[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3838 Introduced in House (IH)]







109th CONGRESS
  1st Session
                                H. R. 3838

 To establish the Independent Commission to Prevent Fraud and Abuse in 
       the Response to Hurricane Katrina, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 20, 2005

Mr. Waxman (for himself, Ms. Pelosi, Mr. Hoyer, Mr. Obey, Mr. Thompson 
  of Mississippi, Mr. Dingell, Mr. Conyers, Mr. Rangel, Mr. Frank of 
  Massachusetts, Mr. Lantos, Ms. Slaughter, Ms. DeLauro, Mr. Emanuel, 
Mrs. Maloney, Mr. Owens, Mr. Cummings, Ms. Norton, Ms. Watson, and Mr. 
    Lynch) introduced the following bill; which was referred to the 
 Committee on Government Reform, and in addition to the Committees on 
   Transportation and Infrastructure, Energy and Commerce, and Armed 
Services, for a period to be subsequently determined by the Speaker, in 
   each case for consideration of such provisions as fall within the 
                jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
 To establish the Independent Commission to Prevent Fraud and Abuse in 
       the Response to Hurricane Katrina, and for other purposes.

    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 ``Hurricane Katrina Accountability and 
Contracting Reform Act''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
   TITLE I--INDEPENDENT COMMISSION TO PREVENT FRAUD AND ABUSE IN THE 
                     RESPONSE TO HURRICANE KATRINA

Sec. 101. Establishment of Anti-Fraud Commission.
Sec. 102. Duties.
Sec. 103. Composition of Commission.
Sec. 104. Powers of Commission.
Sec. 105. Staff of Commission.
Sec. 106. Compensation and travel expenses.
Sec. 107. Security clearances for Commission members and staff.
Sec. 108. Reports of Commission; termination.
Sec. 109. Termination.
Sec. 110. Funding.
 TITLE II--CLEAN CONTRACTING FOR HURRICANE KATRINA RELIEF AND RECOVERY

              Subtitle A--Transparency and Accountability

Sec. 201. Public availability of contract award information.
Sec. 202. Disclosure of Government contractor overcharges.
Sec. 203. Provision of information to Congress.
        Subtitle B--Prevention of Abusive Contracting Practices

Sec. 211. Prohibition on award of monopoly contracts.
Sec. 212. Competition in multiple award contracts.
Sec. 213. Prohibition on contractor conflicts of interest.
Sec. 214. Closing the revolving door.
Sec. 215. Repeal of $250,000 micropurchase threshold.
                     Subtitle C--General Provisions

Sec. 221. Definition of Hurricane Katrina-related contract.

   TITLE I--INDEPENDENT COMMISSION TO PREVENT FRAUD AND ABUSE IN THE 
                     RESPONSE TO HURRICANE KATRINA

SEC. 101. ESTABLISHMENT OF ANTI-FRAUD COMMISSION.

    There is established in the legislative branch the Independent 
Commission to Prevent Fraud and Abuse in the Response to Hurricane 
Katrina (in this title referred to as the ``Commission'').

SEC. 102. DUTIES.

