Now Congress is stepping in, trying to repair some of the damage done by a flawed federal contracting process and a contractor that went belly-up.

"Many of these businesses are bankrupt today. Many of their sons and daughters aren't able to go to college because the federal government owes them money for work that they performed in the Grand Canyon," said Rep. Rick Renzi, R-Ariz.

His legislation would allow the Interior Department to pay those companies that were shorted when the Park Service's lead contractor for the Grand Canyon work, Pacific General, Inc., went out of business.

"This is an imperfect solution to a difficult problem," said Rep. Raul Grijalva, D-Ariz.

"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."

In 2002 and 2003, the Park Service awarded 43 task orders for various projects to Pacific General to build entrance stations at North Rim and Desert View, rehabilitate cabins at North Rim, upgrade the Colorado River bridge at Phantom Ranch and build a new South Rim wastewater treatment plant.

The Park Service paid an estimated $10 million over time, $1.3 million of which was supposed to be paid to its subcontractors.

But Pacific General went out of business, leaving 38 subcontractors - including R&W Excavating in Hildale, Utah - unpaid.

Moreover, the Park Service failed to require a surety bond from the general contractor, contrary to federal law, leaving the Park Service and the subcontractors without recourse.

"We kind of got hung out there, along with several other contractors," said Ron Steed, who handled the Grand Canyon work for R&W Excavation, which claims it took a $300,000 hit when Pacific General closed its doors.

Steed said R&W paid its workers, but has yet to receive payment from the government.

R&W and the seven other subcontractors have sued the Park Service,

claiming the agency's contract officer continued to award contracts to Pacific General, even though he knew the company had not been paying its subcontractors.

Attorneys representing the Park Service have asked the judge in Phoenix to dismiss the case, arguing the subcontractors did not exhaust their other avenues for administrative appeals before filing the federal lawsuit.

"Contractors go south on you sometimes," said Steed, but in this case, "the Park Service kept issuing contracts knowing that these guys couldn't bond them and these guys kept issuing contracts knowing that people weren't getting paid."

An auditor, investigating the issue, found the contract files missing or in disarray.

Federal law prevents the Park Service from paying the subcontractors directly.

Renzi's bill would change that. It passed the House on Tuesday and now goes to the Senate.