[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6069 Introduced in House (IH)]








109th CONGRESS
  2d Session
                                H. R. 6069

       To reform acquisition practices of the Federal Government.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 13, 2006

  Mr. Waxman (for himself, Mr. Cardoza, Mr. Obey, Ms. Norton, and Mr. 
   Tierney) introduced the following bill; which was referred to the 
 Committee on Government Reform, and in addition to the Committees on 
     Armed Services, Rules, and Small Business, 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 reform acquisition practices of the Federal Government.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Clean Contracting 
Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title and table of contents.
        TITLE I--PROMOTING COMPETITION IN THE AWARD OF CONTRACTS

Sec. 101. Limitation on length of noncompetitive contracts.
Sec. 102. Competition in multiple award contracts.
Sec. 103. Minimizing sole-source contracts.
Sec. 104. Public disclosure of justification and approval documents and 
                            other determinations for noncompetitive 
                            contracts.
          TITLE II--LIMITING THE USE OF ABUSE-PRONE CONTRACTS

Sec. 201. Prohibition on award of monopoly contracts.
Sec. 202. Limitations on tiering of subcontractors.
Sec. 203. Minimizing cost-reimbursement type contracts.
       TITLE III--PREVENTING THE ABUSE OF CONTRACT FLEXIBILITIES

Sec. 301. Preventing abuse of commercial item authority.
Sec. 302. Preventing abuse of other transaction authority.
Sec. 303. Preventing abuse of interagency contracts.
Sec. 304. Preventing abuse of Government credit cards.
Sec. 305. Repeal of Alaska Native Corporation loophole.
                TITLE IV--INCREASING CONTRACT OVERSIGHT

Sec. 401. Funding contract oversight.
Sec. 402. Prohibition on contractor conflicts of interest.
Sec. 403. Disclosure of Government contractor overcharges.
Sec. 404. Public availability of Federal contract awards.
Sec. 405. Provision of information to Congress.
Sec. 406. Oversight by the Government Reform Committee.
Sec. 407. Nonpartisan Chief Acquisition Officers.
Sec. 408. Improving the Federal Procurement Data System.
Sec. 409. Enforcement through bid protest.
               TITLE V--PREVENTING UNJUSTIFIED AWARD FEES

Sec. 501. Encouraging excellent contract performance.
             TITLE VI--DETERRING CORRUPTION IN CONTRACTING

Sec. 601. Closing the revolving door.
Sec. 602. Requiring contractor integrity and business ethics.
Sec. 603. Enhancement of whistleblower protections.

        TITLE I--PROMOTING COMPETITION IN THE AWARD OF CONTRACTS

SEC. 101. LIMITATION ON LENGTH OF NONCOMPETITIVE CONTRACTS.

    (a) Revision of FAR.--Not later than one year after the date of the 
enactment of this Act, the Federal Acquisition Regulation shall be 
revised to restrict the contract period of any contract described in 
subsection (c) to the minimum contract period necessary--
            (1) to meet the urgent and compelling requirements of the 
        work to be performed under the contract; and
            (2) to enter into another contract for the required goods 
        or services through the use of competitive procedures.
    (b) Contract Period.--The regulations promulgated under subsection 
(a) shall require the contract period to not exceed 240 days, unless 
the head of the executive agency concerned determines that exceptional 
circumstances apply.
    (c) Covered Contracts.--This section applies to any contract in an 
amount greater than the simplified acquisition threshold entered into 
by an executive agency using procedures other than competitive 
procedures pursuant to the exception provided in section 303(c)(2) of 
the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 
253(c)(2)) or section 2304(c)(2) of title 10, United States Code.
    (d) Definitions.--In this section:
            (1) The term ``executive agency'' has the meaning provided 
        in section 4(1) of the Office of Federal Procurement Policy Act 
        (41 U.S.C. 403(1)).
            (2) The term ``head of the executive agency'' means the 
        head of an executive agency except that, in the case of a 
        military department, the term means the Secretary of Defense.

SEC. 102. COMPETITION IN MULTIPLE AWARD CONTRACTS.

    (a) Expansion of Applicability to All Government Contracts.--Title 
III of the Federal Property and Administrative Services Act of 1949 (41 
U.S.C. 251 et seq.) is amended by inserting after section 303M the 
following new section:

``SEC. 303N. COMPETITION IN MULTIPLE AWARD CONTRACTS.

