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H.R. 679, Construction Consensus Procurement Improvement Act of 2017 1 (February 16, 2017)

handle is hein.congrec/cbo3364 and id is 1 raw text is: 




                   CONGRESSIONAL BUDGET OFFICE
                              COST   ESTIMATE

                                                                February 16, 2017



                                   H.R.   679
      Construction   Consensus   Procurement Improvement Act of 2017

   As ordered reported by the House Committee on Oversight and Government Reform
                               on February 2, 2017


H.R. 679 would modify the federal government's procedures for awarding design and
construction contracts for federal facilities and would prohibit the use of reverse auctions
for such awards. Specifically, the legislation would require the selection process for
designing and constructing any federal facility with a cost of more than $3 million to use
two phases. In phase one, firms would provide basic information on their experience and
past performance; agencies then would select a few firms and invite them to submit a more
detailed proposal in phase two.

CBO  reviewed information on the process of awarding construction contracts by the Army
Corps of Engineers (Corps) and the General Services Administration (GSA), two agencies
that oversee construction of many federal facilities. Those agencies often use a two-phase
process to select firms for construction projects but can also use other acquisition strategies
to award contracts. On the basis of information from those agencies, CBO estimates that
implementing H.R. 679 would cost about $600,000 a year and $3 million over the
2018-2022 period, primarily for the Corps, because those agencies would incur somewhat
higher costs to evaluate two rounds of proposals before selecting a firm for each
construction project.

CBO  also reviewed information on the use of reverse auctions in government procurement
contracts by the Corps and GSA. Those agencies have found that using reverse auctions in
complex procurements does not consistently result in lower procurement costs than would
result from other methods such as sealed bids or negotiated procurements. Those agencies
generally do not use reverse auctions to obtain such services. On that basis, CBO estimates
that implementing H.R. 679 would not result in a significant change in the government's
bidding practices and thus would not have a significant effect on the federal budget.

Because enacting the bill could affect direct spending by agencies not funded through
annual appropriations, pay-as-you-go procedures apply. CBO estimates, however, that any
net change in spending by those agencies would be negligible. Enacting the bill would not
affect revenues.

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