Martinez Job Training Partnership Accountability Act of 1989

Martinez Job Training Partnership Accountability Act of 1989 - Amends the Job Training Partnership Act (the Act) to establish additional fiscal controls and procurement accountability requirements.

Defines "profit" to mean any revenue in excess of expenditures.

Increases the maximum portions of specified program funds for a service delivery area which may be used for administrative costs, or for a combination of administrative and work experience program costs.

Requires the Secretary of Labor to define all cost categories comprehensively.

Establishes procurement standards with which all recipients, subrecipients, or service providers receiving funds under the Act must adequately demonstrate that they have complied. Directs the Secretary to issue various regulations relating to such standards, prohibiting conflicts of interest or restrictions of competition, and requiring recipients to perform cost and price analyses in connection with each procurement action, including contract modifications.

Requires the Secretary to issue a notice of proposed rulemaking within three months, allow at least 60 days for public comment, and issue final regulations within six months.

 
HR 803 IH
101st CONGRESS
1st Session
 H. R. 803
To amend the Job Training Partnership Act to establish additional fiscal
controls.
IN THE HOUSE OF REPRESENTATIVES
February 2, 1989
Mr. MARTINEZ introduced the following bill; which was referred to the
Committee on Education and Labor
A BILL
To amend the Job Training Partnership Act to establish additional fiscal
controls.
  Be it enacted by the Senate and House of Representatives of the United
  States of America in Congress assembled,
SECTION 1. SHORT TITLE.
  This Act may be cited as the `Martinez Job Training Partnership
  Accountability Act of 1989'.
SEC. 2. FISCAL CONTROLS AND ACCOUNTABILITY.
  (a) DEFINITION OF PROFIT- Section 4 of the Job Training Partnership Act
  (29 U.S.C. 1503) is amended by adding at the end the following new paragraph:
  `(30) The term `profit' means any revenue in excess of expenditures.'.
  (b) LIMITATIONS ON CERTAIN COSTS- (1) Section 108(a) of the Act (29
  U.S.C. 1518(a)) is amended by striking `15 percent' and inserting `20
  percent'.
  (2) Section 108(b) of the Act (29 U.S.C. 1518(b)) is amended by striking
  `30 percent' and inserting `35 percent'.
  (3) Section 108 is amended by adding after subsection (e) the following
  new subsection:
  `(f) The Secretary shall comprehensively define all cost categories.'.
  (c) PROCUREMENT ACCOUNTABILITY- (1) Part D of title 1 of the Act is amended
  by adding at the end the following new section:
`PROCUREMENT
  `SEC. 172. Any recipient, subrecipient, or service provider receiving funds
  under this Act shall adequately demonstrate that it has complied with the
  following procurement standards:
  `(1) The recipient shall use its own procurement procedures and regulations,
  provided that such standards are at least as restrictive as the standards
  identified in this section and other applicable Federal law.
  `(2) The recipient shall not engage in any conflict of interest,
  actual or apparent. No employee, officer, or agent of such recipient
  shall participate in the selection, or in the award or administration of a
  contract supported by Federal funds if such a conflict would be involved. The
  Secretary shall establish regulations outlining which activities create
  a presumption of such a conflict and providing for penalties, sanctions,
  or other disciplinary actions for violations.
  `(3) The recipient shall maintain records sufficient to detail the
  significant history of a procurement. Such records shall include, but
  are not necessarily limited to, rationale for the method of procurement,
  selection of contract type, contractor selection or rejection, and the
  basis for the contract price.
  `(4)(A) All procurement transactions shall be conducted in a manner providing
  full and open competition. The Secretary shall establish regulations
  outlining examples of situations considered to be restrictive of competition.
  `(B) The recipient shall have written selection procedures for procurement
  transactions. Such procedures shall ensure that all solicitations (i)
  incorporate a clear and accurate description of the material, product
  or service to be procured, and (ii) identify all requirements that the
  offerors shall fulfill and all other factors to be used in evaluating bids
  or proposals.
  `(5) Procurement by noncompetitive proposals is procurement through
  solicitation of a proposal from only one source, or after solicitation of
  a number of sources, competition is determined inadequate. The Secretary
  shall issue regulations (i) outlining the conditions under which procurement
  by noncompetitive proposals may be used, and (ii) requiring cost analysis,
  including verification of the proposed cost data, the projections of the
  data, and the specific elements of cost and profit.
  `(6)(A) The Secretary shall issue regulations requiring all recipients
  to perform a cost analysis and a price analysis in connection with each
  procurement action, including contract modifications. The method and
  degree of such analysis shall depend upon the facts of the particular
  procurement situation.
  `(B) If a profit or fee is included in the price, any recipient shall
  negotiate profit as a separate element of the price for each contract. The
  Secretary shall issue regulations outlining factors to be considered in
  determining the reasonableness of any profit.
  `(C) The cost plus a percentage of cost method of contracting shall not
  be used.'.
  (2) The table of contents for such part is amended by adding after the
  item relating to section 171 the following new item:
`Sec. 172. Procurement.'.
SEC. 3. NOTICE OF PROPOSED RULEMAKING.
  Not later than 3 months after the date of the enactment of this Act,
  the Secretary of Labor shall issue a notice of proposed rulemaking with
  respect to this title and shall allow not less than 60 days for public
  comment. Final regulations shall be issued not later than 6 months following
  such date of enactment.