    (a) Investigation.--The Commission shall conduct a full, complete, 
independent, and impartial investigation of--
            (1) Federal Government contracting relating to Hurricane 
        Katrina recovery, relief, and reconstruction, to prevent waste, 
        fraud, and abuse; and
            (2) allegations of price gouging or profiteering relating 
        to Hurricane Katrina recovery, relief, or reconstruction.
    (b) Specific Requirements.--
            (1) The investigation of the matters described in 
        subsection (a)(1) shall include, at a minimum, the following:
                    (A) Review of how Federal contracts, subcontracts, 
                grants, and cooperative agreements relating to 
                Hurricane Katrina recovery, relief, and reconstruction 
                are awarded, to determine whether the Federal 
                Government has complied with competition requirements 
                and utilized the appropriate contract type.
                    (B) Review of whether the awards of Federal 
                contracts, subcontracts, grants, and cooperative 
                agreements relating to Hurricane Katrina recovery, 
                relief, and reconstruction are based on merit as 
                opposed to relationships between awardees and Federal 
                Government officials.
                    (C) Real-time review of spending under Federal 
                contracts, subcontracts, grants, and cooperative 
                agreements for Hurricane Katrina recovery, relief, and 
                reconstruction to determine whether wasteful spending, 
                poor contract management, or other abuses are 
                occurring.
                    (D) Review of auditing and other oversight 
                procedures to ensure accountability of contractors, 
                subcontractors, and government officials.
                    (E) Review of the inclusion and utilization of 
                small and local businesses through contracts, 
                subcontracts, or otherwise.
                    (F) Review of Federal acquisitions personnel 
                overseeing contracts, subcontracts, grants, and 
                cooperative agreements for Hurricane Katrina recovery, 
                relief, and reconstruction to assess whether there are 
                sufficient Federal acquisitions personnel with 
                appropriate qualifications and training for the 
                hurricane response effort.
                    (G) Review of transactions relating to Hurricane 
                Katrina relief, recovery, and reconstruction that are 
                paid for by government issued credit cards.
            (2) The investigation of the matters described in 
        subsection (a)(2) shall include, at a minimum, a review of 
        activity in the petroleum and natural gas markets in the 
        aftermath of the hurricane and opportunities for market 
        manipulation or price gouging at each point of commerce in 
        bringing petroleum and natural gas to market, including 
        exploration, development, production, refining, distribution, 
        commodities transactions, and retail sales.
    (c) Assessment, Analysis, and Evaluation.--During the course of its 
investigation, the Commission shall assess, analyze, and evaluate 
relevant persons, policies, procedures, contracts, subcontracts, 
grants, cooperative agreements, reports, and events, including, at a 
minimum, the following:
            (1) The Department of Homeland Security, including the 
        Federal Emergency Management Agency.
            (2) The Department of Defense.
            (3) The Army Corps of Engineers.
            (4) Other Federal agencies that award or oversee contracts, 
        subcontracts, grants, or cooperative agreements for Hurricane 
        Katrina recovery, relief, or reconstruction.
            (5) The approval process for contracts, subcontracts, 
        grants, and cooperative agreements in the Federal agencies 
        listed in paragraphs (1) through (4).
            (6) Communications between private contractors, their 
        representatives, and Federal Government officials concerning 
        potential or existing contracts or subcontracts for Hurricane 
        Katrina relief, recovery, or reconstruction.
            (7) Actual cost figures for transactions relating to 
        contracts, subcontracts, grants, and cooperative agreements or 
        paid for by government issued credit cards, for Hurricane 
        Katrina relief, recovery, or reconstruction.
            (8) Pricing policies of individual companies in the 
        petroleum and natural gas industries, actual cost figures for 
        fuel and natural gas transactions, and information regarding 
        decisions by companies to reduce or expand refining capacity.

SEC. 103. COMPOSITION OF COMMISSION.

    (a) Members.--The Commission shall be composed of 10 members, of 
whom--
            (1) 1 member shall be appointed by the President;
            (2) 1 member shall be jointly appointed by the minority 
        leader of the Senate and the minority leader of the House of 
        Representatives;
            (3) 2 members shall be appointed by the majority leader of 
        the Senate;
            (4) 2 members shall be appointed by the Speaker of the 
        House of Representatives;
            (5) 2 members shall be appointed by the minority leader of 
        the Senate; and
            (6) 2 members shall be appointed by the minority leader of 
        the House of Representatives.
    (b) Qualifications; Initial Meeting.--
            (1) Nongovernmental appointees.--An individual appointed to 
        the Commission may not be an officer or employee of the Federal 
        Government or any State or local government.
            (2) Other qualifications.--Individuals appointed to the 
        Commission should be prominent United States citizens, with 
        national recognition and significant depth of experience in 
        such professions as governmental service, public 
        administration, government contracting, economics, emergency 
        response, and energy policy.
            (3) Deadline for appointment.--All members of the 
        Commission shall be appointed within 21 days following the date 
        of the enactment of this Act.
            (4) Chairman and vice chairman.--The chairman and vice 
        chairman of the Commission shall be elected by a majority vote 
        of the members.
            (5) Meetings.--The Commission shall meet and begin the 
        operations of the Commission as soon as practicable. After its 
        initial meeting, the Commission shall meet upon the call of the 
        chairman or a majority of its members.
    (c) Quorum; Vacancies.--Six members of the Commission shall 
constitute a quorum. Any vacancy in the Commission shall not affect its 
powers, but shall be filled in the same manner in which the original 
appointment was made.
    (d) Conflicts of Interest.--
            (1) Financial disclosure.--Each member appointed to the 
        Commission shall submit a financial disclosure report pursuant 
        to the Ethics in Government Act of 1978, notwithstanding the 
        minimum required rate of compensation or time period employed.
            (2) Independence from subjects of investigations.--Each 
        member appointed to the Commission shall be independent of any 
        agency, individual, or institution that may be the subject of 
        investigation by the Commission.

