[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5712 Reported in House (RH)]






                                                 Union Calendar No. 372
110th CONGRESS
  2d Session
                                H. R. 5712

                          [Report No. 110-599]

  To require disclosure by Federal contractors of certain violations 
       relating to the award or performance of Federal contracts.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 3, 2008

     Mr. Welch of Vermont (for himself, Mr. Towns, and Mr. Waxman) 
 introduced the following bill; which was referred to the Committee on 
                    Oversight and Government Reform

                             April 22, 2008

 Additional sponsors: Mr. Sarbanes, Mr. Braley of Iowa, Mr. Hodes, Mr. 
                 Murphy of Connecticut, and Mr. Sherman

                             April 22, 2008

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
  [Omit the part struck through and insert the part printed in italic]

_______________________________________________________________________

                                 A BILL


 
  To require disclosure by Federal contractors of certain violations 
       relating to the award or performance of Federal contracts.

    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 ``Close the Contractor Fraud Loophole 
Act''.

<DELETED>SEC. 2. REQUIREMENT TO NOTIFY INSPECTORS GENERAL OF CERTAIN 
              VIOLATIONS RELATED TO CERTAIN FEDERAL 
              CONTRACTS.</DELETED>

<DELETED>    (a) Notification of Certain Contract Violations.--
</DELETED>
        <DELETED>    (1) Requirement.--A covered contractor shall 
        submit written notification to the Office of Inspector General 
        of the Executive agency that awarded the covered contract 
        whenever the contractor has reasonable grounds to believe that 
        the contractor, or a principal, employee, agent, or 
        subcontractor of the contractor, has committed a violation of 
        Federal criminal law, or has received a significant 
        overpayment, in connection with the award or performance of the 
        covered contract or any subcontract under the 
        contract.</DELETED>
        <DELETED>    (2) Cause for debarment or suspension.--A knowing 
        violation to notify an Inspector General of a violation or 
        overpayment covered by paragraph (1) shall be a cause for 
        debarment or suspension of the covered contractor.</DELETED>
        <DELETED>    (3) Timing of notification.--A notification under 
        paragraph (1) shall be submitted within 14 days after the 
        contractor becomes aware of the violation or 
        overpayment.</DELETED>
        <DELETED>    (4) Copy of notification.--A copy of any 
        notification under paragraph (1) shall be submitted by the 
        contractor to the contracting officer for the 
        contract.</DELETED>
<DELETED>    (b) Definitions.--In this Act:</DELETED>
        <DELETED>    (1) The term ``covered contract'' means any 
        contract in an amount greater than $5,000,000 and more than 120 
        days in duration, whether performed inside or outside the 
        United States. The term includes a contract for commercial 
        items.</DELETED>
        <DELETED>    (2) The term ``covered contractor'' means an 
        entity performing a covered contract awarded by an executive 
        agency.</DELETED>
        <DELETED>    (3) The term ``Executive agency'' has the meaning 
        provided in section 105 of title 5, United States 
        Code.</DELETED>
<DELETED>    (c) Applicability.--This Act applies to all work performed 
under covered contracts, whether the work is performed inside or 
outside the United States.</DELETED>

SEC. 2. REVISION OF THE FEDERAL ACQUISITION REGULATION.

     The Federal Acquisition Regulation shall be amended within 180 
days after the date of the enactment of this Act pursuant to FAR Case 
2007-006 (as published at 72 Fed Reg. 64019, November 14, 2007) or any 
follow-on FAR case to include provisions that require timely 
notification by Federal contractors of violations of Federal criminal 
law or overpayments in connection with the award or performance of 
covered contracts or subcontracts, including those performed outside 
the United States and those for commercial items.

SEC. 3. DEFINITION.

    In this Act, the term ``covered contract'' means any contract in an 
amount greater than $5,000,000 and more than 120 days in duration.
                                                 Union Calendar No. 372

110th CONGRESS

  2d Session

                               H. R. 5712

                          [Report No. 110-599]

_______________________________________________________________________

                                 A BILL

  To require disclosure by Federal contractors of certain violations 
       relating to the award or performance of Federal contracts.

_______________________________________________________________________

                             April 22, 2008

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed