The American Subcontractors Association (ASA) applauded longtime friend of the subcontractors Rep. Paul Kanjorski, D-Pa., for re-introducing legislation that would prohibit the practice of ‘bid shopping’ on federal construction contracts. The bill (H.R. 1348) was introduced on March 19.
“Bid shopping threatens the integrity of the competitive bid system and reduces the quality of work performed for American taxpayers,” said Rep. Kanjorski. “This bill would ensure that contractors maintain the quality of work promised in their initial bids to the federal government and it would restore fairness and stability to the construction industry.”
The bill states that no party, including the government, prime contractors, and subcontractors, shall engage in bid shopping, or will face penalties of liquidated damages, or in case of three or more violations within a five-year period, possible debarment. The bill would equally prohibit all forms of bid shopping, effectively eliminating online reverse auctions for federal construction.
The legislation defines bid shopping as the practice of divulging a contractor’s or subcontractor’s bid or proposal or requiring a contractor or subcontractor to divulge its bid or proposal to another prospective contractor or subcontractor before the award of a contract or subcontract in order to secure a lower bid or proposal.