Government Reform panel passes contractor database bill

A bill to set up a public database on federal contractor performance and misconduct won approval Thursday from the House Oversight and Government Reform Committee despite Republican concerns the measure could allow unfair attacks on contractors as well as end up barring large companies from receiving government contracts.

Introduced by Rep. Carolyn Maloney, D-N.Y., and passed by voice vote, the measure (H.R. 3033) would require creation of a publically accessible list of any completed criminal, civil and administrative proceedings against federal contractors in the last five years. The database would be maintained by the General Services Administration, though other federal agencies could input data. Maloney helped create a similar database for New York City as a city council member.

"This is a common-sense measure that would allow the federal government to track fraudulent contractors," Oversight and Government Reform Chairman Henry Waxman, D-Calif., said. Democrats said the bill would give federal acquisition officers a standard source of information on contractor performance. Existing databases maintained by nongovernment groups are incomplete, supporters say.

However, Oversight and Government Reform ranking member Tom Davis, R-Va., said the bill could lead to a "blacklist" used to intimidate contractors. "While the information would have a fair purpose for acquisition officers, I fail to see the value of placing it on a public Web site," Davis said.

Another sticking point was a provision in the bill that requires debarment proceedings against any company that has faced two adverse rulings within three years. Once debarred, a company would be ineligible for further government contracts.

Davis said the measure's "two-strikes-and-you're-out language," if unaltered, would cause debarment of many large contractors. Due to their many contracts, bigger government vendors are more likely to face more adverse actions. Davis noted the Boeing Co. in recent years has entered into various settlements and had several judgments against it involving alleged violations of federal law.

"If those adjudications are included under this bill's terms, Boeing and a great many other firms could face automatic debarment proceedings," Davis said.

The committee approved an amendment adopting a version of the bill passed Tuesday by the House Oversight and Government Reform Government Management Subcommittee. In a nod to Republican concerns, the amendment allows listing only completed proceedings in the database and lets contractors rebut entries. The committee also amended the bill to clarify that settlements reached before suspension or debarment proceedings are completed will be not included in the database. Both amendments passed on voice votes.

With Democrats backing the bill, committee Republicans did not attempt to block it. But Davis said even with the amendments, he would oppose it if it reaches the House floor. "This bill is not ready for prime time," he said.