[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5439 Introduced in House (IH)]







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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