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Real Property & Development Review

No Outsourcing of Services on Public Contracts

Posted in Construction

New concepts introduced at the Oregon Legislative Assembly include a law that prevents outsourcing of services performed on public works projects.

A copy of Proposed HB 2966 can be found here:

www.leg.state.or.us/11reg/measpdf/hb2900.dir/hb2966.intro.pdf

In short, with some minor exceptions, public agencies would be prevented from awarding contracts to bidders who perform services outside the US.  Contractors would be required to certify that services will be performed in the US.

Repercussions for failing to comply include:

1.  rescission or termination of contract

2.  liquidated damages

3.  specific performance from contractor

The proposed law is consistent with other protective measures seeking to ensure tax payer funds support the US economy(like Buy America Type Legislation).  Although prevailing wage laws provide some protection against seeking overseas services at lower wages, the point is to keep people occupied here in the US…..

Failing to certify or falsely certifying could lead to far greater penalties in connection with running afoul of the recently enacted Oregon False Claims Act -Oregon Laws Chapter 292 (based on the Federal False Claims Act).  Those penalties include steep monetary fines, suspension, debarment and other severe repercussions…