    ``(a) Regulations Required.--Not later than 180 days after the date 
of the enactment of this section, the Federal Acquisition Regulation 
shall be revised to require competition in the purchase of goods and 
services by each executive agency pursuant to multiple award contracts.
    ``(b) Content of Regulations.--(1) The regulations required by 
subsection (a) shall provide, at a minimum, that each individual 
purchase of goods or services in excess of $100,000 that is made under 
a multiple award contract shall be made on a competitive basis unless a 
contracting officer of the executive agency--
            ``(A) waives the requirement on the basis of a 
        determination that--
                    ``(i) one of the circumstances described in 
                paragraphs (1) through (4) of section 303J(b) applies 
                to such individual purchase; or
                    ``(ii) a statute expressly authorizes or requires 
                that the purchase be made from a specified source; and
            ``(B) justifies the determination in writing.
    ``(2) For purposes of this subsection, an individual purchase of 
goods or services is made on a competitive basis only if it is made 
pursuant to procedures that--
            ``(A) require fair notice of the intent to make that 
        purchase (including a description of the work to be performed 
        and the basis on which the selection will be made) to be 
        provided to all contractors offering such goods or services 
        under the multiple award contract; and
            ``(B) afford all contractors responding to the notice a 
        fair opportunity to make an offer and have that offer fairly 
        considered by the official making the purchase.
    ``(3) Notwithstanding paragraph (2), notice may be provided to 
fewer than all contractors offering such goods or services under a 
multiple award contract described in subsection (c)(2)(A) if notice is 
provided to as many contractors as practicable.
    ``(4) A purchase may not be made pursuant to a notice that is 
provided to fewer than all contractors under paragraph (3) unless--
            ``(A) offers were received from at least three qualified 
        contractors; or
            ``(B) a contracting officer of the executive agency 
        determines in writing that no additional qualified contractors 
        were able to be identified despite reasonable efforts to do so.
    ``(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);
                    ``(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; 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.
    ``(d) Applicability.--The revisions to the Federal Acquisition 
Regulation pursuant to subsection (a) shall take effect not later than 
180 days after the date of the enactment of this section and shall 
apply to all individual purchases of goods or services that are made 
under multiple award contracts on or after the effective date, without 
regard to whether the multiple award contracts were entered into 
before, on, or after such effective date.''.
    (b) Conforming Amendments to Defense Contract Provision.--Section 
803 of the National Defense Authorization Act for Fiscal Year 2002 
(Public Law 107-107; 10 U.S.C. 2304 note) is amended as follows:
            (1) The section heading is amended by inserting ``goods 
        or'' before ``services''.
            (2) Subsection (a) is amended by inserting ``goods and'' 
        before ``services''.
            (3) The following provisions are amended by inserting 
        ``goods or'' before ``services'' each place it appears:
                    (A) Paragraphs (1), (2), and (3) of subsection (b).
                    (B) Subsection (d).
            (4) Such section is amended by adding at the end the 
        following new subsection:
    ``(e) Applicability to Goods.--The Secretary shall revise the 
regulations promulgated pursuant to subsection (a) to cover purchases 
of goods by the Department of Defense pursuant to multiple award 
contracts. The revised regulations shall take effect in final form not 
later than 180 days after the date of the enactment of this subsection 
and shall apply to all individual purchases of goods that are made 
under multiple award contracts on or after the effective date, without 
regard to whether the multiple award contracts were entered into 
before, on, or after such effective date.''.

SEC. 103. MINIMIZING SOLE-SOURCE CONTRACTS.

    (a) Plans Required.--The head of each executive agency covered by 
title III of the Federal Property and Administrative Services Act of 
1949 (41 U.S.C. 251 et seq.) and the head of each agency covered by 
chapter 137 of title 10, United States Code, shall develop and 
implement a plan to minimize the use of contracts entered into using 
procedures other than competitive procedures by the agency concerned. 
The plan shall contain measurable goals and shall be completed and 
submitted to the Committee on Government Reform of the House of 
Representatives and the Committee on Homeland Security and Governmental 
Affairs of the Senate, with a copy provided to the Comptroller General, 
not later than 1 year after the date of the enactment of this Act.
    (b) Comptroller General Review.--The Comptroller General shall 
review the plans provided under subsection (a) and submit a report to 
Congress on the plans not later than 18 months after the date of the 
enactment of this Act.

SEC. 104. PUBLIC DISCLOSURE OF JUSTIFICATION AND APPROVAL DOCUMENTS AND 
              OTHER DETERMINATIONS FOR NONCOMPETITIVE CONTRACTS.

    (a) Civilian Agency Contracts.--Section 303 of the Federal Property 
and Administrative Services Act of 1949 (41 U.S.C. 253) is amended by 
adding at the end the following new subsection:
    ``(j)(1) In the case of a procurement permitted by subsection (c), 
the head of an executive agency shall make publically available, within 
14 days after the award of the contract, the documents containing the 
following:
                    ``(A) The justification and approval required by 
                subsection (f)(1) with respect to the procurement.
                    ``(B) Any determination with respect to the 
                procurement that exceptional circumstances apply, under 
                section 101(b) of the Clean Contracting Act.
                    ``(C) Any determination with respect to the 
                procurement under section 303H(d)(3)(C) (relating to a 
                monopoly contract).
                    ``(D) Any determination with respect to the 
                procurement that exceptional circumstances apply, under 
                section 202(b) of the Clean Contracting Act.
    ``(2) The documents shall be made available on the website of the 
agency and through the Federal Procurement Data System.
    ``(3) Nothing in this subsection shall be construed to supersede or 
otherwise affect section 552 of title 5.''.
    (b) Defense Agency Contracts.--Section 2304 of title 10, United 
States Code, is amended by adding at the end the following new 
subsection:
    ``(l)(1) In the case of a procurement permitted by subsection (c), 
the head of an agency shall make publically available, within 14 days 
after the award of the contract, the documents containing the 
following:
                    ``(A) The justification and approval required by 
                subsection (f)(1) with respect to the procurement.
                    ``(B) Any determination with respect to the 
                procurement that exceptional circumstances apply, under 
                section 101(b) of the Clean Contracting Act.
                    ``(C) Any determination with respect to the 
                procurement under section 2304a(d)(4)(C) of this title 
                (relating to a monopoly contract).
                    ``(D) Any determination with respect to the 
                procurement that exceptional circumstances apply, under 
                section 202(b) of the Clean Contracting Act.
    ``(2) The documents shall be made available on the website of the 
agency and through the Federal Procurement Data System.
    ``(3) Nothing in this subsection shall be construed to supersede or 
otherwise affect section 552 of title 5, United States Code.''.

          TITLE II--LIMITING THE USE OF ABUSE-PRONE CONTRACTS

SEC. 201. PROHIBITION ON AWARD OF MONOPOLY CONTRACTS.

    (a) Civilian Agency Contracts.--
            (1) Paragraph (3) of section 303H(d) of title III of the 
        Federal Property and Administrative Services Act of 1949 (41 
        U.S.C. 253h(d)) is amended to read as follows:
            ``(3)(A) The regulations implementing this subsection shall 
        prohibit the award of monopoly contracts.
            ``(B) In this subsection, the term `monopoly contract' 
        means a task or delivery order contract in an amount estimated 
        to exceed $10,000,000 (including all options) awarded to a 
        single contractor.
            ``(C) Notwithstanding subparagraph (A), a monopoly contract 
        may be awarded if the head of the agency determines in writing 
        that--
                    ``(i) for one of the reasons set forth in section 
                303(c), a single task or delivery order contract is in 
                the best interest of the Federal Government; or
                    ``(ii) the task orders expected under the contract 
                are so integrally related that only a single contractor 
                can reasonably perform the work.''.
            (2) Section 303H(d)(1) of such Act is amended by striking 
        ``The head'' and inserting ``Subject to paragraph (3), the 
        head''.
            (3) Subsection (e) of section 303I of such Act (41 United 
        States Code 253i) is amended to read as follows:
    ``(e) Multiple Awards.--Section 303H(d) applies to a task or 
delivery order contract for the procurement of advisory and assistance 
services under this section.''.
    (b) Defense Contracts.--
            (1) Section 2304a(d) of title 10, United States Code, is 
        amended by adding at the end the following new paragraph:
            ``(4)(A) The regulations implementing this subsection shall 
        prohibit the award of monopoly contracts.
            ``(B) In this subsection, the term `monopoly contract' 
        means a task or delivery order contract in an amount estimated 
        to exceed 10,000,000 (including all options) awarded to a 
        single contractor.
            ``(C) Notwithstanding subparagraph (A), a monopoly contract 
        may be awarded if the head of the agency determines in writing 
        that--
                    ``(i) for one of the reasons set forth in section 
                2304(c), a single task or delivery order contract is in 
                the best interest of the Federal Government; or
                    ``(ii) the task orders expected under the contract 
                are so integrally related that only a single contractor 
                can reasonably perform the work.''.
            (2) Section 2304a(d)(1) of such title is amended by 
        striking ``The head'' and inserting ``Subject to paragraph (4), 
        the head''.
            (3) Subsection (e) of section 2304b of such title is 
        amended to read as follows:
    ``(e) Multiple Awards.--Section 2304a(d) of this title applies to a 
task or delivery order contract for the procurement of advisory and 
assistance services under this section.''.

SEC. 202. LIMITATIONS ON TIERING OF SUBCONTRACTORS.

