House Passes Bill Authorizing Payment for AZ Small Businesses

Legislation that allows the National Park Service to compensate business owners awaits Presidents signature WASHINGTON, D.C. - The House of Representatives today passed S. 2739 - Consolidated Natural Resources Act of 2008. This legislation is comprised of over 60 individual bills and includes a provision, previously passed by the House, which was introduced by Congressman Rick Renzi (AZ-01). Congressman Renzis original legislation (H.R. 1191) authorizes the National Park Service (NPS) to make payments to several subcontractors who performed work at the Grand Canyon National Park and have been denied compensation for years because the general contractor hired by the NPS went out of business and defaulted on its invoices. The subcontractors can now be compensated up to $1.3 million, the total amount the general contractor failed to pay. Existing law prohibits the NPS from directly compensating subcontractors due to a lack of direct contractual obligation. The House passed S. 2739 by a vote of 291-117. The Senate approved the bill by a vote of 91-4 on April 10, 2008. I am pleased the House today voted to compensate these small businesses for the work they performed for the National Park Service, said Rep. Renzi. Nearly 40 small businesses across Arizona, Utah, and Washington have been devastated by the unfortunate contract mismanagement between the United States Park Service and the general contractor. Many of these businesses are bankrupt today because they did not receive money they are owed. I really appreciate all the efforts of Rep. Renzi to get this bill passed, said Southwest Waterworks owner Mike Richardson. The effects of the losses we incurred have been an almost insurmountable obstacle for our small company. This hardship has not only affected the company but also has personally affected me, my business partner, and our families. According to invoices sent to the Park Service, the contractor, Pacific General Inc. (PGI), certified that payments were being sent to subcontractors and suppliers. However, in January 2004, complaints were received by numerous subcontractors that they had not received payment. In total, the general contractor did not pay $1.3 million to subcontractors who performed the work. In a review of the situation, it was discovered that the NPS had failed to ensure that the contractor had obtained the necessary payment and performance bonds required by law. Renzis legislation authorizes the National Park Service to pay the subcontractors who performed the work at the Grand Canyon National Park and were not paid by the defunct contractor. This legislation only addresses this situation in the Grand Canyon National Park and the $1.3 million that the NPS paid to the defunct contractor for work performed by the subcontractors. H.R. 1191 originally passed the House on April 17, 2007. S. 2739 now awaits the Presidents signature to become law.