SEC. 104. POWERS OF COMMISSION.

    (a) In General.--
            (1) Hearings and evidence.--The Commission or, on the 
        authority of the Commission, any subcommittee or member 
        thereof, may, for the purpose of carrying out this title--
                    (A) hold such hearings and sit and act at such 
                times and places, take such testimony, receive such 
                evidence, administer such oaths; and
                    (B) subject to paragraph (2)(A), require, by 
                subpoena or otherwise, the attendance and testimony of 
                such witnesses and the production of such books, 
                records, correspondence, memoranda, papers, and 
                documents,
        as the Commission or such designated subcommittee or designated 
        member may determine advisable.
            (2) Subpoenas.--
                    (A) Issuance.--
                            (i) In general.--A subpoena may be issued 
                        under this subsection only--
                                    (I) by the agreement of the 
                                chairman and the vice chairman; or
                                    (II) by the affirmative vote of 6 
                                members of the Commission.
                            (ii) Signature.--Subject to clause (i), 
                        subpoenas issued under this subsection may be 
                        issued under the signature of the chairman or 
                        any member designated by a majority of the 
                        Commission, and may be served by any person 
                        designated by the chairman or by a member 
                        designated by a majority of the Commission.
                    (B) Enforcement.--
                            (i) In general.--In the case of contumacy 
                        or failure to obey a subpoena issued under this 
                        subsection, the United States district court 
                        for the judicial district in which the 
                        subpoenaed person resides, is served, or may be 
                        found, or where the subpoena is returnable, may 
                        issue an order requiring such person to appear 
                        at any designated place to testify or to 
                        produce documentary or other evidence. Any 
                        failure to obey the order of the court may be 
                        punished by the court as a contempt of that 
                        court.
                            (ii) Additional enforcement.--In the case 
                        of any failure of any witness to comply with 
                        any subpoena or to testify when summoned under 
                        authority of this subsection, the Commission 
                        may, by majority vote, certify a statement of 
                        fact constituting such failure to the 
                        appropriate United States attorney, who may 
                        bring the matter before the grand jury for its 
                        action, under the same statutory authority and 
                        procedures as if the United States attorney had 
                        received a certification under sections 102 
                        through 104 of the Revised Statutes of the 
                        United States (2 U.S.C. 192 through 194).
            (3) Scope.--In carrying out its duties under this Act, the 
        Commission may examine the actions and representations of the 
        current Administration as well as prior Administrations.
    (b) Contracting.--The Commission may, to such extent and in such 
amounts as are provided in appropriation Acts, enter into contracts to 
enable the Commission to discharge its duties of this Act.
    (c) Information From Federal Agencies.--
            (1) In general.--The Commission may secure directly from 
        any executive department, bureau, agency, board, commission, 
        office, independent establishment, or instrumentality of the 
        Federal Government, information, suggestions, estimates, and 
        statistics for the purposes of this Act. Each department, 
        bureau, agency, board, commission, office, independent 
        establishment, or instrumentality shall furnish such 
        information, suggestions, estimates, and statistics directly to 
        the Commission, upon request made by the chairman, the chairman 
        of any subcommittee created by a majority of the Commission, or 
        any member designated by a majority of the Commission.
            (2) Receipt, handling, storage, and dissemination.--
        Information shall be received, handled, stored, and 
        disseminated by members of the Commission and its staff 
        consistent with all applicable statutes, regulations, and 
        Executive orders.
    (d) Assistance From Federal Agencies.--
            (1) General services administration.--The Administrator of 
        General Services shall provide to the Commission on a 
        reimbursable basis administrative support and other services 
        for the performance of the Commission's functions.
            (2) Other departments and agencies.--In addition to the 
        assistance prescribed in paragraph (1), departments and 
        agencies of the United States may provide to the Commission 
        such services, funds, facilities, staff, and other support 
        services as they may determine advisable and as may be 
        authorized by law.
    (e) Gifts.--The Commission may accept, use, and dispose of gifts or 
donations of services or property.
    (f) Postal Services.--The Commission may use the United States 
mails in the same manner and under the same conditions as departments 
and agencies of the United States.

