House Unanimously Passes Renzi Bill Seeking Payment for AZ Small Businesses

Legislation Requires Park Service to compensate small business owners for defaulted liabilities WASHINGTON, D.C. - The House of Representatives on April 17 unanimously passed legislation offered by U.S. Rep. Rick Renzi (AZ-01) that directs the National Parks Service (NPS) to make payments to several Grand Canyon Subcontractors who have been denied compensation after the general contractor hired by the NPS went out of business and defaulted on its invoices. The legislation will compensate the subcontractors for up to $1.3 million, the total amount the general contractor failed to pay when it went out of business. "I am pleased the House acted unanimously today to compensate these Arizona small businesses for the work they performed for the National Park Service," said Rep. Renzi. "Nearly 40 small businesses across Arizona, Utah, and Washington have been devastated by the unfortunate contract mismanagement between the United States Park Service and Pacific General, Inc (PGI). Many of these businesses are bankrupt today because they did not receive money they are owed." According to invoices sent to the Park Service, the contractor certified that payments were being sent to subcontractors and suppliers. However, in January 2004, complaints were received by numerous subcontractors that they had not received payment. In total, the general contractor did not pay $1.3 million to subcontractors who performed the work. In a review of the situation, it was discovered that the National Park Service had failed to ensure that the contractor had obtained the necessary payment and performance bonds required by law. Renzi's legislation authorizes the National Park Service to pay the subcontractors who have performed the work at the Grand Canyon National Park and were not paid by the defunct contractor. This legislation only addresses this situation in the Grand Canyon National Park and the $1.3 million that the Park paid to the defunct contractor for work performed by the subcontractors. The Senate must now approve the legislation before it is signed into law.