“Indifference, incompetence, and corruption have wasted billions of dollars. This bill represents a new direction that will protect taxpayers and restore accountability.”
-Rep. Henry A. Waxman
Today the House Democratic Waste, Fraud, and Abuse Truth Squad introduced
the “Clean Contracting Act of 2006.” The bill (H.R. 6069) would end the
abusive contracting practices that have been rampant under the Bush Administration
and promote greater transparency and accountability in federal contracting. Contracts
collectively worth over $762 billion have been plagued by significant waste,
fraud, abuse, and mismanagement under the Bush Administration.
“The way the Bush Administration has squandered taxpayer dollars is
shameful,” said Rep. Henry A. Waxman. “Indifference, incompetence,
and corruption have wasted billions of dollars. This bill represents
a new direction that will protect taxpayers and restore accountability.”
“This
bill will put a stop to the incompetent and corrupt contracting practices that
have resulted in billions of tax dollars being wasted and fleeced," said Rep.
Dennis A. Cardoza.
The Clean Contracting Act will:
- Promote competition in the award of contracts. The
bill strictly limits noncompetitive contracts, ensures bidding on task orders,
and puts time limits on costly no-bid contracts signed during emergencies.
- Limit the use of abuse-prone contracts. The bill
bans monopoly contracts, prohibits “layer cake” contracts that
inflate costs through tiers of subcontractors, and minimizes the use of cost-plus
contracts.
- Prevent the abuse of contract flexibilities. The
bill closes loopholes in commercial item authority and restricts the award
of no-bid contracts to Alaska Native Corporations.
- Increase contract oversight. The bill mandates that
at least 1% of each agency’s procurement budget be used for contract
oversight, directs that contract overcharges be promptly disclosed to Congress,
and requires that Congress hold hearings to investigate credible evidence
of waste, fraud, abuse, or mismanagement.
- Prevent unjustified award fees. The bill allows
agencies to pay award fees to contractors only for good performance.
- Deter corruption in contracting. The bill closes
the revolving door between government and contracting firms, allows the government
to contract only with companies in good standing, and increases whistleblower
protections.