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B-109181 1 (1971-04-07)

handle is hein.gao/gaobaafig0001 and id is 1 raw text is: COMPTROLLER GENERAL OF THE UNITED STATES - WASHINGTOW. D.C. 2=54, APR ? LM095595 Dear Mr. Chairman: By letter dated February 20, 1970, our Office replied to your letter dated February 6, 1970, wherein you advised us that a hearing would be held on March 11, 1970, relative to H.R. 3345 and H.R. 11245, 91st Congress. These identical bills would require that certain sub- contractors be identified on bids for public works contracts. An iden- tical bill, H.R. 10, has been introduced in the 92nd Congress. In our letter of February 20, 1970, we advised you that our Office had no audit experience in the area and that we had no recommendations to make regarding the merits of the proposed legislation. Subsequently, we have made a review of this matter. In this review, we were unable to obtain any significant new information not already received by your Committee in the testimony over the years. Since we noted, however, a lack of uniformity in agency procedures related to this area, we are sending a copy of this letter to the Commission on Government Procurement. As stated in the subject bills requiring the naming of subcontrac- tors in bids on certain Government construction work, the intent of such a requirement would be to promote fair competition among prime contrac- tors and subcontractors and to curb a practice referred to as bid shop- ping, i.e., efforts of a prime contractor, after award of a contract, to secure lower subcontract prices. The proposed legislation defines a subcontractor as an individual or firm with whom the prime contractor proposes to enter into a subcon- tract for manufacturing, fabricating, installing, or otherwise perform- ing work pursuant to the specifications. The categories of subcontrac- tors to be listed (named) by the bidders would include plumbing, heating, air conditioning and ventilation, electrical, elevators, painting, masonry, tile and terrazzo, granite, lathing and plastering, roofing, and all other categories comprising more thii-n 31 percent of the total estimated cost of the contract. Other categories could be included at KflTU AJhI'dSDCADV 'nqv, i, - • ~ ~ ~ ~ ~ ~ 1 4 , 1 -111'.1% J,,i I/. - 1/I

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