Raúl Grijalva: “during fiscal years 2002 and 2003, Grand Canyon National Park entered into construction contracts worth $17 million with…”

“during fiscal years 2002 and 2003, Grand Canyon National Park entered into construction contracts worth $17 million with a general contractor called Pacific General, Incorporated, known as PGI. In January 2004, numerous subcontractors employed by PGI notified National Park Service that they were not receiving payment. After an investigation, it was discovered that PGI was diverting Federal funds which should have gone to the subcontractors. PGI eventually declared bankruptcy. It was further discovered that in a clear violation of Federal policies, the park had failed to require PGI to post a surety bond as a condition of the contract. The agency is now prohibited from paying the subcontractors directly because the funds appropriated for those contracts have already been paid to PGI. Overall, the subcontractors are owed about $1.3 million. H.R. 1191 authorizes the Secretary to use $1.3 million in available funds from Grand Canyon National Park to pay the subcontractors. Applicants for the funds would have to verify the amount they are owed, demonstrate that they have exhausted all reasonable legal avenues to recoup amounts owed to them by PGI, and provide written statements that the amount they are seeking represents payment in full. Mr. Speaker, this is an imperfect solution to a difficult problem. However, these small business owners who provided quality services to the Federal Government in good faith should not have to wait any longer to receive payment.”