The Senator’s bill would prohibit bonuses to federal contractors for projects that are over budget or behind schedule
WASHINGTON—U.S. Senator Joni Ernst (R-IA), a tireless advocate for cutting wasteful government spending, is continuing her efforts to make Washington squeal, this time introducing legislation to rein in excessive bonuses to contractors of federal projects that do not meet outcome standards.
“Over budget, behind schedule, and millions of dollars’ worth of bonuses? It’s hard to believe, but federal contractors rake in millions in bonuses even for projects that go nowhere. That kind of unaccountability is simply ridiculous,” said Senator Joni Ernst. “My bill would ensure Iowa taxpayers know where their money is being spent by preventing the federal government from awarding bonuses for work that doesn’t meet the requirements of a contract. When hard-working Iowans set out on a task, they see to it that the job gets done. Federal contractors need to do the same.”
Senator Ernst’s Bogus Bonus Ban Act would prohibit the payment of bonuses to government contractors for unsatisfactory performances and outcomes, including projects that are over budget or behind schedule, and require public disclosure of bonuses that are awarded.
Many federal projects provide an “award fee,” or bonus, that a contractor can earn in addition to other payments. While federal regulations state that an award fee “shall not be earned if the contractor’s overall cost, schedule, and technical performance in the aggregate is below satisfactory,” federal agencies continue to award bonuses to contractors for unsatisfactory performance.
The Bogus Bonus Ban Act requires new government contracts using award fees to link the awarding of bonuses to outcomes, defined in terms of program cost, schedule, and performance.
It directs every federal agency to: