I 111th CONGRESS 1st Session H. R. 2825 IN THE HOUSE OF REPRESENTATIVES June 11, 2009 Ms. Shea-Porter (for herself, Ms. Moore of Wisconsin, Mr. Carnahan, Mr. McGovern, Ms. Schakowsky, Mr. DeFazio, Mr. Nye, and Mr. Bishop of New York) introduced the following bill; which was referred to the Committee on Armed Services A BILL To require the Secretary of Defense to debar from contracting with the Department of Defense any company found to have jeopardized the health or safety of Government personnel or found guilty of contract fraud, and for other purposes.

1.

Short title

This Act may be cited as the Safety in Defense Contracting Act.

2.

Requirement for Secretary of Defense to debar companies found to jeopardize health or safety of Government personnel or found guilty of contract fraud

(a)

Requirement To debar

(1)

Prime contractors

The Secretary of Defense shall debar from contracting with the Department of Defense any defense contractor— (A)that has been determined, through a criminal, civil, or administrative proceeding that results in a disposition listed in subsection (f), in the performance of a covered contract— (i)to have caused serious injury or death to any civilian or military personnel of the Government through gross negligence or with reckless disregard for the safety of such personnel; or (ii)to have committed fraud; or (B)that awarded a subcontract under a covered contract to a subcontractor that has been determined, through a criminal, civil, or administrative proceeding that results in a disposition listed in subsection (f), in the performance of the subcontract— (i)to have caused serious injury or death to any civilian or military personnel of the Government, through gross negligence or with reckless disregard for the safety of such personnel; or (ii)to have committed fraud. (2)

Subcontractors

The Secretary of Defense shall debar from contracting with the Department of Defense any subcontractor under a covered contract with respect to which a determination described in paragraph (1)(B) has been made. The Secretary of Defense also shall require, as a condition of any defense contract, that no subcontract may be awarded under the contract to any subcontractor with respect to which a determination described in paragraph (1)(B) has been made. (b)

Definitions

In this section: (1)The term defense contractor means a company awarded a covered contract. (2)The term covered contract means a contract awarded by the Department of Defense in an amount in excess of $500,000 for the procurement of goods or services. (c)

Applicability of debarment

A debarment required by subsection (a) shall apply only with respect to contracts sought by an offeror for the same or similar goods or services as those provided or performed under the contract or subcontract with respect to which a determination described in subparagraph (A) or (B) of subsection (a)(1) was made. (d)

Period of debarment

The debarment required by subsection (a) shall apply for a period of not less than five years after the date of the determination described in subsection (a)(1). (e)

Waiver

The debarment required by subsection (a) may be waived by the Secretary of Defense on a case-by-case basis if the Secretary finds that the debarment would jeopardize national security. (f)

List of dispositions in criminal, civil, or administrative proceedings

For purposes of subsection (a), the dispositions listed in this subsection are as follows: (1)In a criminal proceeding, a conviction. (2)In a civil proceeding, a finding of fault and liability that results in the payment of a monetary fine, penalty, reimbursement, restitution, or damages of $5,000 or more. (3)In an administrative proceeding, a finding of fault and liability that results in— (A)the payment of a monetary fine or penalty of $5,000 or more; or (B)the payment of a reimbursement, restitution, or damages in excess of $100,000. (4)To the maximum extent practicable and consistent with applicable laws and regulations, in a criminal, civil, or administrative proceeding, a disposition of the matter by consent or compromise with an acknowledgment of fault by the person if the proceeding could have led to any of the outcomes specified in paragraph (1), (2), or (3).

3.

Withholding of certain contract fees

In the case of any defense contractor that receives a level III corrective action request from the Defense Contract Management Agency in a fiscal year, the Secretary of Defense shall withhold any award or incentive fees on the contract for that fiscal year. With respect to any such fees already paid to the contractor during that fiscal year, the Secretary shall require the contractor to pay back the fees.