House votes to limit federal contracts with delinquent companies

 

The House late Monday adopted an amendment offered by Rep. Alan Grayson (D-Fla.) to prevent the Departments of Transportation and Housing and Urban Development from entering federal contracts with delinquent companies.

Approved by voice vote, Grayson's amendment to the 2015 Transportation-Housing and Urban Development appropriations bill would prohibit the use of funds for awarding such contracts. It would apply to any company that has been convicted of or currently charged with a range of crimes. 

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Those crimes would include fraud, embezzlement, theft, bribery, tax evasion and falsification of records. 

The amendment would further prohibit contracts with companies that have delinquent federal taxes of more than $3,000 within a three-year period of the contract.

Grayson offered another amendment that would prohibit appropriations to be used to award bonuses to contractors for projects that are behind schedule or over their budgets. But it was struck down on a point of order on the basis that it would change existing law, which is prohibited in House appropriations bills.