[Congressional Record Volume 156, Number 124 (Wednesday, September 15, 2010)]
[House]
[Pages H6703-H6704]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
OVERSEAS CONTRACTOR REFORM ACT
Mr. CLAY. Mr. Speaker, I move to suspend the rules and pass the bill
(H.R. 5366) to require the proposal for debarment from contracting with
the Federal Government of persons violating the Foreign Corrupt
Practices Act of 1977.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 5366
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 ``Overseas Contractor Reform
Act''.
SEC. 2. REQUIREMENT TO PROPOSE FOR DEBARMENT PERSONS
VIOLATING THE FOREIGN CORRUPT PRACTICES ACT.
(a) Requirement To Propose for Debarment.--Unless waived by
the head of a Federal agency under subsection (b), any person
found to be in violation of the Foreign Corrupt Practices Act
of 1977 shall be proposed for debarment from any contract or
grant awarded by the Federal Government within 30 days after
a final judgment of such violation.
(b) Waiver.--The head of a Federal agency may waive this
section for a Federal contract or grant. Any such waiver
shall be reported to Congress by the head of the agency
concerned within 30 days from the date of the waiver, along
with an accompanying justification.
(c) Final Judgment.--For purposes of this section, a
judgment becomes final when all appeals of the judgment have
been finally determined, or all time for filing such appeals
has expired.
(d) Definitions.--In this section:
(1) Contract.--The term ``contract'' means a binding
agreement entered into by a Federal agency for the purpose of
obtaining property or services.
(2) Person.--The term ``person'' includes--
(A) an individual;
(B) a partnership; and
(C) a corporation.
(3) Foreign corrupt practices act of 1977.--The term
``Foreign Corrupt Practices Act of 1977'' means--
(A) section 30A of the Securities Exchange Act of 1934 (15
U.S.C. 78dd-1); and
(B) sections 104 and 104A of the Foreign Corrupt Practices
Act (15 U.S.C. 78dd-2).
SEC. 3. GOVERNMENTAL POLICY.
It is the policy of the United States Government that no
Government contracts or grants should be awarded to
individuals or companies who violate the Foreign Corrupt
Practices Act of 1977.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Missouri (Mr. Clay) and the gentleman from Utah (Mr. Chaffetz) each
will control 20 minutes.
The Chair recognizes the gentleman from Missouri.
General Leave
Mr. CLAY. Mr. Speaker, I ask unanimous consent that all Members may
have 5 legislative days in which to revise and extend their remarks.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Missouri?
There was no objection.
Mr. CLAY. I yield myself such time as I may consume.
Mr. Speaker, contractors have been tarnishing the name of our good
country by bribing foreign officials with the very tax dollars our
country pays them. In our effort to win the hearts and minds of the
people of foreign countries, we must show that we take integrity and
honesty seriously. As such, we must take action against those
contractors who hinder our efforts and inappropriately utilize the
money we pay them. H.R. 5366, the Overseas Contractor Reform Act, will
provide the government with the means to appropriately respond to those
contractors.
H.R. 5366 was introduced by my colleague, Representative Peter Welch,
on May 20, 2010, and referred to the Committee on Oversight and
Government Reform, where we worked hard to get this important
legislation to the House floor.
This bill requires that any person convicted of violating the Foreign
Corrupt Practices Act of 1977 be proposed for debarment from any
further contracts or grants with the Federal Government within 30 days
after final judgment of the violation. The bill defines ``final
judgment'' as occurring when all appeals of the judgment have been
determined or all the time for filing such appeals has expired, so
there is no question regarding the person's guilt.
Additionally, this bill authorizes the head of a Federal agency to
issue a waiver, allowing contracts or grants to be awarded to the
contractors, but the agency head must justify the decision and report
the waiver and accompanying justification to Congress within 30 days.
{time} 1200
This bill also makes it Federal policy that no more contracts or
grants should be awarded to any individuals or companies who violate
the Foreign Corrupt Practices Act. This policy statement sends a strong
message to all that such waste, fraud, and abuse will not be tolerated.
This bill helps fight waste of tax dollars, protects the image of the
country, and helps ensure fair play in competition for contracts. H.R.
5366 is a common sense, good government bill, and I encourage my
colleagues to join me in supporting it.
Mr. Speaker, I reserve the balance of my time.
Mr. CHAFFETZ. Mr. Speaker, I yield myself such time as I may consume.
I rise today in support of H.R. 5366, the Overseas Contractor Reform
Act. The Committee on Oversight and Government Reform over the years
has uncovered numerous instances in which government continued doing
business with bad actors. This legislation will augment the U.S.
government's efforts to combat waste, fraud, and abuse in contracting.
It will ensure that we are awarding contracts and grants only to
parties with integrity.
The bill requires a Federal agency to propose for debarment from
receiving any new grants or contracts a person or entity found in
violation of the Foreign Corrupt Practices Act of 1977.
The Foreign Corrupt Practices Act makes it a crime to offer a bribe
to a foreign official for the purpose of obtaining or retaining
business from a foreign government.
Since the passage of the Foreign Corrupt Practices Act, the fraud
section of the Department of Justice has prosecuted individuals and
entities accused of bribing foreign officials. These parties are now
subject to fines, and although proposed debarment was already a
possible consequence, this bill sends the message that Congress,
without question, desires agencies to take administrative action
against parties convicted of violating the Foreign Corrupt Practices
Act.
