duce its price for performance of the specified work, 
suggesting that the previous offer of the subcon-
tractor was padded or incorrect. 
(5) Bid shopping and bid peddling— 
(A) threaten the integrity of the competi-
tive bid system for construction that benefits 
the Federal Government, the construction in-
dustry, and the economy of the United States 
as a whole; 
(B) deprive taxpayers of the benefits of full 
and open competition among prospective con-
tractors and subcontractors for the performance 
of Federal construction projects; 
(C) expose Federal construction projects to 
the dangers of substandard performance, sub-
stitution of lower quality materials, and other 
detrimental cost-cutting practices by an unscru-
pulous substituted subcontractor; and 
(D) can be effectively deterred in Federal 
construction by modifying the Federal Acquisi-
tion Regulation to require bid listing, which is 
the practice of requiring each offeror for a Fed-
eral construction contract to list the sub-
contractors whose performance is reflected in 
the bid price, procedures for the substitution of 
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listed subcontractors for good cause, and other 
deterrents to abuse. 
SEC. 3. IMPLEMENTATION THROUGH THE GOVERNMENT- 
WIDE PROCUREMENT REGULATIONS. 
(a) PROPOSED REVISIONS.—Proposed revisions to 
the Government-wide Federal Acquisition Regulation to 
implement the provisions in this Act shall be published not 
later than 120 days after the date of the enactment of 
this Act and provide not less than 60 days for public com-
ment. 
(b) FINAL REGULATIONS.—Final regulations shall be 
published not less than 180 days after the date of enact-
ment of this Act and shall be effective on the date that 
is 30 days after the date of publication. 
SEC. 4. REQUIREMENTS REGARDING SUBCONTRACTORS 
FOR FEDERAL CONTRACTORS ON CONSTRUC-
TION PROJECTS. 
(a) REQUIREMENT TO LIST SUBCONTRACTORS.— 
(1) IN GENERAL.—(A) Each solicitation by an 
executive agency for the procurement of construction 
in an amount in excess of $1,000,000 shall require 
each bidder to submit as part of its bid the name, 
location of the place of business, and nature of the 
work of each subcontractor with whom the bidder, if 
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awarded the contract, will subcontract for work in 
an amount in excess of $100,000 on the contract. 
(2) 
REQUIREMENTS
FOR
SPECIFIC
CAT-
EGORIES.—(A) Except as provided in subparagraphs 
(B) and (C), the bidder shall list only one subcon-
tractor for each category of work as defined by the 
bidder in its bid or proposal. 
(B) A bidder may list multiple subcontractors 
for a category of work if each such subcontractor is 
listed to perform a discreet portion of the work with-
in a category. 
(C) A bidder may list itself for any portion of 
work under the contract, which shall be deemed a 
representation by the bidder that it is fully qualified 
to perform that portion of the work itself and that 
the bidder will perform that portion itself. 
(3) RESULT OF FAILURE TO LIST SUBCONTRAC-
TORS.—An executive agency shall consider any bid-
der that fails to list subcontractors in accordance 
with this Act and the regulations promulgated pur-
suant to section 3 of this Act to be non-responsible. 
(b) PROCEDURES FOR SUBSTITUTION OF A LISTED 
SUBCONTRACTOR.— 
(1) CONSENT AND GOOD CAUSE REQUIRED.— 
No contractor shall substitute a subcontractor in 
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place of the subcontractor listed in the original bid 
or proposal, except with the consent of the con-
tracting officer for good cause. 
(2) EXAMPLES OF GOOD CAUSE.—Good cause 
under paragraph (1) shall include the following: 
(A) Failure of the subcontractor to execute 
a written contract after a reasonable period if 
such written contract, based upon the terms, 
conditions, plans, and specifications of the con-
tract and the terms of the subcontractor’s bid 
or proposal, is presented to the subcontractor 
by the contractor. 
(B) Bankruptcy of the subcontractor. 
(C) The death or physical disability of the 
subcontractor, if the subcontractor is an indi-
vidual. 
