110 HR 3383 IH: Defense Contracting Ethics Oversight U.S. House of Representatives 2007-08-03 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

I 110th CONGRESS 1st Session H. R. 3383 IN THE HOUSE OF REPRESENTATIVES August 3, 2007 Mr. Castle introduced the following bill; which was referred to the Committee on Armed Services, and in addition to the Committee on Oversight and Government Reform, 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 require internal ethics compliance programs by Department of Defense contractors, and for other purposes.

1.

Short title

This Act may be cited as the Defense Contracting Ethics Oversight Act of 2007.

2.

Ethics compliance by Department of Defense contractors

(a)

In general

Not later than 180 days after the date of the enactment of this Act, the Secretary of Defense shall prescribe in regulations a requirement that a contracting officer of the Department of Defense may not determine a contractor to be responsible for purposes of the award of a covered contract for the Department unless the entity to be awarded the contract has in place, by the deadline specified in subsection (c), an internal ethics compliance program, including a code of ethics and internal controls, to facilitate the timely detection and disclosure of improper conduct in connection with the award or performance of the covered contract and to ensure that appropriate corrective action is taken with respect to such conduct. (b)

Elements of Ethics Compliance Program

Each ethics compliance program required of a contractor under subsection (a) shall include the following: (1)Requirements for periodic reviews of the performance of the covered contract to ensure compliance of contractor personnel with applicable Government contracting requirements, including laws, regulations, and contractual requirements. (2)Internal reporting mechanisms, such as a hot-line, for contractor personnel to report suspected improper conduct among contractor personnel. (3)Audits of the performance of the covered contract. (4)Mechanisms for disciplinary actions against contractor personnel found to have engaged in improper conduct, including the exclusion of such personnel from the exercise of substantial authority. (5)Mechanisms for the reporting to appropriate Government officials, including the contracting officer and the Office of the Inspector General of the Department of Defense, of suspected improper conduct among contractor personnel, including suspected conduct involving corruption of a Government official or individual acting on behalf of the Government, not later than 30 days after the date of discovery of such suspected conduct. (6)Mechanisms to ensure full cooperation with Government officials responsible for investigating suspected improper conduct among contractor personnel and for taking corrective actions. (7)Mechanisms to ensure the recurring provision of training to contractor personnel on the requirements and mechanisms of the ethics compliance program. (8)Mechanisms to ensure the oversight of the ethics compliance program by contractor personnel with substantial authority within the contractor. (c)

Deadline for Program

The deadline specified in this subsection for a contractor having in place an ethics compliance program required under subsection (a) for purposes of a covered contract is 30 days after the date of the award of the contract. (d)

Determination of Existence of Program

In determining whether a contractor has in place an ethics compliance program required under subsection (a), a contracting officer of the Department may use the assistance of the Office of the Inspector General of the Department of Defense. (e)

Suspension or Debarment

The regulations prescribed under subsection (a) shall provide that any contractor under a covered contract whose personnel are determined not to have reported suspected improper conduct in accordance with the requirements and mechanisms of the ethics compliance program concerned may, at the election of the Secretary of Defense, be suspended from the contract or debarred from further contracting with the Department of Defense. (f)

Covered Contract Defined

In this section, the term covered contract means any contract to be awarded to a contractor of the Department of Defense if, in the year before the contract is to be awarded, the total amount of contracts of the contractor with the Federal Government exceeded $5,000,000.

3.

Report to Congress on personal financial conflicts of interest

(a)

Report

Not later than 180 days after the date of the enactment of this Act, the Administrator for Federal Procurement Policy, after consultation with the Director of the Office of Government Ethics, shall submit to Congress a report that contains— (1)a description of current Federal laws, regulations, and practices relating to restrictions on personal financial interests applicable to Federal employees and non-Federal employees; and (2)the Administrator’s findings and any recommendations for establishing a requirement for compliance with restrictions relating to personal financial interests such as those that apply to Federal employees by— (A)those employees of a covered Government contractor who are specifically retained for and engage in providing advice to one or more Federal agencies; and (B)employees of federally funded research and development centers. (b)

Definitions

In this section: (1)

Covered Government contractor

The term covered Government contractor means any entity (other than a Federal agency) awarded a contract by a Federal agency under which one or more individuals hired by the entity perform an acquisition planning function that is closely associated with the responsibilities of a Federal employee. For purposes of the preceding sentence, the term acquisition planning function means the function of providing advice to a Federal agency on acquisition planning with respect to a particular acquisition or acquisitions. (2)

Federal employee

The term Federal employee means an employee of a Federal agency. (3)

Federal agency

The term Federal agency means any of the following: (A)any executive department or independent establishment in the executive branch of the Government, including any wholly owned Government corporation. (B)any establishment in the legislative or judicial branch of the Government (except the Senate, the House of Representatives, and the Architect of the Capitol and any activities under the Architect’s direction). (4)

Federally funded research and development center

The term federally funded research and development center means a federally funded research and development center identified by the National Science Foundation in accordance with the Federal Acquisition Regulation.