This bill also provides agencies with a modicum of flexibility. If
the agency head finds it is in the best interest of the government to
waive the requirement for proposed debarment, a waiver is permissible.
However, the agency head must report the waiver to Congress and provide
a justification.
Mr. Speaker, I urge my colleagues to support H.R. 5366.
Mr. DINGELL. Mr. Speaker, I rise in support of H.R. 5366, the
Overseas Contracting Reform Act, which provides an important and
necessary recourse for our government when
[[Page H6704]]
contractors violate federal law. Specifically, the legislation requires
the automatic proposal for debarment of any contractor found to be in
violation of the Foreign Corrupt Practices Act, FCPA, which prohibits
American companies and individuals from unlawfully influencing foreign
officials.
I commend the sponsor of this legislation, Representative Peter Welch
of Vermont, for his work on this matter. Since the brutal shooting
incident at Baghdad's Nisour Square in which guards employed by the
private security contractor Blackwater Worldwide, now Xe Services,
allegedly shot and killed 17 innocent and unarmed Iraqi civilians, I
have worked to bring such contractors within the purview of U.S. law
and to hold them accountable for their actions. Unfortunately, even
after the Blackwater shooting gained considerable public attention,
reports indicated that not only did contractors remain a significant
part of the U.S. presence in Iraq and Afghanistan, but they also
continued to serve in inappropriate roles such as conducting
interrogations of suspected terrorists. All the while, the laws which
govern them remain vague.
As many of my colleagues and I have noted for several years, there is
an egregious lack of both accountability and transparency for such
firms and their employees. Although the Federal Acquisition Regulation,
FAR, enables government officials to initiate suspension and debarment
proceedings where the contractor has committed an offense ``that
seriously and directly affects the present responsibility of a
government contractor or subcontractor,'' among other things, no
official used this authority to initiate such proceedings with
Blackwater. Moreover, as a recent Senate Armed Services Committee
investigation underscores, Blackwater was able to secure new contracts
by creating several dozen subsidiaries for the sole purpose of
concealing its parent companies' identity. Contracting officers claim
they weren't even aware that they were awarding contracts to a company
under Blackwater's control.
It is clear that the existence of authority to debar under the FAR
is, in itself, insufficient to trigger debarment proceedings, perhaps
because agency officials are unwilling to initiate debarment
proceedings even when just cause is shown. That is why H.R. 5366 is an
important piece of legislation. It will provide that companies
automatically be proposed for debarment if they are found to be in
violation of the FCPA. The Department of Justice is investigating
whether Blackwater employees bribed Iraqi officials to allow them to
continue doing business in Iraq, an obvious violation of the FCPA.
Under H.R. 5366, if Blackwater is found guilty, the firm will
automatically be proposed for debarment.
Mr. Speaker, all loopholes for private security contractors working
overseas should have been closed long ago. Contractors and their
employees must be held accountable for their actions overseas,
especially during war time. This is not just important for the
America's reputation for upholding justice and the rule of law, but for
the safety and security of our troops and civilians serving overseas.
Failing to do so undermines American national security interests. I
urge my colleagues to join me in voting for H.R. 5366.
Mr. BLUMENAUER. Mr. Speaker, in today's wars, military contractors
play a larger role than ever before. As we have seen over the past
decade, our laws have been inadequate to curb what became a free-for-
all for contractors overseas. That is why I support efforts like this
one, to define and reign in unacceptable and damaging contractor
abuses.
In my own state of Oregon, 26 Oregon National Guardsmen have filed
suit against war contractor KBR, formerly a subsidiary of Halliburton,
alleging that KBR personnel knew a highly toxic chemical was present at
Iraqi facilities in 2003, but that they waited months before bringing
it to the attention of the U.S. military. By that time, unsuspecting
members of the Oregon, Indiana, and West Virginia National Guard had
already been exposed.
Even more troubling, if KBR is found to be at fault the company may
never have to pay for its actions. A still-classified clause in KBR's
contract may result in the U.S. Army--and U.S. taxpayers--paying for
the harm done by contractors.
This is just one instance of past contractor actions having continued
repercussions today. I will continue to work for swift congressional
action that will hold contractors accountable, strengthen oversight and
protect both our troops and the taxpayers.
I strongly support Mr. Welch's efforts here today, and those who help
tackle this problem on behalf of our brave men and women in uniform.
Mr. CHAFFETZ. Mr. Speaker, I have no further requests for time, and I
yield back the balance of my time.
Mr. CLAY. Mr. Speaker, I urge my colleagues to join me in supporting
this measure, and I yield back the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Missouri (Mr. Clay) that the House suspend the rules and
pass the bill, H.R. 5366.
The question was taken.
The SPEAKER pro tempore. In the opinion of the Chair, two-thirds
being in the affirmative, the ayes have it.
Mr. CLAY. Mr. Speaker, on that I demand the yeas and nays.
The yeas and nays were ordered.
The SPEAKER pro tempore. Pursuant to clause 8 of rule XX and the
Chair's prior announcement, further proceedings on this motion will be
postponed.
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