[House Report 110-49]
[From the U.S. Government Publishing Office]
110th Congress Report
HOUSE OF REPRESENTATIVES
1st Session 110-49
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PROVIDING FOR CONSIDERATION OF H.R. 1362--ACCOUNTABILITY IN CONTRACTING
ACT
_______
March 14, 2007.--Referred to the House Calendar and ordered to be
printed
_______
Ms. Castor, from the Committee on Rules, submitted the following
R E P O R T
[To accompany H. Res. 242]
The Committee on Rules, having had under consideration
House Resolution 242, by a non-record vote, report the same to
the House with the recommendation that the resolution be
adopted.
SUMMARY OF PROVISIONS OF THE RESOLUTION
The resolution provides for consideration of H.R. 1362 the
Accountability in Contracting Act under a structured rule. The
rule provides 60 minutes of general debate equally divided and
controlled by the chairman and ranking minority member of the
Committee on Oversight and Government Reform and 20 minutes of
general debate equally divided and controlled by the chairman
and ranking minority member of the Committee on Armed Services.
The rule waives all points of order against consideration
of the bill except clauses 9 and 10 of rule XXI. The rule
provides that in lieu of the amendments recommended by the
Committee on Oversight & Government Reform and the Committee on
Armed Services now printed in the bill, the amendment in the
nature of a substitute printed in Part A of this report shall
be considered as an original bill for the purpose of amendment.
All points of order except clauses 9 and 10 of rule XXI are
waived against the substitute and the substitute shall be
considered as read.
The rule makes in order only those amendments printed in
Part B of this report accompanying the resolution. The
amendments made in order may be offered only in the order
printed in the report, may be offered only by a Member
designated in the report, shall be considered as read, shall be
debatable for the time specified in the report equally divided
and controlled by the proponent and an opponent, shall not be
subject to amendment, and shall not be subject to a demand for
a division of the question in the House or in the Committee of
the Whole. All points of order against the amendments except
for clauses 9 and 10 of rule XXI are waived. Finally, the rule
provides one motion to recommit with or without instructions.
EXPLANATION OF WAIVERS
The waiver of all points of order against consideration of
the bill includes a waiver of clause 4(a) of rule XIII
(requiring a three-day layover of the committee report). The
waiver is necessary because the Committee on Armed Services
filed its report (H. Rept. 110-47, Part 2) with the House on
Wednesday, March 14, 2007 and the bill may be considered by the
House as early as Thursday, March 15, 2007.
COMMITTEE VOTES
The results of each record vote on an amendment or motion
to report, together with the names of those voting for and
against, are printed below:
Rules Committee record vote No. 67
Date: March 14, 2007.
Measure: H.R. 1362.
Motion by: Mr. Dreier.
Summary of motion: To report an open rule.
Results: Defeated 2-8.
Vote by Members: McGovern--Nay; Hastings (FL)--Nay;
Cardoza--Nay; Welch--Nay; Castor--Nay; Arcuri--Nay; Sutton--
Nay; Dreier--Yea; Sessions--Yea; Slaughter--Nay.
SUMMARY OF AMENDMENT IN THE NATURE OF A SUBSTITUTE CONSIDERED AS AN
ORIGINAL BILL
The amendment in the nature of a substitute is identical to
the text, as amended, of H.R. 1362 as ordered reported by the
Committee on Armed Services on March 13, 2007, with the
following exceptions:
Adds a provision to sec. 102 to clarify that statutory
preferences for contracts to disadvantaged minority contractors
and service disabled veterans, and in HUBZones, will not be
covered in the plan to reduce sole-source contracts.
Adds senior level personnel who participate personally and
substantially in a decision to award a contract to the current
revolving door restrictions for acquisition personnel.
Prevents such senior level personnel who enter government
service from the private sector from administering a contract
awarded to their former employer.
SUMMARY OF AMENDMENTS MADE ORDER
1. Matheson (UT): This amendment would provide Congress
with prior notice of any sole source contract expected to be
awarded to a foreign-owned company that is based in or has
majority operations in a country known to sponsor terrorist
activity, with the intent of allowing Congress to review and
comment on the proposed contract. (10 minutes)
2. Castle (DE): This amendment would require the Office of
Government Ethics to submit recommendations on requiring
government contractors and federally funded research and
development centers that advise the government to comply with
personal financial interest restrictions. (10 minutes)
PART A--TEXT OF AMENDMENT IN THE NATURE OF A SUBSTITUTE TO BE
CONSIDERED AS AN ORIGINAL BILL
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the
``Accountability in Contracting Act''.
