OFFICIALS LEGISLATION INTEREST GROUPS PUBLIC STATEMENTS COMMITTEES VETOES

Construction Consensus Procurement Improvement Act of 2021

Floor Speech

Date: Jan. 5, 2021
Location: Washington, DC
Issues: Government Operations Infrastructure

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Mr. Speaker, I rise in support of H.R. 26, the Construction Consensus Procurement Improvement Act of 2021. This bill would prohibit the Federal Government's use of reverse auctions for complex design and construction services. A reverse auction is one where the sellers bid down the price instead of the buyers driving up the price. Most often, the contractor with the lowest bid wins the contract. While we all wish for the Federal Government to get the lowest price, it is important that these complex projects are done properly, on time, and on budget.

Reverse auctions are not always appropriate for the types of services this bill deals with because design-build or complex construction projects often have variables which cannot be contemplated during the original bidding process.

The use of reverse auctions can often result in products that are subpar and, ultimately, over budget. Often, the winning low bid is nowhere near the final cost to the government after unanticipated factors lead to time and budget overruns.

Specifically, the Office of Federal Procurement Policy found that, for complex design and construction contracts, the expertise required to complete these projects was not built in to reverse auction bids.

Construction projects have a high degree of variability and the reverse auction process often does not yield the low costs intended for the taxpayer. This legislation is tailored to ensure that products and services which do not benefit from the reverse auction process will not be affected.

Going forward, we must continue to fight for the best possible products at the best price to the taxpayer. That includes ensuring benefits are brought to our constituents on time and on budget. This legislation will help to achieve that.

Mr. Speaker, I thank my colleague, Representative Ro Khanna, for his work and support on this legislation.

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Mr. Speaker, this is a sensible and needed bipartisan reform. I am hopeful to see similar bipartisan procurement reform bills this Congress, and I urge my colleagues to support this legislation.

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