U.S. Congressman Blake Farenthold Chairs Hearing on Federal Government’s Use of Design-Build Contracts

As Chairman of the House Oversight Subcommittee on the Federal Workforce, I held a hearing earlier this week looking at the federal governments use of design-build contracts. A design-build contract is when federal agencies competitively procure both the architecture/engineering and construction of projects at the same time.

In fiscal year 2012, the Federal Government spent over $41 billion on construction and architect and engineering (A&E) contracts. That’s eight percent of the roughly $500 billion the federal government spends annually on goods and services.

We want to make sure the government awards contracts to those companies who will do the job best, not the companies who are the best at competing for contracts. As government watchdogs, it’s our job to make sure these construction and A&E contracts are managed efficiently and effectively, and that taxpayer money is spent wisely.

Also discussed during the hearing was contracting reform legislation offered by Congressman Sam Graves (R-MO-06), that would, in part, mandate that agencies use a “two-step process” for design-build contracts valued at or over $750,000 which will allow for more competition while saving businesses and taxpayers money.

During my questioning, I engaged with contracting experts from the U.S. Army Corps of Engineers, an architectural and engineering firm, and a general contracting firm.

"Does the proposed legislation lower the bar for new entrants while still getting quality work for the taxpayers’ dollars?” I questioned.  Mr. Dalluge responded, “Sir, in my opinion, this bill goes a long way to providing more clarity and transparency to the [contracting] system, which will invite more people and allow small firms to compete better.”