IIB 
109TH CONGRESS 
2D SESSION 
H. R. 3961 
IN THE SENATE OF THE UNITED STATES 
SEPTEMBER 26, 2006 
Received 
NOVEMBER 13, 2006 
Read twice and referred to the Committee on Energy and Natural Resources 
AN ACT 
To authorize the National Park Service to pay for services 
rendered by subcontractors under a General Services Ad-
ministration Indefinite Deliver/Indefinite Quantity Con-
tract issued for work to be completed at the Grand 
Canyon National Park. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. DEFINITIONS. 
As used in this Act, the following definitions apply: 
(1) IDIQ.—The term ‘‘IDIQ’’ means an Indefi-
nite Deliver/Indefinite Quantity contract. 
(2) PARK.—The term ‘‘park’’ means Grand 
Canyon National Park. 
(3) PGI.—The term ‘‘PGI’’ means Pacific Gen-
eral, Inc. 
(4) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of the Interior, acting through the Di-
rector of the National Park Service. 
SEC. 2. FINDINGS AND PURPOSE. 
(a) FINDINGS.—Congress finds the following: 
(1) The park issued approximately 40 task or-
ders to PGI under an IDIQ between fiscal years 
2002 and 2003 for a variety of projects. 
(2) The value of these task orders was over 
$17,000,000 
for 
various 
construction 
projects 
throughout the park. 
(3) According to invoices sent to the park, PGI 
certified that proceeds of payments were being sent 
to subcontractors and suppliers. 
(4) In January 2004, complaints were received 
by numerous subcontractors citing lack of payments 
by PGI. 
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(5) The National Park Service has paid over 
$10,000,000 to PGI, of which an estimated 
$1,300,000 was owed, but not paid to subcontrac-
tors. 
(6) During an acquisition management review 
conducted by the Washington Contracting and Pro-
curement Office of the National Park Service, it was 
found that the park had failed to ensure that PGI 
obtained the necessary payment and performance 
bonds required by the IDIQ and the Miller Act (40 
U.S.C. 270a). 
(7) On February 6, 2004, the National Park 
Service suspended further payment to PGI and 
issued a suspension notice to cease activity by the 
contractor. 
(8) The National Park Service gave PGI every 
reasonable opportunity to resolve the situation, but 
PGI has effectively ceased doing business. 
(9) Recovery by the Government of that 
$1,300,000 is unlikely. 
(10) The National Park Service is prohibited 
from making payments to a contractor without ob-
taining payment and performance bonds. 
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(11) Contract law generally prohibits payment 
directly to subcontractors because of the lack of a 
direct, contractual relationship between the parties. 
(12) The Federal Government has derived bene-
fits from the work that has been completed. 
(b) PURPOSE.—The purpose of this Act is to author-
ize the Secretary to pay for services rendered by sub-
contractors that should have been paid by PGI. 
SEC. 3. AUTHORIZATION. 
The Secretary is authorized to use $1,300,000 from 
the park’s entrance fee revenues to pay subcontractors of 
PGI for work performed at the park under an IDIQ with 
PGI between fiscal years 2002 and 2003 provided that— 
(1) the primary contract between PGI and the 
National Park Service is terminated; 
(2) the amount owed to the subcontractors is 
verified; 
(3) all reasonable legal avenues or recourse 
have been exhausted by the subcontractors to recoup 
amounts owed directly from PGI; and 
(4) the subcontractors provide a written state-
ment that payment of the amount verified in para-
graph (2) represents payment in full by the United 
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States for all work performed at the park under the 
IDIQ with PGI between fiscal years 2002 and 2003. 
Passed the House of Representatives September 25, 
2006. 
Attest: 
KAREN L. HAAS, 
Clerk. 
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