AGC Opposes Automatic Debarment Legislation

On July 9, AGC sent a detailed letter and joined with an industry business coalition in a letter to the House of Representatives strongly  opposing legislation  automatically debarring federal contractors for any violation—or even claims thereof—of the Fair Labor Standards Act.  The legislation came in the form of an amendment introduced by Rep. Keith Ellison (D- Minn.). The Ellison Amendment would prohibit the use of funds allocated under the U.S. Army Corps of Engineers Civil Works and Department of Energy funding bill from being used to enter into a contract with any person who discloses, via the Federal Awardee Performance and Integrity Information System (FAPIIS), a civil, criminal, or administrative proceeding that resulted, or could have resulted in a finding of fault and liability related to the Fair Labor Standards Act (FLSA). As of press time, the amendment has not been voted on. In its letter, AGC noted that debarment represents the absolute last, most dramatic measure that the government may take to protect the public interest from a truly dishonest contractor that willfully or recklessly violates the law. Debarment is the business equivalent of the death penalty for a contractor that relies upon government contracts to sustain its business. AGC opposes the Ellison Amendment because the Federal Acquisition Regulation already has a well-reasoned debarment process, and the amendment would automatically debar contractors for violations of the FLSA five years ago—regardless of remedial actions taken by contractors, among other reasons. Legislation similar to the Ellison amendment was adopted in last minute changes to the House Transportation and Department of Defense spending bills.  AGC has met with members of the House and Senate to educate them about the unintended consequences of the Ellison Amendment to help ensure that such short-sighted legislation is not enacted into law. For more information, please contact Jimmy Christianson at (703) 837-5325 or christiansonj@agc.org.