SEC. 105. STAFF OF COMMISSION.

    (a) In General.--
            (1) Appointment and compensation.--The chairman and the 
        vice chairman jointly, in accordance with rules agreed upon by 
        the Commission, may appoint and fix the compensation of a staff 
        director and such other personnel as may be necessary to enable 
        the Commission to carry out its functions, without regard to 
        the provisions of title 5, United States Code, governing 
        appointments in the competitive service, and without regard to 
        the provisions of chapter 51 and subchapter III of chapter 53 
        of such title relating to classification and General Schedule 
        pay rates, except that no rate of pay fixed under this 
        subsection may exceed the equivalent of that payable for a 
        position at level V of the Executive Schedule under section 
        5316 of title 5, United States Code.
            (2) Personnel as federal employees.--
                    (A) In general.--The staff director and any 
                personnel of the Commission who are employees shall be 
                employees under section 2105 of title 5, United States 
                Code, for purposes of chapters 63, 81, 83, 84, 85, 87, 
                89, and 90 of that title.
                    (B) Members of commission.--Subparagraph (A) shall 
                not be construed to apply to members of the Commission.
    (b) Detailees.--Any Federal Government employee may be detailed to 
the Commission without reimbursement from the Commission, and such 
detailee shall retain the rights, status, and privileges of his or her 
regular employment without interruption.
    (c) Consultant Services.--The Commission is authorized to procure 
the services of experts and consultants in accordance with section 3109 
of title 5, United States Code, but at rates not to exceed the daily 
rate paid a person occupying a position at level IV of the Executive 
Schedule under section 5315 of title 5, United States Code.

SEC. 106. COMPENSATION AND TRAVEL EXPENSES.

    (a) Compensation.--Each member of the Commission may be compensated 
at a rate not to exceed the daily equivalent of the annual rate of 
basic pay in effect for a position at level IV of the Executive 
Schedule under section 5315 of title 5, United States Code, for each 
day during which that member is engaged in the actual performance of 
the duties of the Commission.
    (b) Travel Expenses.--While away from their homes or regular places 
of business in the performance of services for the Commission, members 
of the Commission shall be allowed travel expenses, including per diem 
in lieu of subsistence, in the same manner as persons employed 
intermittently in the Government service are allowed expenses under 
section 5703(b) of title 5, United States Code.

SEC. 107. SECURITY CLEARANCES FOR COMMISSION MEMBERS AND STAFF.

    (a) In General.--Subject to subsection (b), the appropriate Federal 
agencies or departments shall cooperate with the Commission in 
expeditiously providing to the Commission members and staff appropriate 
security clearances to the extent possible pursuant to existing 
procedures and requirements.
    (b) Exception.--No person shall be provided with access to 
classified information under this title without the appropriate 
required security clearance access.

SEC. 108. REPORTS OF COMMISSION; TERMINATION.