    (a) Revision of FAR.--Not later than one year after the date of the 
enactment of this Act, the Federal Acquisition Regulation shall be 
revised to minimize the excessive use by contractors of subcontractors 
or tiers of subcontractors to perform the principal work of any 
contract described in subsection (c).
    (b) Specific Requirement.--At a minimum, the regulations 
promulgated under subsection (a) shall--
            (1) preclude a contractor from using subcontracts for more 
        than 65 percent of the cost of the contract (not including 
        overhead and profit), unless the head of the executive agency 
        concerned determines that exceptional circumstances apply; and
            (2) preclude a subcontractor from using a lower tier 
        subcontractor for more than 65 percent of the cost of the 
        subcontract (not including overhead and profit), unless the 
        head of the executive agency concerned determines that 
        exceptional circumstances apply.
    (c) Covered Contracts.--This section applies to any cost-
reimbursement type contract in an amount greater than the simplified 
acquisition threshold entered into by an executive agency.
    (d) Definitions.--In this section:
            (1) The term ``executive agency'' has the meaning provided 
        in section 4(1) of the Office of Federal Procurement Policy Act 
        (41 U.S.C. 403(1)).
            (2) The term ``head of the executive agency'' means the 
        head of an executive agency except that, in the case of a 
        military department, the term means the Secretary of Defense.

SEC. 203. MINIMIZING COST-REIMBURSEMENT TYPE CONTRACTS.

    (a) Plans Required.--The head of each executive agency covered by 
title III of the Federal Property and Administrative Services Act of 
1949 (41 U.S.C. 251 et seq.) and the head of each agency covered by 
chapter 137 of title 10, United States Code, shall develop and 
implement a plan to minimize the use of cost-reimbursement type 
contracts by the agency concerned. The plan shall contain measurable 
goals and shall be completed and submitted to the Committee on 
Government Reform of the House of Representatives and the Committee on 
Homeland Security and Governmental Affairs of the Senate, with a copy 
provided to the Comptroller General, not later than 1 year after the 
date of the enactment of this Act.
    (b) Comptroller General Review.--The Comptroller General shall 
review the plans provided under subsection (a) and submit a report to 
Congress on the plans not later than 18 months after the date of the 
enactment of this Act.

       TITLE III--PREVENTING THE ABUSE OF CONTRACT FLEXIBILITIES

SEC. 301. PREVENTING ABUSE OF COMMERCIAL ITEM AUTHORITY.

    Section 4(12) of the Office of Federal Procurement Policy Act (41 
U.S.C. 403(12)) is amended--
            (1) by striking the following:
                    ``(C) Any item that, but for--
                            ``(i) modifications of a type customarily 
                        available in the commercial marketplace, or
                            ``(ii) minor modifications made to meet 
                        Federal Government requirements,
                would satisfy the criteria in subparagraph (A) or 
                (B).''; and
            (2) in subparagraphs (D) and (E), by striking ``(C),'' each 
        place it appears.

SEC. 302. PREVENTING ABUSE OF OTHER TRANSACTION AUTHORITY.

    Section 845(d)(1) of the National Defense Authorization Act for 
Fiscal Year 1994 (10 U.S.C. 2371 note) is amended--
            (1) by striking ``unless--'' and all that follows in 
        subparagraph (A) through ``at least'' and inserting ``unless 
        there is at least'';
            (2) by striking ``; or'' and inserting a period; and
    (3) by striking the following:
                    ``(B) no nontraditional defense contractor is 
                participating to a significant extent in the prototype 
                project, but at least one of the following 
                circumstances exists:
                            ``(i) At least one third of the total cost 
                        of the prototype project is to be paid out of 
                        funds provided by parties to the transaction 
                        other than the Federal Government.
                            ``(ii) The senior procurement executive for 
                        the agency (as designated for the purposes of 
                        section 16(3) of the Office of Federal 
                        Procurement Policy Act (41 U.S.C. 414(3)) 
                        determines in writing that exceptional 
                        circumstances justify the use of a transaction 
                        that provides for innovative business 
                        arrangements or structures that would not be 
                        feasible or appropriate under a contract.''.

SEC. 303. PREVENTING ABUSE OF INTERAGENCY CONTRACTS.