(b) Table of Contents.--The table of contents for this Act is
as follows:
Sec. 1. Short title and table of contents.
TITLE I--IMPROVING THE QUALITY OF CONTRACTS
Sec. 101. Limitation on length of noncompetitive contracts.
Sec. 102. Minimizing sole-source contracts.
Sec. 103. Maximizing fixed-price procurement contracts.
TITLE II--INCREASING CONTRACT OVERSIGHT
Sec. 201. Public disclosure of justification and approval documents for
noncompetitive contracts.
Sec. 202. Disclosure of Government contractor audit findings.
Sec. 203. Study of acquisition workforce.
Sec. 204. Repeal of sunset of training fund.
TITLE III--PROMOTING INTEGRITY IN CONTRACTING
Sec. 301. Additional provisions relating to procurement officials.
TITLE I--IMPROVING THE QUALITY OF CONTRACTS
SEC. 101. LIMITATION ON LENGTH OF NONCOMPETITIVE CONTRACTS.
(a) Revision of FAR.--Not later than one year after the date
of the enactment of this Act, the Federal Acquisition
Regulation shall be revised to restrict the contract period of
any contract described in subsection (c) to the minimum
contract period necessary--
(1) to meet the urgent and compelling requirements of
the work to be performed under the contract; and
(2) to enter into another contract for the required
goods or services through the use of competitive
procedures.
(b) Contract Period.--The regulations promulgated under
subsection (a) shall require the contract period to not exceed
one year, unless the head of the executive agency concerned
determines that the Government would be seriously injured by
the limitation on the contract period.
(c) Covered Contracts.--This section applies to any contract
in an amount greater than $1,000,000 entered into by an
executive agency using procedures other than competitive
procedures pursuant to the exception provided in section
303(c)(2) of the Federal Property and Administrative Services
Act of 1949 (41 U.S.C. 253(c)(2)) or section 2304(c)(2) of
title 10, United States Code.
(d) Definitions.--In this section:
(1) The term ``executive agency'' has the meaning
provided in section 4(1) of the Office of Federal
Procurement Policy Act (41 U.S.C. 403(1)).
(2) The term ``head of the executive agency'' means
the head of an executive agency except that, in the
case of the Department of Defense, the term means--
(A) in the case of a military department, the
Secretary of the military department;
(B) in the case of a Defense Agency, the head
of the Defense Agency; and
(C) in the case of any part of the Department
of Defense other than a military department or
Defense Agency, the Under Secretary of Defense
for Acquisition, Technology, and Logistics.
SEC. 102. MINIMIZING SOLE-SOURCE CONTRACTS.
(a) Plans Required.--Subject to subsection (c), the head of
each executive agency covered by title III of the Federal
Property and Administrative Services Act of 1949 (41 U.S.C. 251
et seq.) or, in the case of the Department of Defense, the
Under Secretary of Defense for Acquisition, Technology, and
Logistics, shall develop and implement a plan to minimize, to
the maximum extent practicable, the use of contracts entered
into using procedures other than competitive procedures by the
agency or department concerned. The plan shall contain
measurable goals and shall be completed and submitted to the
Committee on Oversight and Government Reform of the House of
Representatives, the Committee on Homeland Security and
Governmental Affairs of the Senate, and the Committees on
Appropriations of the House of Representatives and the Senate
and, in the case of the Department of Defense and the
Department of Energy, the Committees on Armed Services of the
Senate and the House of Representatives, with a copy provided
to the Comptroller General, not later than 1 year after the
date of the enactment of this Act.
(b) Comptroller General Review.--The Comptroller General
shall review the plans provided under subsection (a) and submit
a report to Congress on the plans not later than 18 months
after the date of the enactment of this Act.
(c) Requirement Limited to Certain Agencies.--The requirement
of subsection (a) shall apply only to those agencies that
awarded contracts in a total amount of at least $1,000,000,000
in the fiscal year preceding the fiscal year in which the
report is submitted.
(d) Certain Contracts Excluded.--The following contracts
shall not be included in the plans developed and implemented
under subsection (a):
(1) Contracts entered into under section 8(a) of the
Small Business Act (15 U.S.C. 637(a)), in amounts less
than the amounts listed in paragraph (1)(D)(i)(II) of
that section.
(2) Contracts entered into under section 31 (15
U.S.C. 657a) of such Act, in amounts less than the
amounts listed in subsection (b)(2)(A)(ii) of that
section.
