U.S. Sen. Joni Ernst (R-IA) on July 17 sponsored legislation to prohibit bonuses being paid to federal contractors for projects that are over budget or behind schedule.

“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,” Sen. Ernst said on Wednesday. “That kind of unaccountability is simply ridiculous.”

Sen. Ernst introduced the Bogus Bonus Ban Act, S. 2145, with two Republican cosponsors to forbid the U.S. government from paying bonuses to federal contractors for unsatisfactory performance and outcomes, according to her office’s bill summary.

“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,” said Sen. Ernst. “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.”

Additionally, S. 2145 would direct each federal agency to set standards for determining what agency officials are authorized to approve; establish how contractor performance may be judged, as well as standards for determining the percentage of the available award fee that contractors should be paid; and to regularly collect data on award and incentive fees paid to contractors, among other provisions.

The bill has been referred to the U.S. Senate Homeland Security and Governmental Affairs Committee for consideration.

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