[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 3909 Introduced in Senate (IS)]

111th CONGRESS
  2d Session
                                S. 3909

 To restore accountability and congressional oversight to the defense 
                          contracting process.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 29, 2010

Mr. Wyden (for himself and Mr. Merkley) introduced the following bill; 
  which was read twice and referred to the Committee on Armed Services

_______________________________________________________________________

                                 A BILL


 
 To restore accountability and congressional oversight to the defense 
                          contracting process.

    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 ``Accountability for Defense 
Contractors Act''.

SEC. 2. RESTORING CONGRESSIONAL NOTIFICATION OF INDEMNIFICATION.

    Public Law 85-804 is amended by adding at the end the following new 
section:

``SEC. 5. REPORTS TO CONGRESS.

    ``(a) Requirement.--If the Department of Defense takes any action 
under authority of this Act during any year, the Secretary of Defense 
shall, by March 15 of the succeeding year, submit to Congress a report 
on all such actions taken by the Department during that preceding year. 
With respect to actions that involve actual or potential cost to the 
United States in excess of $1,000,000, the report shall--
            ``(1) name the contractor;
            ``(2) state the actual cost or estimated potential cost 
        involved;
            ``(3) describe the property or services involved; and
            ``(4) state further the circumstances justifying the action 
        taken.
    ``(b) Omissions.--There may be omitted in a report under subsection 
(a) any information the disclosure of which would be detrimental to the 
national security, if the Secretary of Defense provides justification 
of such omission to the relevant congressional committees.''.

SEC. 3. PROHIBITION OF INDEMNIFICATION FOR CONTRACTORS IN CASES 
              INVOLVING GROSS NEGLIGENCE, WILLFUL MISCONDUCT, OR LACK 
              OF GOOD FAITH BY CONTRACTORS.

    Public Law 85-804, as amended by section 2, is further amended by 
adding at the end the following new section:

``SEC. 6. PROHIBITION OF INDEMNIFICATION IN CERTAIN CASES.

    ``(a) In General.--A contractor of the Department of Defense shall 
not be indemnified for--
            ``(1) government claims against the contractor (other than 
        those arising through subrogation);
            ``(2) a claim, loss, or damage caused by gross negligence, 
        willful misconduct, or lack of good faith on the part of any of 
        the contractor's principal officials (as defined by part 
        52.250-1 of the Federal Acquisition Regulation); or
            ``(3) a claim, loss, or damage resulting from an unusually 
        hazardous or nuclear risk not specified in the terms of the 
        contract and discovered on the site where the contract is 
        performed, or that reasonably should have been discovered on 
        the site.
    ``(b) Notification.--In the case of an unusually hazardous or 
nuclear risk referred to in subsection (a)(3), the contractor shall 
immediately notify the contracting officer of such risk upon discovery 
or when discovery reasonably should have been made.''.

SEC. 4. CONGRESSIONAL NOTIFICATION AND THE LOSS OF INDEMNIFICATION IN 
              OTHER CASES.

    (a) In General.--A contract entered into by the Department of 
Defense under authority that provides for indemnification not 
authorized by the provisions of law listed in subsection (b) may 
provide for indemnification of the contractor as the Secretary of 
Defense determines to be necessary only if--
            (1) the contract complies with the requirements in section 
        5 of Public Law 85-804 (as added by section 2), relating to 
        notice to Congress; and
            (2) the contract complies with the requirements in section 
        6 of Public Law 85-804 (as added by section 3), relating to a 
        prohibition on indemnification for certain claims and a 
        requirement for notification.
    (b) Provisions of Law Listed.--The provisions of laws listed in 
this subsection are as follows:
            (1) Section 2354 of title 10, United States Code.
            (2) The Comprehensive Environmental Response, Compensation, 
        and Liability Act of 1980 (42 U.S.C. 9601 et seq.).
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