I 
109TH CONGRESS 
1ST SESSION H. R. 1449
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 
MARCH 17, 2005
Mr. SULLIVAN (for himself, Mrs. MUSGRAVE, Mr. WICKER, Mr. RADANOVICH, 
Mr. WILSON of South Carolina, Mr. SOUDER, Mr. NORWOOD, Mrs. 
MYRICK, Mr. MCHENRY, Mr. INGLIS of South Carolina, Mr. FLAKE, and 
Mr. KING of Iowa) introduced the following bill; which was referred to 
the Committee 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 sub-
contractor—
(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 con-
tracts subject to such requirements or prohibi-
tions 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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