    (a) Office of Management and Budget Policy Guidance.--
            (1) Report and guidelines.--Not later than one year after 
        the date of the enactment of this Act, the Director of the 
        Office of Management and Budget shall--
                    (A) submit to Congress a comprehensive report on 
                interagency acquisitions, including their frequency of 
                use, management controls, cost-effectiveness, and 
                savings generated; and
                    (B) issue guidelines to assist the heads of 
                executive agencies in improving the management of 
                interagency acquisitions.
            (2) Matters covered by guidelines.--For purposes of 
        paragraph (1)(B), the Director shall include guidelines on the 
        following matters:
                    (A) Procedures for the use of interagency 
                acquisitions to maximize competition, deliver best 
                value to executive agencies, and minimize waste, fraud, 
                and abuse.
                    (B) Categories of contracting inappropriate for 
                interagency acquisition, due to high risk of waste, 
                fraud, or abuse.
                    (C) Requirements for training acquisition workforce 
                personnel in the proper use of interagency 
                acquisitions.
    (b) Regulations Required.--Not later than one year after the date 
of the enactment of this Act, the Federal Acquisition Regulation shall 
be revised to require that all interagency acquisitions--
            (1) include a written agreement between the requesting 
        agency and the servicing agency assigning responsibility for 
        the administration and management of the contract;
            (2) include a determination that an interagency acquisition 
        is the best procurement alternative; and
            (3) include sufficient documentation to ensure an adequate 
        audit.
    (c) Agency Reporting Requirement.--The senior procurement executive 
for each executive agency shall, as directed by the Director of the 
Office of Management and Budget, submit to the Director annual reports 
on the actions taken by the executive agency pursuant to the guidelines 
issued under subsection (a).
    (d) Definitions.--In this section:
            (1) The term ``executive agency'' has the meaning given 
        such term in section 4(1) of the Office of Federal Procurement 
        Policy Act (41 U.S.C. 403(1)).
            (2) The term ``head of executive agency'' means the head of 
        an executive agency except that, in the case of a military 
        department, the term means the Secretary of Defense.
            (3) The term ``interagency acquisition'' means a procedure 
        by which an executive agency needing supplies or services (the 
        requesting agency) obtains them from another executive agency 
        (the servicing agency). The term includes acquisitions under 
        section 1535 of title 31, United States Code (commonly referred 
        to as the ``Economy Act'', Federal Supply Schedules, and 
        government-wide acquisition contracts.

SEC. 304. PREVENTING ABUSE OF GOVERNMENT CREDIT CARDS.

    (a) Office of Management and Budget Policy Guidance.--Not later 
than 180 days after the date of enactment of this Act, the Director of 
the Office of Management and Budget shall revise Appendix B of OMB 
Circular A-123 to ensure the adequacy of the following:
            (1) Procedures for identifying employees who should receive 
        government credit cards.
            (2) Requirements for training employees in the proper use 
        of government credit cards.
            (3) Procedures for monitoring and auditing government 
        credit cards to prevent waste, fraud, and abuse.
            (4) Procedures for preventing the use of government credit 
        cards for personal purchases.
            (5) Requirements to ensure adequate personnel for 
        monitoring and auditing government credit card use.
            (6) Procedures for the collection and dissemination of best 
        practices and successful strategies for achieving savings 
        through the use of government credit cards.
    (b) Reporting Requirement.--Not later than one year after the date 
of the enactment of this Act, the Director of the Office of Management 
and Budget shall report to Congress a Government-wide summary for the 
previous fiscal year of the information required to be reported to OMB 
by executive agencies pursuant to OMB Circular A-123 (as revised 
February, 2006).
    (c) Definitions.--In this section the term ``government credit 
card'' means an account established by a commercial financial 
institution on behalf of agencies or individual agency employees to 
which the cost of purchasing goods and services may be charged and 
includes government-issued purchase, travel, and fleet cards.

SEC. 305. REPEAL OF ALASKA NATIVE CORPORATION LOOPHOLE.

    Section 602(a) of the Business Opportunity Development Reform Act 
of 1988 (Public Law 100-656; 15 U.S.C. 637 note) is hereby repealed.

                TITLE IV--INCREASING CONTRACT OVERSIGHT

SEC. 401. FUNDING CONTRACT OVERSIGHT.

    (a) Civilian Agency Contracts.--Title III of the Federal Property 
and Administrative Services Act of 1949 (41 U.S.C. 251 et seq.) is 
amended by adding at the end the following new section:

``SEC. 318. REQUIREMENT FOR 1 PERCENT OF CONTRACT AMOUNTS TO BE USED 
              FOR CONTRACT PERSONNEL, ADMINISTRATION, OVERSIGHT, AND 
              PLANNING.

    ``In addition to the sums used for the purposes listed in this 
section as of the date of the enactment of this section, each fiscal 
year, the head of an executive agency shall ensure that the agency uses 
an additional amount equal to 1 percent of the aggregate amount of 
contracts entered into by the agency during that fiscal year for the 
following purposes:
            ``(1) Hiring and training of acquisition workforce 
        personnel.
            ``(2) Contract planning.
            ``(3) Contract administration and oversight.
            ``(4) Contract audits and enforcement.''.
    (b) Defense Contracts.--Chapter 141 of title 10, United States 
Code, is amended by adding at the end the following new section:
``Sec. 2410p. Requirement for 1 percent of contract amounts to be used 
              for contract personnel, administration, oversight, and 
              planning
    ``In addition to the sums used for the purposes listed in this 
section as of the date of the enactment of this section, each fiscal 
year, the head of an agency (as defined in section 2302(1) of this 
title) shall ensure that the agency uses an additional amount equal to 
1 percent of the aggregate amount of contracts entered into by the 
agency during that fiscal year for the following purposes:
            ``(1) Hiring and training of acquisition workforce 
        personnel.
            ``(2) Contract planning.
            ``(3) Contract administration and oversight.
            ``(4) Contract audits and enforcement.''.

