Job Training Partnership Accountability Act of 1989

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 costs 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 a cost analysis and price analysis in connection with each procurement action, including contract modifications.

Requires each recipient, subrecipient, and service provider to maintain records of revenues and expenditures, for the duration of the grant, subgrant, contract, or other agreement. Requires all expenditures of funds received under the Act to be recorded and reported in the proper cost categories.

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 900 IH
101st CONGRESS
1st Session
 H. R. 900
To amend the Job Training Partnership Act to establish additional fiscal
controls.
IN THE HOUSE OF REPRESENTATIVES
February 7, 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 `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 of the Act 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. 174. (a) 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, subrecipient, or service provider 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, subrecipient, or service provider shall not engage in
  any conflict of interest, actual or apparent. No employee, officer, or agent
  of such recipient, subrecipient, or service provider 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, subrecipient, or service provider 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, subrecipient, or service provider 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.
  `(b) The Secretary shall issue regulations (1) outlining the conditions
  under which procurement by noncompetitive proposals may be used, and
  (2) requiring cost analysis, including verification of the proposed cost
  data, the projections of the data, and the specific elements of cost and
  profit. For purposes of this subsection, 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.
  `(c)(1) The Secretary shall issue regulations requiring each recipient
  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.
  `(2) 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.
  `(3) 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 173 (as redesignated by subsection (d)) the following
  new item:
`Sec. 174. Procurement.'.
  (d) TECHNICAL AMENDMENTS- (1) The second section 172 of the Act (as added by
  section 714(e) of Public Law 100-628), relating to construction of provisions
  of the Job Training Partnership Act, is redesignated as section 173.
  (2)(A) The item in the table of contents of such part relating to such
  section is amended to read as follows:
`Sec. 173. Construction.'.
  (B) Such table of contents is further amended by inserting after the item
  relating to section 171 the following new item:
  `Sec. 172. Presidential awards for outstanding private sector involvement
  in job training programs.'.
SEC. 3. RECORDKEEPING.
  Section 165 of the Act (29 U.S.C. 1575) is amended by adding at the end
  the following new subsections:
  `(d) Each recipient, subrecipient, and service provider shall, for the
  duration of the grant, subgrant, contract, or other agreement, maintain
  records of revenues and expenditures.
  `(e) All expenditures of funds received under this Act shall be recorded
  and reported in the proper cost categories.'.
SEC. 4. 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 Act 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.