SHOP 'TIL THEY DROP--SUBCONTRACTORS TRY TO STOP 'BEST VALUE' PRACTICE

It is a common, often damaging practice that takes place in virtually every facet of the construction industry: once a bid on federal work is won, the prime contractor approaches its subcontractors and tells them to lower their prices or risk losing the subcontracts. Bid shopping is currently being exposed on Capitol Hill. Testimony on behalf of the American Subcontractors Association (ASA) revealed that business practices encouraging lower construction quality are rampant in the marketplace for subcontracted work on federal construction projects. ASA is the principal advocate of proposed legislation that would ensure that subcontractors' bid prices for work on federal construction projects are respected when the government makes a final decision on who will manage projects. The bill calls for amendment of the Federal Acquisition Regulation to require that each bid on federal construction projects in excess of $1 million include the name, location of the place of business, and nature of the work of each subcontractor with whom the bidder, if awarded the contract, will subcontract work for amounts in excess of $100,000. The language of the bill would protect the government's and prime contractors' interests by preserving the competitive bidding process through bid day and by allowing substitution of the subcontractors listed in the original bid in limited circumstances.

• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/oclc/11660022
• Corporate Authors:

  Scranton Gillette Communications

  380 E Northwest Highway, Suite 200
  Des Planes, IL  United States  60016-2282
• Publication Date: 2000-8

Language

• English

Media Info

• Pagination: p. 22
• Serial:
  • Roads & Bridges
  • Volume: 38
  • Issue Number: 8
  • Publisher: Scranton Gillette Communications
  • ISSN: 8750-9229
  • Serial URL: http://www.roadsbridges.com/rb/

Subject/Index Terms

• TRT Terms: Bid rigging; Competitive bidding; Construction industry; Contract administration; Contractors; Federal government; Legislation; Quality of work; Subcontractors
• Identifier Terms: American Subcontractors Association; Federal Acquisition Regulation
• Uncontrolled Terms: Bid shopping
• Subject Areas: Administration and Management; Construction; Highways; Law; I10: Economics and Administration; I50: Construction and Supervision of Construction;

Filing Info

• Accession Number: 00798407
• Record Type: Publication
• Files: TRIS
• Created Date: Sep 14 2000 12:00AM