SEC. 402. PROHIBITION ON CONTRACTOR CONFLICTS OF INTEREST.

    (a) Prohibition.--An agency may not enter into a 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 or any related entity;
                    (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 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).
    (d) Effective Date and Applicability.--This section shall take 
effect on the date of enactment of this Act and shall apply to--
            (1) contracts entered into on or after such date;
            (2) any task or delivery order issued on or after such date 
        under a contract entered into before, on, or after such date; 
        and
            (3) any decision on or after such date to exercise an 
        option or otherwise extend a contract for the performance of a 
        function relating to contract oversight regardless of whether 
        such contract was entered into before, on, or after the date of 
        enactment of this Act.

SEC. 403. DISCLOSURE OF GOVERNMENT CONTRACTOR OVERCHARGES.

    (a) Quarterly Report to Congress.--
            (1) The head of each Federal agency or department shall 
        submit to the chairman and ranking member of each committee 
        described in paragraph (2) on a quarterly basis a report that 
        includes the following:
                    (A) 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 contract, task or delivery order, or 
                subcontract.
                    (B) 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.
                    (C) A list of audits or other reports issued during 
                the applicable quarter that identify significant or 
                substantial deficiencies in the performance of any 
                contractor or in any business system of any contractor 
                under any contract, task or delivery order, or 
                subcontract.
            (2) The report described in paragraph (1) 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.
    (b) Submission of Individual Audits.--The head of each Federal 
agency or department shall provide, within 14 days after a request in 
writing by the chairman or ranking member of any of the committees 
described in subsection (a)(2), a full and unredacted copy of any audit 
or other report described in subsection (a)(1).

SEC. 404. PUBLIC AVAILABILITY OF FEDERAL CONTRACT AWARDS.

    (a) Amendment.--The Office of Federal Procurement Policy Act (41 
U.S.C. 403 et seq.) is amended by inserting after section 19 the 
following new section:

``SEC. 19A. PUBLIC AVAILABILITY OF CONTRACT AWARD INFORMATION.

    ``(a) In General.--Except as provided in subsection (b), not later 
than 14 days after the award of a 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.
            ``(9) The name of the executive agency that will receive 
        the goods or services procured under the contract, if other 
        than the agency awarding the contract.
    ``(b) Exception.--Nothing in this section shall require the 
disclosure of classified information.''.
    (b) Clerical Amendment.--The table of contents contained in section 
1(b) of such Act is amended by inserting after the item relating to 
section 19 the following new item:

``Sec. 19A. Public availability of contract award information.''.
    (c) Effective Date.--The amendments made by this Act shall apply to 
contracts entered into more than 90 days after the date of the 
enactment of this Act.

SEC. 405. 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 
contract or task or delivery order under a task or delivery order 
contract entered into by the agency, within 14 days after receipt of 
the request, unredacted copies of 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 and other evaluations;
            (8) justification for type of contract;
            (9) authority for deviations from regulations, statutory 
        requirements, or other restrictions;
            (10) bills, invoices, vouchers, and supporting documents;
            (11) records of payments or receipts; and
            (12) compensation determinations.
    (b) Committees.--The committees referred to in subsection (a) are 
the following:
            (1) The Committee on 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.
            (4) A subcommittee of jurisdiction of any of the committees 
        referred to in paragraphs (1), (2), or (3).

SEC. 406. OVERSIGHT BY THE GOVERNMENT REFORM COMMITTEE.

    Clause (4)(c) of Rule X of the Rules of the House of 
Representatives is amended by adding at the end the following new 
subparagraph:
            ``(3) In addition to its duties under subparagraph (1), the 
        Committee on Government Reform, or their subcommittees of 
        jurisdiction, shall hold hearings to investigate credible 
        evidence or allegations of waste, fraud, abuse, or 
        mismanagement in Federal contracts, including allegations or 
        evidence presented in reports by an Inspector General of a 
        Federal agency, the Government Accountability Office, or the 
        Defense Contract Audit Agency.''.

SEC. 407. NONPARTISAN CHIEF ACQUISITION OFFICERS.

    Section 16 of the Office of Federal Procurement Policy Act (41 
U.S.C. 414) is amended in subsection (a)(1) by striking ``non-career 
employee as''.

SEC. 408. IMPROVING THE FEDERAL PROCUREMENT DATA SYSTEM.

