Statement of Administration Policy: S. 1360 - Amend Indian Financing Act of 1974

(House)
(Burdick (D) North Dakota and four others)

The Administration opposes S. 1360 and will work in conference to delete provisions that would:

—    increase the aggregate amount of loans which could be guaranteed under the Indian Financing Act from $200 to $500 million. While an increase to $300 million is acceptable, anything above this amount would be unreasonable given the need to control and reduce the Federal budget deficit;

—    allow a bonus to Federal contractors who hire Indian subcontractors. Such a change would place administrative burdens on the Federal contracting agencies, increase the cost of Federal contracts, and require the development of a new body of Federal procurement procedures; and

—    authorize the Secretary to provide supplemental surety bond guarantees on bonds already 80 percent guaranteed by the Small Business Administration. With the Federal Government bearing the entire risk of the surety bond, underwriters would have little incentive to ensure that the contractor receiving the bond is capable of successfully fulfilling the terms of the contract.