Panel approves measure killing $10 billion US VISIT contract

The legislation also includes language to close loopholes allowing the Homeland Security Department to contract with off-shore companies.

A potentially $10 billion contract to Bermuda-based Accenture Ltd., could be nullified under an amendment approved, 35-17, by the House Appropriations Committee on Wednesday.

The amendment, offered by Reps. Rosa DeLauro, D-Conn., and Marion Berry, D-Ark., would negate the Homeland Security Department's contract with the company for U.S. VISIT, its new system to track foreign visitors entering and exiting the country.

Rep. James Moran, D-Va., cautioned lawmakers that negating the contract would ensue a lawsuit and delay improved border security. But DeLauro and other lawmakers argued it was anti-American to award a contract to a company headquartered offshore to intentionally avoid paying U.S. taxes.

Other panel members said Accenture pays a higher percentage of taxes than the two other domestic bidders it beat out for the award -- Lockheed Martin, which is based in Maryland, and Computer Sciences Corp., located in California.

The Rules Committee will decide if the provision should remain in the legislation before it is brought to the House floor for a vote.