Sending Office: Honorable Scott H. Peters
Increase Accountability: Cosponsor the Stop Unfair Bid Shopping Act
Supporting organizations: American Subcontractors Association; Finishing Contractors Association, International; Mechanical Contractors Association of America; National Electrical Contractors’ Association; Sheet
Metal and Air Conditioning Contractors’ National Association
The federal government has an obligation to taxpayers to make sure that their money is spent responsibly. In federal construction contracts, prime contractors can engage in a practice called bid shopping. Bid shopping occurs when a contract is awarded for
a set amount and the prime contractor switches subcontractors, post-award, to lessen the costs and pocket the profits. The federal government still pays the original contracted amount to the prime contractor, resulting in wasteful overspending. Bid shopping
not only squanders taxpayer money, but it also hurts the workers who were initially hired to do the job.
This is why we are reintroducing the Stop Unfair Bid Shopping, or SUBS Act
(H.R. 7221 from the 115th Congress), a bill that would deter this practice by requiring prime contractors to list all significant subcontracted agreements and post-award modifications. The SUBS Act applies to federal construction contracts using
sealed bid procedures awarded in an amount over $1,500,000 and requires all subcontractors performing work valued at over $100,000 to be listed. Changes in subcontracts resulting in savings of 10% or more may be returned to the federal government. This bill
does not cover the Department of Defense, but does cover the United States Army Corps of Engineers.
Please consider becoming an original cosponsor of this important bill which would help to cut down on wasteful spending and increase transparency. To cosponsor or for more information, please contact Hannah Stern in Rep. Peters’ office at
Member of Congress
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