    (a) Evidence of Abuses.--The Commission shall report to Congress 
and to the President any evidence of waste, fraud, market manipulation, 
or other abuses it finds, in a timely and ongoing manner.
    (b) Interim Reports.--The Commission may submit to Congress and the 
President interim reports containing such findings, conclusions, and 
recommendations for corrective measures as have been agreed to by a 
majority of Commission members.
    (c) Final Report.--Prior to the termination of the Commission, the 
Commission shall submit to Congress and the President a final report 
containing such findings, conclusions, and recommendations for 
corrective measures as have been agreed to by a majority of Commission 
members.

SEC. 109. TERMINATION.

    The Commission, and all the authorities of this Act, shall 
terminate 10 months after 80 percent of the funds appropriated by the 
109th Congress for Hurricane Katrina recovery, relief, and 
reconstruction have been expended.

SEC. 110. FUNDING.

    (a) Authorization of Appropriations.--There is authorized to be 
appropriated funds not to exceed $5,000,000 for purposes of the 
activities of the Commission under this Act.
    (b) Duration of Availability.--Amounts made available to the 
Commission under subsection (a) shall remain available until the 
termination of the Commission.

 TITLE II--CLEAN CONTRACTING FOR HURRICANE KATRINA RELIEF AND RECOVERY

              Subtitle A--Transparency and Accountability

SEC. 201. PUBLIC AVAILABILITY OF CONTRACT AWARD INFORMATION.

    (a) Requirement.--Not later than 14 days after the award of a 
Hurricane Katrina-related contract by an executive agency, the head of 
the executive agency shall make publicly available, including by 
posting on the Internet in a searchable database, the following 
information with respect to the contract:
            (1) The name and address of the contractor.
            (2) The date of award of the contract.
            (3) The number of offers received in response to the 
        solicitation.
            (4) The total amount of the contract.
            (5) The contract type.
            (6) The items, quantities, and any stated unit price of 
        items or services to be procured under the contract.
            (7) With respect to a procurement carried out using 
        procedures other than competitive procedures--
                    (A) the authority for using such procedures under 
                section 303(c) of title III of the Federal Property and 
                Administrative Services Act of 1949 (41 U.S.C.253(c)) 
                or section 2304(c) of title 10, United States Code; and
                    (B) the number of sources from which bids or 
                proposals were solicited.
            (8) The general reasons for selecting the contractor.
    (b) Definition.--In this section, the term ``executive agency'' has 
the meaning provided in section 4 of the Office of Federal Procurement 
Policy Act (41 U.S.C. 403).
    (c) Effective Date.--This section shall apply to contracts entered 
into more than 90 days after the date of the enactment of this Act.

SEC. 202. DISCLOSURE OF GOVERNMENT CONTRACTOR OVERCHARGES.

    (a) Quarterly Report to Congress.--The head of each Federal agency 
or department shall submit to the chairman and ranking member of each 
committee described in subsection (b) on a quarterly basis a report 
that includes the following:
            (1) A list of audits or other reports issued during the 
        applicable quarter that describe contractor costs in excess of 
        $1,000,000 that have been identified as unjustified, 
        unsupported, questioned, or unreasonable under any Hurricane 
        Katrina-related contract, task or delivery order under a 
        Hurricane Katrina-related task or delivery order contract, or 
        subcontract under a Hurricane Katrina-related contract.
            (2) The specific amounts of costs identified as 
        unjustified, unsupported, questioned, or unreasonable and the 
        percentage of their total value of the contract, task or 
        delivery order, or subcontract.
            (3) A list of audits or other reports issued during the 
        applicable quarter that identify significant or substantial 
        deficiencies in any business system of any contractor under any 
        such contract, task or delivery order, or subcontract.
    (b) Committees.--The report described in subsection (a) shall be 
submitted to the Committee on Government Reform of the House of 
Representatives, the Committee on Homeland Security and Governmental 
Affairs of the Senate, and other committees of jurisdiction.

SEC. 203. PROVISION OF INFORMATION TO CONGRESS.

