United States House Select Committee On Government Contracts - Legislation

Legislation

In spite of the all of the criticisms, the committee's investigation did lead to new legislation in 1862 for the prevention of fraud. Congress enacted legislation requiring that the Secretaries of the Navy, Interior, and War should put every contract made by them, or by officers appointed it, in writing and should have them signed with the names of the contractors, and also to file a copy in a "Returns Office" of Department of the Interior within 30 days. The officers making such contracts were to swear to them, and penalties were prescribed for violations of the law. The quartermaster-general of the Army convinced Congress that the law could not be then enforced, so congress enacted legislation on July 17 delaying its enforcement until the beginning of 1863.

Two months after the law began to operate, Congress resolved that the chief of any bureau of the navy department should be at liberty to reject the offers of those who had failed as principals or sureties on previous contracts to furnish naval supplies. In those made with the same bureau, one contractor could not be received as surety for another; every contract should require the delivery of a specified quantity, and no bids having nominal or fictitious prices could be considered.

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