(3) Contracts entered into under section 36 of such
Act (15 U.S.C. 657f), in amounts less than the amounts
listed in subsection (a)(2) of that section.
SEC. 103. MAXIMIZING FIXED-PRICE PROCUREMENT CONTRACTS.
(a) Plans Required.--Subject to subsection (c), the head of
each executive agency covered by title III of the Federal
Property and Administrative Services Act of 1949 (41 U.S.C. 251
et seq.) or, in the case of the Department of Defense, the
Under Secretary of Defense for Acquisition, Technology, and
Logistics, shall develop and implement a plan to maximize, to
the fullest extent practicable, the use of fixed-price type
contracts for the procurement of goods and services by the
agency or department concerned. The plan shall contain
measurable goals and shall be completed and submitted to the
Committee on Oversight and Government Reform of the House of
Representatives, the Committee on Homeland Security and
Governmental Affairs of the Senate, and the Committees on
Appropriations of the House of Representatives and the Senate
and, in the case of the Department of Defense and the
Department of Energy, the Committees on Armed Services of the
Senate and the House of Representatives, with a copy provided
to the Comptroller General, not later than 1 year after the
date of the enactment of this Act.
(b) Comptroller General Review.--The Comptroller General
shall review the plans provided under subsection (a) and submit
a report to Congress on the plans not later than 18 months
after the date of the enactment of this Act.
(c) Requirement Limited to Certain Agencies.--The requirement
of subsection (a) shall apply only to those agencies that
awarded contracts in a total amount of at least $1,000,000,000
in the fiscal year preceding the fiscal year in which the
report is submitted.
TITLE II--INCREASING CONTRACT OVERSIGHT
SEC. 201. PUBLIC DISCLOSURE OF JUSTIFICATION AND APPROVAL DOCUMENTS FOR
NONCOMPETITIVE CONTRACTS.
(a) Civilian Agency Contracts.--
(1) In general.--Section 303 of the Federal Property
and Administrative Services Act of 1949 (41 U.S.C. 253)
is amended by adding at the end the following new
subsection:
``(j)(1)(A) Except as provided in subparagraph (B), in the
case of a procurement permitted by subsection (c), the head of
an executive agency shall make publicly available, within 14
days after the award of the contract, the documents containing
the justification and approval required by subsection (f)(1)
with respect to the procurement.
``(B) In the case of a procurement permitted by subsection
(c)(2), subparagraph (A) shall be applied by substituting `30
days' for `14 days'.
``(2) The documents shall be made available on the website of
the agency and through the Federal Procurement Data System.
``(3) This subsection does not require the public
availability of information that is exempt from public
disclosure under section 552(b) of title 5, United States
Code.''.
(2) Conforming amendment.--Section 303(f) of such Act
is amended--
(A) by striking paragraph (4); and
(B) by redesignating paragraph (5) as
paragraph (4).
(b) Defense Agency Contracts.--
(1) In general.--Section 2304 of title 10, United
States Code, is amended by adding at the end the
following new subsection:
``(l)(1)(A) Except as provided in subparagraph (B), in the
case of a procurement permitted by subsection (c), the head of
an agency shall make publicly available, within 14 days after
the award of the contract, the documents containing the
justification and approval required by subsection (f)(1) with
respect to the procurement.
``(B) In the case of a procurement permitted by subsection
(c)(2), subparagraph (A) shall be applied by substituting `30
days' for `14 days'.
``(2) The documents shall be made available on the website of
the agency and through the Federal Procurement Data System.
``(3) This subsection does not require the public
availability of information that is exempt from public
disclosure under section 552(b) of title 5.''.
(2) Conforming amendment.--Section 2304(f) of such
title is amended--
(A) by striking paragraph (4); and
(B) by redesignating paragraphs (5) and (6)
as paragraphs (4) and (5), respectively.
SEC. 202. DISCLOSURE OF GOVERNMENT CONTRACTOR AUDIT FINDINGS.
(a) Quarterly Report to Congress.--
(1) The head of each Federal agency or department or,
in the case of the Department of Defense, the Under
Secretary of Defense for Acquisition, Technology, and
Logistics, shall submit to the chairman and ranking
member of each committee specified in paragraph (2) on
a quarterly basis a report that includes the following:
(A) A list of completed audits performed by
such agency or department issued during the
applicable quarter that describe contractor
costs in excess of $10,000,000 that have been
identified as unjustified, unsupported,
questioned, or unreasonable under any contract,
task or delivery order, or subcontract.
