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106th CONGRESS
2d Session
H. R. 5439
To end taxpayer support of Federal Government contractors against whom
repeated civil judgments or criminal convictions for certain offenses
have been entered.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
October 11, 2000
Mr. DeFazio introduced the following bill; which was referred to the
Committee on Government Reform
_______________________________________________________________________
A BILL
To end taxpayer support of Federal Government contractors against whom
repeated civil judgments or criminal convictions for certain offenses
have been entered.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Taxpayer Protection and Contractor
Integrity Act''.
SEC. 2. PURPOSE.
The purpose of this Act is to end support by the taxpayers of the
United States of Federal Government contractors that violate the trust
of such taxpayers through repeated civil judgments or criminal
convictions for certain offenses.
SEC. 3. FINDINGS.
Congress finds the following:
(1) Taxpayer dollars should not be used to support
individuals or entities who repeatedly violate laws regarding
Federal contracting and the trust of taxpayers, thus putting
the integrity of future contracts at risk.
(2) The Federal Acquisition Regulation already requires
bidders on Federal contracts to disclose honestly the existence
of indictments, charges, convictions, or civil judgments
against such bidders.
(3) The Federal Acquisition Regulation also requires
contracting officers to make a determination regarding the
responsibility of a potential contractor prior to awarding a
contract to ensure that the potential contractor has a
satisfactory record of integrity and business ethics and a
satisfactory performance record.
(4) Regardless of the number or seriousness of convictions
or civil judgments against a potential contractor, however, the
Federal Acquisition Regulation provides Federal agencies wide
discretion in determining whether to initiate suspension or
debarment procedures. There is currently no maximum number of
convictions above which an entity or individual becomes
ineligible for future contract awards.
SEC. 4. EXPANDED DISCLOSURE REQUIREMENTS FOR BIDDERS ON FEDERAL
CONTRACTS.
A contracting officer for a Federal contract shall require any
potential contractor who has disclosed the existence of an indictment,
charge, conviction, or civil judgment under section 94.409(a) of the
Federal Acquisition Regulation (or any successor provision) to submit
information regarding the number of convictions or civil judgments
entered against the potential contractor, the nature of the offenses,
and whether any fines, penalties, or damages were assessed.
SEC. 5. LIMITATION ON AWARD OF FUTURE CONTRACTS.
(a) In General.--No Federal contract for the procurement of
property or services may be awarded to any individual or entity against
whom a total of three or more convictions or civil judgments have been
entered after the date of the enactment of this Act for any of the
following:
(1) Commission of fraud or a criminal offense in connection
with obtaining, attempting to obtain, or performing a Federal,
State, or local government contract or subcontract.---
(2) Violation of a Federal or State antitrust statute
relating to the submission of offers for Federal contracts.
(3) Commission of embezzlement, theft, forgery, bribery,
falsification or destruction of records, making false
statements, or receiving stolen property in connection with
obtaining, attempting to obtain, or performing a Federal, State
or local government contract or subcontract.
(b) Applicability.--This section shall apply with respect to a
contract awarded on or after the date of the enactment of this Act.
(c) Length of Prohibition; Report.--The prohibition on the award of
a contract under this section shall terminate after a period of three
years beginning on the date that the most recent conviction or civil
judgment has been entered against the potential contractor if--
(1) during such three-year period, the potential contractor
demonstrates a satisfactory record of ethics and integrity by
avoiding additional criminal convictions or civil judgments
regarding the offenses described in subsection (a);
(2) the potential contractor submits to the Director of the
Office of Management and Budget a report on the steps that have
been taken by the potential contractor (such as changes in
company policy, personnel, or procedures) to prevent future
violations; and
(3) the Director certifies that the steps taken are
satisfactory.
(d) Additional Offenses.--If an individual or entity who has been
prohibited from being awarded a Federal contract under subsection (a)
has a conviction or civil judgment for an offense described in
subsection (a) entered against the individual or entity after the
termination of the three-year period described in subsection (c), such
individual or entity shall be prohibited from being awarded a Federal
contract for an additional three years.
SEC. 6. PRESIDENTIAL WAIVER.
(a) Authority.--The President may waive the application of section
5 if the President determines that--
(1) such a waiver is in the interests of national security;
or
(2) the need for the property or services to be acquired
under the contract is of such an unusual and compelling urgency
that the Federal Government would be seriously injured if the
application of such section is not waived.
(b) Waiting Period.--The President may not exercise the waiver
authority of this section until 45 days after the date that the
President submits to Congress in writing a justification for such
waiver.
SEC. 7. PAYMENT OF LEGAL COSTS.
In any case in which the United States brings an action against an
individual or entity for an offense described in section 5(a) and a
verdict of guilty is rendered, the United States shall not be
responsible for payment of legal costs of the individual or entity in
connection with the action.
SEC. 8. CONTRACTOR DEFINED.
In this Act, the term ``contractor'' has the meaning given such
term in section 9.403 of the Federal Acquisition Regulation, as in
effect on the date of the enactment of this Act.
SEC. 9. CONSTRUCTION.
Nothing in this Act shall be construed as superseding the authority
of a Federal contracting officer to make a determination of
nonresponsibility regarding a potential contractor, or to initiate
suspension and debarment procedures against an entity or individual
against whom three or more convictions or civil judgments for the
offenses described in section 5(a) have not been entered.
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