    (a) Provision of Information to Congress.--Upon request of the 
chairman or ranking member of a committee described in subsection (b), 
the head of an executive agency shall provide, with respect to any 
Hurricane Katrina-related contract or task or delivery order under a 
Hurricane Katrina-related task or delivery order contract entered into 
by the agency, within 14 days after receipt of the request, unredacted 
copies of any documents relating to the contract or task or delivery 
order, including any documents required to be maintained in the 
contracting office contract file, the contract administration office 
contract file, and the paying office contract file pursuant to subpart 
4.8 of the Federal Acquisition Regulation, including--
            (1) copies of the contract and all modifications;
            (2) orders issued under the contract;
            (3) justifications and approvals;
            (4) any government estimate of contract price;
            (5) source selection documentation;
            (6) cost or price analysis;
            (7) audit reports;
            (8) justification for type of contract;
            (9) authority for deviations from regulations, statutory 
        requirements, or other restrictions;
            (10) bills, invoices, vouchers, and supporting documents; 
        and
            (11) records of payments or receipts.
    (b) Committees.--The committees referred to in subsection (a) are 
the following:
            (1) The Committee on Homeland Security and Governmental 
        Affairs of the Senate and the Committee on Government Reform of 
        the House of Representatives.
            (2) The Committees on Appropriations of the Senate and 
        House of Representatives.
            (3) Each committee that the head of the executive agency 
        determines has legislative jurisdiction for the operations of 
        the department or agency to which the contract, task or 
        delivery order, or other information referred to in subsection 
        (a) relates.

        Subtitle B--Prevention of Abusive Contracting Practices

SEC. 211. PROHIBITION ON AWARD OF MONOPOLY CONTRACTS.

    (a) Prohibition.--The Federal Government may not enter into a 
Hurricane Katrina-related contract if the contract is a monopoly 
contract.
    (b) Monopoly Contract.--In this section, the term ``monopoly 
contract'' means a task or delivery order contract (as defined in 
section 303K of the Federal Property and Administrative Services Act of 
1949 (41 U.S.C. 253k) or section 2304d of title 10, United States Code) 
that is a Hurricane Katrina-related contract in an amount estimated to 
exceed $10,000,000 (including all options) awarded to a single 
contractor.
    (c) Exception.--
            (1) In general.--Notwithstanding subsection (a), a monopoly 
        contract may be awarded if--
                    (A) the head of the agency--
                            (i) makes a determination described in 
                        paragraph (2); and
                            (ii) justifies the determination in writing 
                        and certifies the accuracy and completeness of 
                        the justification;
                    (B) the justification is approved as described in 
                303(f)(1)(B) of the Federal Property and Administrative 
                Services Act of 1949 (41 U.S.C. 253(f)(1)(B)) or 
                section 2304(f)(1)(B) of title 10, United States Code; 
                and
                    (C) a statement describing the determination, 
                justification, and approval are submitted to the 
                chairman and ranking member of the committees described 
                in paragraph (3).
            (2) A determination described in this paragraph is a 
        determination in writing that--
                    (A) for one of the reasons set forth in section 
                303(c) of the Federal Property and Administrative 
                Services Act of 1949 (41 U.S.C. 253(c)) or section 
                2304(c) of title 10, United States Code, a single task 
                or delivery order contract is in the best interest of 
                the Federal Government; or
                    (B) the task orders expected under the contract are 
                so integrally related that only a single contractor can 
                reasonably perform the work.
            (3) The committees described in this paragraph are the 
        Committee on Government Reform of the House of Representatives, 
        the Committee on Homeland Security and Governmental Affairs of 
        the Senate, the Committees on Appropriations of the House of 
        Representatives and the Senate, and other committees of 
        jurisdiction.
            (4) In the case of a determination described in paragraph 
        (2)(A) that is for the reason set forth in section 303(c)(2) of 
        the Federal Property and Administrative Services Act of 1949 or 
        section 2304(c)(2) of title 10, United States Code, the 
        justification and approval required under paragraph (1) may be 
        made after a contract is awarded, but not later than 30 days 
        after the date of the award.
    (d) Multiple Awards.--This section applies to a task order contract 
that is a Hurricane Katrina-related contract for the procurement of 
advisory and assistance services under section 303I of the Federal 
Property and Administrative Services Act of 1949 (41 U.S.C. 253i) or 
section 2304a of title 10, United States Code, notwithstanding section 
303I(e) of such Act or section 2304a(d) of such title, respectively.