    (a) Availability on Single Website.--
            (1) Requirement.--The Federal Procurement Data System 
        described in section 6(d)(4) of the Office of Federal 
        Procurement Policy Act (41 U.S.C. 405(d)(4)) shall be modified, 
        under the direction of the Administrator for Federal 
        Procurement Policy, so that not later than one year after the 
        date of the enactment of this Act, the complete data contained 
        in the system are available from a single Internet website 
        that--
                    (A) allows for downloading of the data;
                    (B) is publicly accessible at no cost;
                    (C) is user-friendly; and
                    (D) is in a format that is easily searchable and 
                that can be aggregated by data element.
            (2) Comptroller general report.--Not later than 1 year 
        after the date of the enactment of this Act, the Comptroller 
        General shall submit to Congress a report on compliance with 
        the requirement of paragraph (1).
    (b) Classified Annex.--
            (1) Requirement.--The Federal Procurement Data System also 
        shall be modified, under the direction of the Administrator for 
        Federal Procurement Policy, to contain a classified annex. The 
        annex shall contain the same information for classified 
        contracts that is required for unclassified contracts. The 
        annex shall be protected at all times by procedures established 
        for information that has been specifically authorized under 
        criteria established by an Executive order or an Act of 
        Congress to be kept classified in the interest of national 
        defense or foreign policy.
            (2) Agency reporting requirement.--The head of each 
        executive agency shall submit to Congress each year a report, 
        in unclassified form, that includes the following:
                    (A) The agency's total budget for classified 
                procurement spending.
                    (B) The percentage of that agency's annual 
                classified procurement spending that is awarded for 
                contracts--
                            (i) entered into using procedures other 
                        than competitive procedures when the goods or 
                        services are available from only one 
                        responsible source;
                            (ii) entered into using procedures other 
                        than competitive procedures when the goods or 
                        services are available from a limited number of 
                        responsible sources; and
                            (iii) entered into using full and open 
                        competition.
    (c) Agency Reporting Requirement.--The senior procurement officer 
for each executive agency shall, as directed by the Director of the 
Office of Management and Budget, submit to the Director annual reports 
on the actions taken by the executive agency pursuant to the guidelines 
issued under subsection (a).

SEC. 409. ENFORCEMENT THROUGH BID PROTEST.

    Any aggrieved party may protest a lack of compliance with sections 
101, 102, 201, 202, or 602 of this Act or any amendments made by those 
sections, including an arbitrary decision by the agency head. Nothing 
in the preceding sentence shall be interpreted to affect protest rights 
available to an aggrieved party under other provisions of law.

               TITLE V--PREVENTING UNJUSTIFIED AWARD FEES

SEC. 501. ENCOURAGING EXCELLENT CONTRACT PERFORMANCE.

    (a) Limitation.--For any cost-based contract entered into by the 
Federal Government that includes an award or incentive fee--
            (1) the fee may be paid only for above-satisfactory 
        performance of the contract; and
            (2) at a minimum, the following factors shall be considered 
        in making a determination regarding whether, and in what 
        amount, the fee shall be paid to the contractor:
                    (A) Whether the contractor met cost goals.
                    (B) Whether the contractor met schedule goals.
                    (C) Whether the contractor met performance goals 
                and delivered the goods or services required to be 
                provided under the contract.
    (b) Definition.--In this section, the term ``above-satisfactory 
performance'' includes ratings of excellent, outstanding, and very 
good, as well as equivalent ratings, but excludes ratings of 
acceptable, average, expected, good, and satisfactory, as well as 
equivalent ratings.

             TITLE VI--DETERRING CORRUPTION IN CONTRACTING

SEC. 601. CLOSING THE REVOLVING DOOR.

    (a) Elimination of Loopholes That Allow Former Federal Officials to 
Accept Compensation From Contractors or Related Entities.--Section 
27(d) of the Office of Federal Procurement Policy Act (41 U.S.C. 
423(d)) is amended--
            (1) in paragraph (1)--
                    (A) by striking ``or consultant'' and inserting 
                ``consultant, lawyer, or lobbyist'';
                    (B) by striking ``one year'' and inserting ``two 
                years''; and
                    (C) in subparagraph (C), by striking ``personally 
                made for the Federal agency--'' and inserting 
                ``participated personally and substantially in--''; and
            (2) by amending paragraph (2) to read as follows:
            ``(2) Paragraph (1) shall not prohibit a former official of 
        a Federal agency from accepting compensation from any division 
        or affiliate of a contractor that does not produce the same or 
        similar products or services as the entity of the contractor 
        that is responsible for the contract referred to in 
        subparagraph (A), (B), or (C) of such paragraph if the agency's 
        designated ethics officer determines that--
                    ``(A) the offer of compensation is not a reward for 
                any action described in paragraph (1); and
                    ``(B) acceptance of the compensation is appropriate 
                and will not affect the integrity of the procurement 
                process.''.
    (b) 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),''.
    (c) Requirement on Award of Government Contracts to 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.--An employee of the Federal Government who 
is a former employee of a contractor with the Federal Government shall 
not be personally and substantially involved with any award of a 
contract to the employee's former employer, or the administration of 
such a contract, for the two-year period beginning on the date on which 
the employee leaves the employment of the contractor.''.
    (d) Regulations.--Section 27 of such Act (41 U.S.C. 423) is further 
amended by adding at the end of the following new subsection:
    ``(j) Regulations.--The Administrator, in consultation with the 
Director of the Office of Government Ethics, shall--
            ``(1) promulgate regulations to carry out and ensure the 
        enforcement of this section; and
            ``(2) monitor and investigate individual and agency 
        compliance with this section.''.