(D) Dissolution of the subcontractor, if the 
subcontractor is a corporation or partnership. 
(E) Failure of a subcontractor to meet the 
surety bond requirements specified by the bid-
der as a condition of the subcontractor to per-
form on the contract, if awarded to the bidder. 
(F) The subcontractor is ineligible to per-
form on the subcontract because the subcon-
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tractor is suspended, debarred, or otherwise in-
eligible to perform. 
(G) A series of failures by the subcon-
tractor to perform in accordance with the speci-
fication, terms, and conditions of its sub-
contract 
resulting 
in 
the 
withholding 
of 
amounts requested by the subcontractor in ac-
cordance with section 3905 of title 31, United 
States Code, and the regulations implementing 
such section. 
(H) Failure of the subcontractor to comply 
with a requirement of law applicable to the sub-
contractor. 
(I) Failure or refusal of the subcontractor 
to perform the subcontract. 
(3) REQUESTS FOR SUBSTITUTION.—A request 
of a contractor for a substitution of a listed subcon-
tractor shall be submitted in writing to the con-
tracting officer and shall include the reasons for the 
request. The contractor shall provide a copy of its 
request for substitution to the listed subcontractor 
by any means that provides written third-party 
verification of delivery to the last known address of 
the subcontractor. A subcontractor who has been so 
notified shall have five working days within which to 
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submit written objections to the substitution to the 
contracting officer. Failure to file such written ob-
jections shall constitute the consent of the listed 
subcontractor to the substitution. 
(c) LIMITATION
ON ASSIGNMENT, TRANSFER, OR 
SUBSTITUTION.— 
(1) LIMITATION
ON
ASSIGNMENT
OR
TRANS-
FER.—No contractor shall permit any subcontract to 
be voluntarily assigned or transferred or to be per-
formed by any entity other than the subcontractor 
listed in the bid or proposal without the consent of 
the contracting officer. Consent of the contracting 
officer to a contractor for a substitution shall— 
(A) be promptly made in writing; and 
(B) be included in the contract file. 
(2) LIMITATION ON SUBSTITUTION.—No con-
tractor that listed itself for a portion of the work 
under the contract shall subcontract any portion of 
the work for which it listed itself, unless authorized 
by the contracting officer to substitute one or more 
subcontractors to perform such work. 
(d) IMPOSITION OF LIQUIDATED DAMAGES.— 
(1) IN GENERAL.—(A) A contractor shall be 
subject to payment of liquidated damages if, without 
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dollar value specified by the contractor for the 
work for which the contractor had listed for its 
own performance. 
(e) GROUNDS FOR SUSPENSION OR DEBARMENT.— 
The imposition of liquidated damages on a contractor or 
subcontractor for failure to comply with the procedures 
for the substitution of subcontractors on 2 contracts with-
in a 3-year period shall be deemed to be adequate evidence 
of the commission of an offense indicating a lack of busi-
ness integrity or business honesty that seriously and di-
rectly affects the present responsibility of a Government 
contractor within the meaning of part 9.4 of the Federal 
Acquisition Regulation (Debarment, Suspension, and Eli-
gibility) (49 CFR 9.4). 
(f) MODIFICATION OF FEDERAL ACQUISITION REGU-
LATION.—The Administrator for Federal Procurement 
Policy shall ensure that the Federal Acquisition Regula-
tion is modified, in accordance with section 25 of the Of-
fice of Federal Procurement Policy Act (41 U.S.C. 421), 
to carry out the requirements of this Act. 
SEC. 5. DEFINITIONS. 
In this Act— 
(1) the term ‘‘contractor’’ means an entity that 
contracts with an executive agency for the procure-
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ment of construction in an amount in excess of 
$1,000,000; and 
(2) the term ‘‘subcontract’’ means an entity 
that subcontracts with such a contractor in an 
amount in excess of $100,000 for work on a con-
struction contract with an executive agency in an 
amount in excess of $1,000,000. 
Æ 
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