SEC. 212. COMPETITION IN MULTIPLE AWARD CONTRACTS.

    (a) Competition Required.--The Federal Government shall use 
competition in the purchase of goods and services pursuant to any 
Hurricane Katrina-related contract that is a multiple award contract in 
accordance with this section.
    (b) Specific Requirements.--Each individual purchase of goods or 
services by an executive agency or military department in excess of 
$100,000 that is made under a Hurricane Katrina-related contract that 
is a multiple award contract shall be made on a competitive basis 
unless a contracting officer of the executive agency or military 
department concerned--
            (1) waives the requirement on the basis of a determination 
        that--
                    (A)(i) in the case of a contract entered into by an 
                executive agency, one of the circumstances described in 
                paragraphs (1) through (4) of section 303J(b) of the 
                Federal Property and Administrative Services Act of 
                1949 (41 U.S.C. 253j(b)) applies to such individual 
                purchase; or
                    (ii) in the case of a contract entered into by a 
                military department, one of the circumstances described 
                in paragraphs (1) through (4) of section 2304c(b) of 
                title 10, United States Code, applies to such 
                individual purchase; or
                    (B) a statute expressly authorizes or requires that 
                the purchase be made from a specified source; and
            (2) justifies the determination in writing.
    (c) Definitions.--In this section:
            (1) The term ``individual purchase'' means a task order, 
        delivery order, or other purchase.
            (2) The term ``multiple award contract'' means--
                    (A) a contract that is entered into by the 
                Administrator of General Services under the multiple 
                award schedule program referred to in section 309(b)(3) 
                of the Federal Property and Administrative Services Act 
                of 1949 (41 U.S.C. 259(b)(3)) or section 2302(2)(C) of 
                title 10, United States Code;
                    (B) a multiple award task order contract that is 
                entered into under the authority of sections 2304a 
                through 2304d of title 10, United States Code, or 
                sections 303H through 303K of the Federal Property and 
                Administrative Services Act of 1949 (41 U.S.C. 253h 
                through 253k); and
                    (C) any other indefinite delivery, indefinite 
                quantity contract that is entered into by the head of 
                an executive agency with two or more sources pursuant 
                to the same solicitation.

SEC. 213. PROHIBITION ON CONTRACTOR CONFLICTS OF INTEREST.

    (a) Prohibition.--An agency may not enter into a Hurricane Katrina-
related contract for the performance of a function relating to contract 
oversight with any contractor with a conflict of interest.
    (b) Definitions.--In this section:
            (1) The term ``function relating to contract oversight'' 
        includes the following specific functions:
                    (A) Evaluation of a contractor's performance.
                    (B) Evaluation of contract proposals.
                    (C) Development of statements of work.
                    (D) Services in support of acquisition planning.
                    (E) Contract management.
            (2) The term ``conflict of interest'' includes cases in 
        which the contractor performing the function relating to 
        contract oversight, or any related entity--
                    (A) is performing all or some of the work to be 
                overseen;
                    (B) has a separate ongoing business relationship, 
                such as a joint venture or contract, with any of the 
                contractors to be overseen;
                    (C) would be placed in a position to affect the 
                value or performance of work it or any related entity 
                is doing under any other Government contract;
                    (D) has a reverse role with the contractor to be 
                overseen under one or more separate Government 
                contracts; and
                    (E) has some other relationship with the contractor 
                to be overseen that could reasonably appear to bias the 
                contractor's judgment.
            (3) The term ``related entity'', with respect to a 
        contractor, means any subsidiary, parent, affiliate, joint 
        venture, or other entity related to the contractor.
    (c) Contracts Relating to Inherently Governmental Functions.--An 
agency may not enter into a Hurricane Katrina-related contract for the 
performance of inherently governmental functions for contract oversight 
(as described in subpart 7.5 of part 7 of the Federal Acquisition 
Regulation).

