WASHINGTON—Today, the Construction Consensus Procurement Improvement Act of 2021 (H.R. 26), introduced by House Oversight Committee Ranking Member James Comer (R-Ky.) and Rep. Ro Khanna (D-Calif.), passed the U.S. House of Representatives with unanimous, bipartisan support. Ranking Member Comer applauded House passage in the statement below.
“The federal government must spend taxpayer dollars on the best possible products at the best price. The Construction Consensus Procurement Improvement Act of 2021 ends reverse auctions for complex design and construction services after these contracts resulted in projects that are not completed properly, on time, or on budget. While reverse auctions are beneficial in some areas of the federal government, they are failing here. The Construction Consensus Procurement Improvement Act could save the American people a great deal of money, time, and frustration. I applaud today’s House passage of this legislation and urge the Senate to quickly take it up to ensure taxpayers’ dollars are used efficiently and effectively.”
The Construction Consensus Procurement Act prevents the federal government’s use of reverse auctions for complex design and construction services. Reverse auctions allow the sellers to bid down the price of a project. Use of reverse auctions typically results in the contractor with the lowest bid winning the contract. In the case of complex design and construction projects, a reverse auction fails to factor in several substantial variables about the project. Many of these contracts have actually cost taxpayers substantially more money than the contract originally intended due to unanticipated complications and time overruns. Reverse auctions in other areas of the federal government, such as with purchasing products, have proven to be effective. As a result, this legislation ensures reverse auctions are still available to be used for those types of acquisitions.