[Congressional Record Volume 169, Number 123 (Tuesday, July 18, 2023)]
[Senate]
[Pages S3008-S3009]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 835. Mr. HAWLEY submitted an amendment intended to be proposed by 
him to the bill S. 2226, to authorize appropriations for fiscal year 
2024 for military activities of the Department of Defense, for military 
construction, and for defense activities of the Department of Energy, 
to prescribe military personnel strengths for such fiscal year, and for 
other purposes; which was ordered to lie on the table; as follows:

       At the end of title VIII, add the following:

                 Subtitle F--Time to Choose Act of 2023

     SEC. 871. SHORT TITLE.

       This subtitle may be cited as the ``Time to Choose Act of 
     2022''.

     SEC. 872. FINDINGS.

       Congress makes the following findings:
       (1) The Department of Defense and other agencies in the 
     United States Government regularly award contracts to firms 
     such as Deloitte, McKinsey & Company, and others who are 
     simultaneously providing consulting services to the 
     Government of the People's Republic of China and proxies or 
     affiliates thereof.
       (2) The provision of such consulting services by firms like 
     Deloitte, McKinsey & Company, and others to entities in the 
     People's Republic of China directly supports efforts by that 
     nation's government to generate economic and military power 
     that it can then use to undermine the economic and national 
     security of the American people, including through economic 
     coercion and by threatening or using military force against 
     us.
       (3) It is a conflict of interest for firms like Deloitte, 
     McKinsey & Company, and others to simultaneously aid in the 
     efforts of the Government of the People's Republic of China 
     to undermine the economic and national security of the United 
     States while they are simultaneously contracting with the 
     Department of Defense and other United States Government 
     agencies responsible for defending the United States from 
     foreign threats, above all from China.
       (4) Firms like Deloitte, McKinsey & Company, and others 
     should no longer be allowed to engage in such a conflict of 
     interest and should instead be required to choose between 
     aiding the efforts of the Government of the People's Republic 
     of China to harm the United States or helping the United 
     States Government to defend its citizens against such foreign 
     coercion.

     SEC. 873. PROHIBITION ON FEDERAL CONTRACTING WITH ENTITIES 
                   THAT ARE SIMULTANEOUSLY AIDING IN THE EFFORTS 
                   OF THE PEOPLE'S REPUBLIC OF CHINA TO HARM THE 
                   UNITED STATES.

       In order to end conflict of interests in Federal 
     contracting among consulting firms that simultaneously 
     contract with the United States Government and covered 
     foreign entities, the Federal Acquisition Regulatory Council 
     shall, not later than 180 days after the date of the 
     enactment of this Act, amend the Federal Acquisition 
     Regulation--
       (1) to require any entity that provides the services 
     described in the North American Industry Classification 
     System's Industry Group code 5416, prior to entering into a 
     Federal contract, to certify that neither it nor any of its 
     subsidiaries or affiliates hold a contract with one or more 
     covered foreign entities; and
       (2) to prohibit Federal contracts from being awarded to an 
     entity that provides the services described under the North 
     American Industry Classification System's Industry Group code 
     5416 if the entity or any of its subsidiaries or affiliates 
     are determined, based on the self-certification required 
     under paragraph (1) or other information, to be a contractor 
     of, or otherwise providing services to, a covered foreign 
     entity.

     SEC. 874. PENALTIES FOR FALSE INFORMATION ON CONTRACTING WITH 
                   THE PEOPLE'S REPUBLIC OF CHINA.

       (a) Termination, Suspension, and Debarment.--If the head of 
     an executive agency determines that a consulting firm 
     described in section 3 has knowingly submitted a false 
     certification or information on or after the

[[Page S3009]]

     date on which the Federal Acquisition Regulatory Council 
     amends the Federal Acquisition Regulation pursuant to such 
     section, the head of the executive agency shall terminate the 
     contract with the consulting firm and consider suspending or 
     debarring the firm from eligibility for future Federal 
     contracts in accordance with subpart 9.4 of the Federal 
     Acquisition Regulation.
       (b) False Claims Act.--A consulting firm described in 
     section 873 that, for the purposes of the False Claims Act, 
     intentionally hides or misrepresents one or more contracts 
     with covered foreign entities shall be subject to the 
     penalties and corrective actions described in the False 
     Claims Act, including liability for three times the amount of 
     damages which the United States Government sustains, 
     including funds or other resources expended on or in support 
     of the solicitation, selection, and performance of such 
     contracts.

     SEC. 875. DEFINITIONS.

       In this subtitle:
       (1) Covered foreign entity.--The term ``covered foreign 
     entity'' means--
       (A) a person, business trust, business association, 
     company, institution, government agency, university, 
     partnership, limited liability company, corporation, or any 
     other individual or organization that can legally enter into 
     contracts, own properties, or pay taxes on behalf of, the 
     Government of the People's Republic of China;
       (B) the Chinese Communist Party;
       (C) the People's Republic of China's United Front;
       (D) an entity owned or controlled by, or that performs 
     activities on behalf of, a person or entity described in 
     subparagraph (A), (B), or (C); and
       (E) an individual that is a member of the board of 
     directors, an executive officer, or a senior official of an 
     entity described in subparagraph (A), (B), (C), or (D).
       (2) Executive agency.--The term ``executive agency'' has 
     the meaning given the term in section 133 of title 41, United 
     States Code.
       (3) False claims act.--The term ``False Claims Act'' means 
     sections 3729 through 3733 of title 31, United States Code
       (4) North american industry classification system's 
     industry group code 5416.--The term ``North American Industry 
     Classification System's Industry Group code 5416'' refers to 
     the North American Industry Classification System category 
     that covers Management, Scientific, and Technical Consulting 
     Services as Industry Group code 5416, including industry 
     codes 54151, 541611, 541612, 541613, 541614, 541618, 54162, 
     541620, 54169, 541690.
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