SEC. 214. CLOSING THE REVOLVING DOOR.

    (a) Strengthening the Prohibition on Former Official's Acceptance 
of Compensation From Contractor.--
            (1) Paragraph (1) of section 27(d) of the Office of Federal 
        Procurement Policy Act (41 U.S.C. 423(d)(1)) is amended--
                    (A) in subparagraph (C), by striking ``personally 
                made for the Federal agency--'' and inserting 
                ``participated personally and substantially in--''; and
                    (B) in the text preceding subparagraph (A)--
                            (i) by striking ``one year'' and inserting 
                        ``two years''; and
                            (ii) by striking ``or consultant'' and 
                        inserting ``consultant, lawyer, or lobbyist''.
            (2) Paragraph (2) of section 27(d) of such Act (41 U.S.C. 
        423(d)(2)) is amended to read as follows:
    ``(2) For purposes of paragraph (1), the term `contractor' includes 
any division, affiliate, subsidiary, parent, joint venture, or other 
related entity of the contractor.''.
    (b) Prevention of Former Employees of Private Contractors From 
Awarding Government Contracts to Their Former Employers.--Section 27 of 
such Act (41 U.S.C. 423) is amended by adding at the end the following 
new subsection:
    ``(i) Prohibition on Involvement by Certain Former Contractor 
Employees in Procurements.--A former employee of a nongovernment entity 
who becomes an employee of the Federal Government shall not be 
personally and substantially involved with any Federal agency 
procurement involving the employee's former nongovernment entity 
employer, including any division, affiliate, subsidiary, parent, joint 
venture, or other related entity of the former employer, for a period 
of 5 years beginning on the date the employee leaves the employ of the 
nongovernment entity. In this subsection the term `nongovernment 
entity' means any entity that is not part of the Federal Government or 
any State or local government.''.
    (c) Requirement for Federal Procurement Officers to Disclose Job 
Offers Made to Relatives.--Section 27(c)(1) of such Act (41 U.S.C. 
423(c)(1)) is amended by inserting after ``that official'' the 
following: ``or for a relative of that official (as defined in section 
3110 of title 5, United States Code),''.
    (d) Revised Penalties.--Paragraph (1) of section 27(e) of such Act 
(41 U.S.C. (e)(1)) is amended to read as follows:
            ``(1) Criminal penalties.--Whoever engages in conduct 
        constituting a violation of--
                    ``(A) subsection (a) or (b) for the purpose of 
                either--
                            ``(i) exchanging the information covered by 
                        such subsection for anything of value, or
                            ``(ii) obtaining or giving anyone a 
                        competitive advantage in the award of a Federal 
                        agency procurement contract; or
                    ``(B) subsection (c) or (d);
        shall be imprisoned for not more than 5 years or fined as 
        provided under title 18, United States Code, or both.''.

SEC. 215. REPEAL OF $250,000 MICROPURCHASE THRESHOLD.

    Section 101 of the Second Emergency Supplemental Appropriations Act 
to Meet Immediate Needs Arising From the Consequences of Hurricane 
Katrina, 2005 (Public Law 109-62) is amended--
            (1) by striking paragraph (2); and
            (2)(A) by striking ``operations--
            ``(1) the emergency'';
            (B) by inserting in lieu of the matter struck by 
        subparagraph (A) ``operations, the emergency''; and
            (C) by striking ``; and'' and inserting a period.

                     Subtitle C--General Provisions

SEC. 221. DEFINITION OF HURRICANE KATRINA-RELATED CONTRACT.

    In this title, the term ``Hurricane Katrina-related contract'' or 
``Hurricane Katrina-related task or delivery order contract'' means a 
contract for the procurement of property or services to be used in 
support of Hurricane Katrina rescue, relief, recovery, or 
reconstruction operations. The term includes any subcontracts under 
such a contract.
                                 <all>