Bogus Bonus Ban Act of 2020

Bill: 116-s-3185
Sponsor: full_name: Sen. Ernst, Joni [R-IA]
Introduced: 2020-01-14
Policy area: Government Operations and Politics
Subjects: Government information and archives

Performance measurement

Public contracts and procurement
Latest action: action_date: 2020-01-14
text: Read twice and referred to the Committee on Homeland Security and Governmental Affairs.

Summaries:
action_date: 2020-01-14
action_desc: Introduced in Senate
text: <p><b>Bogus Bonus Ban Act of 2020</b></p> <p>This bill directs the Office of Management and Budget, in coordination with federal departments and agencies, to issue guidance, with detailed implementation instructions, on the appropriate use of award and incentive fees in department or agency programs.</p> <p>The guidance shall, among other things</p> <ul> <li> ensure that all new contracts using award fees link such fees to outcomes (which shall be defined in terms of program cost, schedule, and performance); </li> <li>establish criteria for identifying the appropriate level of officials authorized to approve the use of award and incentive fees in new contracts;</li> <li> ensure that no award fee may be paid for contractor performance that is judged to be below satisfactory performance or performance that does not meet the basic requirements of the contract; and</li> <li> provide for the development of performance measures to evaluate the effectiveness of award and incentive fees as a tool for improving contractor performance and achieving desired program outcomes. </li> </ul> <p> Any funds intended to be awarded as incentive fees that are not paid due to the inability of a contractor to meet the criteria established by this bill shall be deobligated and made available for purposes for which the funds are otherwise allowable. </p> <p>The Department of the Treasury shall include <i>award fee</i> as a filter on USAspending.gov.</p>

tv_txt: II 116th CONGRESS 2d Session S. 3185 IN THE SENATE OF THE UNITED STATES January 14, 2020 Ms. Ernst (for herself, Mr. Peters , and Mr. Lankford ) introduced the following bill; which was read twice and referred to the Committee on Homeland Security and Governmental Affairs A BILL To prohibit the payment of bonuses to contractors for unsatisfactory performance.

1. Short title This Act may be cited as the Bogus Bonus Ban Act of 2020 . 2. Linking of award and incentive fees to contract outcomes (a) Guidance Not later than 180 days after the date of the enactment of this Act, the Director of the Office of Management and Budget, in coordination with the heads of Federal departments and agencies, shall issue guidance, with detailed implementation instructions (including definitions), on the appropriate use of award and incentive fees in department or agency programs. (b) Elements The guidance under subsection (a) shall— (1) ensure that all new contracts using award fees link such fees to outcomes (which shall be defined in terms of program cost, schedule, and performance); (2) establish criteria for identifying the appropriate level of officials authorized to approve the use of award and incentive fees in new contracts; (3) describe the circumstances in which contractor performance may be judged to be excellent or superior and the percentage of the available award fee which contractors should be paid for such performance; (4) establish criteria for determining the percentage of the available award fee, if any, which contractors should be paid for performance that is judged to be acceptable, average, expected, good, or satisfactory; (5) ensure that no award fee may be paid for contractor performance that is judged to be below satisfactory performance or performance that does not meet the basic requirements of the contract; (6) prohibit roll over award fees that are not earned in one award fee period to a subsequent award fee period or periods; (7) ensure that Departments and agencies, not later than 30 days after completion of the requirement set forth in subsection (d)— (A) collect relevant data on award and incentive fees paid to contractors and provide for the inclusion of such information, including a listing of each award and incentive fee so paid, on USAspending.gov, the searchable website of government spending established pursuant to section 2(b) of the Federal Funding Accountability and Transparency Act of 2006 ( Public Law 109–206 ; 31 U.S.C. 6101 note); and (B) have mechanisms in place to evaluate such data on a regular basis; and (8) provide for the development of performance measures to evaluate the effectiveness of award and incentive fees as a tool for improving contractor performance and achieving desired program outcomes. (c) Return of unearned bonuses Any funds intended to be awarded as incentive fees that are not paid due to the inability of a contractor to meet the criteria established by this section shall be deobligated and made available for purposes for which the funds are otherwise allowable. (d) Inclusion of award fee as award type filter on USAspending.gov The Secretary of the Treasury shall include award fee as a filter on USAspending.gov.