Magazine article Business Credit

'Bid Shopping' Ban on Federal Construction Gains Support in Congress

Magazine article Business Credit

'Bid Shopping' Ban on Federal Construction Gains Support in Congress

Article excerpt

Prohibition Would Include Online Reverse Auctions

A Large majority of people working in the construction industry believe that the practice of "bid shopping" is unethical, and there is growing support in Congress to put a stop to the practice on federal contracts. The American Subcontractors Association (ASA) hailed the Construction Quality Assurance Act of 2005 (H.R. 2834) introduced on June 9 by Rep. Paul Kanjorski, D-Pa., and seven co-sponsors, as a solution that would bring much-needed reform within the federal procurement arena. The legislation has picked up the support of six more members of Congress since then.

Kanjorski introduced the Construction Quality Assurance Act in the U.S. House of Representatives to spare construction subcontractors and prime contractors from the deceptive practice of bid shopping on federal government construction contracts over $1 million. He explained the significance of the legislation: "The goal of the Construction Quality Assurance Act is to ensure that bid shopping is eliminated from the federal construction contracting process. Ending this practice will ensure that the taxpayers receive the value and quality they deserve for their hard-earned tax dollars. The Construction Quality Assurance Act would remove the financial incentive of bid shopping by penalizing the contractors that participate in the deceptive practice."

Since ASA's Construction Industry Legislative Institute, which took place June 12-14, the legislation has gained six co-sponsors. During the Legislative Institute, subcontractors visited Capitol Hill to ask representatives to co-sponsor the legislation. …

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