SEC. 602. REQUIRING CONTRACTOR INTEGRITY AND BUSINESS ETHICS.

    (a) Civilian Agency Contractors.--(1) Title III of the Federal 
Property and Administrative Services Act of 1949 (41 U.S.C. 251 et 
seq.) is amended by inserting after section 303N, as added by section 
102, the following new section:

``SEC. 303O. PROHIBITION OF AWARD TO UNETHICAL CONTRACTORS.

    ``(a) In General.--No prospective contractor may be awarded a 
contract with an agency unless the contracting officer for the contract 
determines that such prospective contractor has a satisfactory record 
of integrity and business ethics.
    ``(b) Definition.--No prospective contractor shall be considered to 
have a satisfactory record of integrity and business ethics if it--
            ``(1) has exhibited a pattern of overcharging the 
        Government under Federal contracts;
            ``(2) has exhibited a pattern of failing to comply with the 
        law, including tax, labor and employment, environmental, 
        antitrust, and consumer protection laws; or
            ``(3) has an outstanding debt with a Federal agency in a 
        delinquent status.''
    (2) The table of sections at the beginning of such Act is amended 
by inserting after the item relating to section 303N, as added by 
section 102, the following new item:

``Sec. 303O. Prohibition of award to unethical contractors.''.
    (b) Defense Contractors.--(1) Chapter 137 of title 10, United 
States Code, is amended by inserting after section 2305a the following 
new section:
``Sec. 2305b. Prohibition of award to unethical contractors
    ``Section 303O of the Federal Property and Administrative Services 
Act of 1949 shall apply to a prospective contractor that may be awarded 
a contract with an agency under this title in the same manner as such 
section applies to a prospective contractor that may be awarded a 
contract with an agency covered by that section.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 2305a the 
following new item:

``2305b. Prohibition of award to unethical contractors.''.
    (c) Effective Date.--The amendments made by this section shall 
apply with respect to contracts for which solicitations are issued 
after the date of the enactment of this Act.

SEC. 603. ENHANCEMENT OF WHISTLEBLOWER PROTECTIONS.

    (a) Civilian Agency Contracts.--Section 315(c) of the Federal 
Property and Administrative Services Act of 1949 (41 U.S.C. 265(c)), is 
amended--
            (1) in paragraph (1), by striking ``If the head'' and all 
        that follows through ``actions:'' and inserting the following: 
        ``Not later than 180 days after submission of a complaint under 
        subsection (b), the head of the executive agency concerned 
        shall determine whether the contractor concerned has subjected 
        the complainant to a reprisal prohibited by subsection (a) and 
        shall either issue an order denying relief or shall take one or 
        more of the following actions:''; and
            (2) by redesignating paragraph (3) as paragraph (4) and 
        adding after paragraph (2) the following new paragraph (3):
    ``(3) If the head of an executive agency has not issued an order 
within 180 days after the submission of a complaint under subsection 
(b) and there is no showing that such delay is due to the bad faith of 
the complainant, the complainant shall be deemed to have exhausted his 
administrative remedies with respect to the complaint, and the 
complainant may bring an action at law or equity for de novo review to 
seek compensatory damages and other relief available under this section 
in the appropriate district court of the United States, which shall 
have jurisdiction over such an action without regard to the amount in 
controversy.''.
    (b) Armed Services Contracts.--Section 2409 of title 10, United 
States Code, is amended--
            (1) in paragraph (1), by striking ``If the head'' and all 
        that follows through ``actions:'' and inserting the following: 
        ``Not later than 180 days after submission of a complaint under 
        subsection (b), the head of the agency concerned shall 
        determine whether the contractor concerned has subjected the 
        complainant to a reprisal prohibited by subsection (a) and 
        shall either issue an order denying relief or shall take one or 
        more of the following actions:''; and
            (2) by redesignating paragraph (3) as paragraph (4) and 
        adding after paragraph (2) the following new paragraph (3):
    ``(3) If the head of an agency has not issued an order within 180 
days after the submission of a complaint under subsection (b) and there 
is no showing that such delay is due to the bad faith of the 
complainant, the complainant shall be deemed to have exhausted his 
administrative remedies with respect to the complaint, and the 
complainant may bring an action at law or equity for de novo review to 
seek compensatory damages and other relief available under this section 
in the appropriate district court of the United States, which shall 
have jurisdiction over such an action without regard to the amount in 
controversy.''.
                                 <all>