more of the provisions of
subsections (a) and (b) if the head of such agency
determines that special circumstances exist that re-
quire an exemption in order to avert an imminent
threat to public health or safety or to serve the na-
tional security.
(2) SPECIAL
CIRCUMSTANCES.—For purposes
of paragraph (1), a finding of ‘‘special cir-
cumstances’’ may not be based on the possibility or
existence of a labor dispute concerning contractors
or subcontractors that are nonsignatories to, or that
otherwise do not adhere to, agreements with 1 or
more labor organization, or labor disputes con-
cerning employees on the project who are not mem-
bers of, or affiliated with, a labor organization.
(3) ADDITIONAL
EXEMPTION
FOR
CERTAIN
PROJECTS.—The head of an executive agency, upon
application of an awarding authority, a recipient of
grants or financial assistance, a party to a coopera-
tive agreement, or a construction manager acting on
behalf of any of such entities, may exempt a par-
ticular project from the requirements of any or all
of the provisions of subsections (a) or (c), if the
agency head finds—
(A) that the awarding authority, recipient
of grants or financial assistance, party to a co-
operative agreement, or construction manager
acting on behalf of any of such entities had
issued or was a party to, as of the date of the
enactment of this Act, bid specifications, project
agreements, agreements with one or more labor
organizations, or other controlling documents
with respect to that particular project, which
contained any of the requirements or prohibi-
tions set forth in subsection (a)(1); and
(B) that one or more construction contracts
subject to such requirements or prohibitions had
been awarded as of the date of the enactment of this
Act.
(e) FEDERAL ACQUISITION REGULATORY COUN-
CIL.—With respect to Federal contracts to which this sec-
tion applies, not later than 60 days after the date of enact-
ment of this Act, the Federal Acquisition Regulatory
Council shall take appropriate action to amend the Fed-
eral Acquisition Regulation to implement the provisions of
this section.
(f) DEFINITIONS.—In this section:
(1) 
CONSTRUCTION
CONTRACT.—The 
term
‘‘construction contract’’ means any contract for the
construction, rehabilitation, alteration, conversion,
extension, or repair of buildings, highways, or other
improvements to real property.
(2) EXECUTIVE AGENCY.—The term ‘‘executive
agency’’ has the meaning given such term in section
105 of title 5, United States Code, except that such
term shall not include the General Accounting Of-
fice.
(3) LABOR ORGANIZATION.—The term ‘‘labor
organization’’ has the meaning given such term in
section 701(d) of the Civil Rights Act of 1964 (42
U.S.C. 2000e(d)).
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