Title: SUBS Act
Policy area: Government Operations and Politics

Summary:
Stop Unfair Bid Shopping Act of 2019 or the SUBS Act
This bill requires prime contractors under federal construction contracts to notify the government of changes in certain subcontractors performing contract work.
Specifically, the bill requires an executive agency awarding a construction contract using sealed bid procedures in an amount greater than $1.5 million to, among other things (1) require an offeror for the contract to include a list in the offer that includes each subcontractor that the offeror intends to use, for any subcontract expected to be awarded in excess of $100,000; and (2) include a clause in the contract requiring that the prime contractor submit to the agency a written notification of any subcontractor substituted after the award of the contract for a subcontractor listed, along with an updated estimate for the cost of performing the work associated with the substituted subcontractor.
If the prime contractor notifies the agency of a substituted subcontractor and the cost of performing the work associated with the substituted contractor is estimated to cost 10% or more than the cost for performing such work as bid, the contracting officer for the contact may modify the contract to reduce the amount of the contract award to take into account the substitution of the subcontractor.
The bill excludes from its scope contracts for the Department of Defense or any military department but includes the U.S. Army Corps of Engineers.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5247 Introduced in House (IH)]

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116th CONGRESS
  1st Session
                                H. R. 5247

 To require prime contractors under Federal construction contracts to 
 notify the Government of changes in certain subcontractors performing 
                        work under the contract.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           November 21, 2019

  Mr. Peters introduced the following bill; which was referred to the 
                   Committee on Oversight and Reform

_______________________________________________________________________

                                 A BILL


 
 To require prime contractors under Federal construction contracts to 
 notify the Government of changes in certain subcontractors performing 
                        work under the contract.

    Be it enacted 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 ``Stop Unfair Bid Shopping Act of 
2019'' or the ``SUBS Act''.

SEC. 2. REQUIREMENT TO NOTIFY GOVERNMENT OF CHANGES TO SUBCONTRACTORS 
              UNDER CONSTRUCTION CONTRACTS.

    (a) Requirement.--An agency awarding a construction contract using 
sealed bid procedures in an amount greater than $1,500,000 shall--
            (1) require an offeror for the contract to include a list 
        in the offer that includes--
                    (A) each subcontractor that the offeror intends to 
                use in the performance of the contract, for any 
                subcontract expected to be awarded in excess of 
                $100,000; and
                    (B) any work estimated to cost in excess of 
                $100,000 that will solely be performed by the prime 
                contractor for the contract;
            (2) include a clause in the contract requiring that the 
        prime contractor shall submit to the agency a written 
        notification of--
                    (A) any subcontractor substituted after the award 
                of the contract for a subcontractor listed under 
                paragraph (1)(A), along with an updated estimate for 
                the cost of performing the work associated with the 
                substituted subcontractor; and
                    (B) any subcontract entered into for work listed 
                under paragraph (1)(B).
    (b) Modification to Contract.--In the case of a construction 
contract covered by subsection (a), if the prime contractor notifies 
the agency of a substituted subcontractor under subsection (a)(2) and 
the cost of performing the work associated with the substituted 
contractor is estimated to cost 10 percent or greater less than the 
cost for performing such work as bid, the contracting officer for the 
contract may modify the contract to reduce the amount of the contract 
award to take into account the substitution of subcontractor.
    (c) Agency Defined.--In this section, the term ``agency''--
            (1) has the meaning given the term ``executive agency'' in 
        section 133 of title 41, United States Code;
            (2) does not include the Department of Defense or any 
        military department; and
            (3) includes the United States Army Corps of Engineers.
    (d) Revision of Federal Acquisition Regulation.--
            (1) In general.--Not later than 180 days after the date of 
        the enactment of this section, the Federal Acquisition 
        Regulation shall be revised to provide for the implementation 
        of this section.
            (2) Notice and comment.--There shall be provided a public 
        notice and comment period of not less than 60 days.
            (3) Final rule.--Any final rule promulgated pursuant to 
        this subsection shall take effect 30 days after the date on 
        which the final rule is published in the Federal Register.
    (e) Effective Date.--This Act shall apply with respect to contracts 
awarded on or after the date occurring 180 days after the date of the 
enactment of this Act.
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