(B) The specific amounts of costs identified
as unjustified, unsupported, questioned, or
unreasonable and the percentage of their total
value of the contract, task or delivery order,
or subcontract.
(C) A list of completed audits performed by
such agency or department issued during the
applicable quarter that identify material
deficiencies in the performance of any
contractor or in any business system of any
contractor under any contract, task or delivery
order, or subcontract.
(2) The report described in paragraph (1) shall be
submitted to--
(A) the Committee on Oversight and Government
Reform of the House of Representatives;
(B) the Committee on Homeland Security and
Governmental Affairs of the Senate;
(C) the Committees on Appropriations of the
House of Representatives and the Senate;
(D) in the case of reports from the
Department of Defense or the Department of
Energy, the Committees on Armed Services of the
Senate and the House of Representatives; and
(E) the committees of primary jurisdiction
over the agency or department submitting the
report.
(3) Paragraph (1) shall not apply to an agency or
department with respect to a calendar quarter if no
audits described in paragraph (1) were issued during
that quarter.
(b) Submission of Individual Audits.--
(1) The head of each Federal agency or department
shall provide, within 14 days after a request in
writing by the chairman or ranking member of any
committee listed in paragraph (2), a full and
unredacted copy of any audit described in subsection
(a)(1). Such copy shall include an identification of
information in the audit exempt from public disclosure
under section 552(b) of title 5, United States Code.
(2) The committees listed in this paragraph are the
following:
(A) The Committee on Oversight and Government
Reform of the House of Representatives.
(B) The Committee on Homeland Security and
Governmental Affairs of the Senate.
(C) The Committees on Appropriations of the
House of Representatives and the Senate.
(D) In the case of the Department of Defense
or the Department of Energy, the Committees on
Armed Services of the Senate and House of
Representatives.
(E) The committees of primary jurisdiction
over the agency or department to which the
request is made.
SEC. 203. STUDY OF ACQUISITION WORKFORCE.
(a) Requirement for Study.--The Administrator for Federal
Procurement Policy shall conduct a study of the composition,
scope, and functions of the Government-wide acquisition
workforce and develop a comprehensive definition of, and method
of measuring the size of, such workforce.
(b) Report.--Not later than 1 year after the date of the
enactment of this Act, the Administrator shall submit to the
relevant congressional committees a report on the results of
the study required by subsection (a), with such findings and
recommendations as the Administrator determines appropriate.
SEC. 204. REPEAL OF SUNSET OF TRAINING FUND.
Subparagraph (H) of section 37(h)(3) of the Office of Federal
Procurement Policy Act (41 U.S.C. 433(h)(3)) is repealed.
TITLE III--PROMOTING INTEGRITY IN CONTRACTING
SEC. 301. ADDITIONAL PROVISIONS RELATING TO PROCUREMENT OFFICIALS.
(a) Elimination of Loopholes That Allow Former Federal
Officials to Accept Compensation From Contractors or Related
Entities.--Section 27(d) of the Office of Federal Procurement
Policy Act (41 U.S.C. 423(d)) is amended--
(1) in paragraph (1)--
(A) by striking ``or consultant'' and
inserting ``consultant, lawyer, or lobbyist'';
and
(B) in subparagraph (C), by striking
``Federal
agency--'' and inserting ``Federal agency or
partici-
pated personally and substantially at a senior
personnel level in--''
(2) by amending paragraph (2) to read as follows:
``(2) Paragraph (1) shall not prohibit a former official of a
Federal agency from accepting compensation from any division or
affiliate of a contractor that does not produce the same or
similar products or services as the entity of the contractor
that is responsible for the contract referred to in
subparagraph (A), (B), or (C) of such paragraph if the agency's
designated ethics officer determines that the former official's
acceptance of compensation would not damage public confidence
in the integrity of the procurement process.''.
(b) Requirement for Federal Procurement Officers to Disclose
Job Offers Made on Behalf of Relatives.--Section 27(c)(1) of
such Act (41 U.S.C. 423(c)(1)) is amended by inserting after
``that official'' the following: ``or for a relative of that
official (as defined in section 3110 of title 5, United States
Code)''.
(c) Requirement on Award of Government Contracts to Former
Employers.--Section 27 of such Act (41 U.S.C. 423) is amended
by adding at the end the following new subsection:
``(i) Prohibition on Involvement by Certain Former Contractor
Employees in Procurements.--An employee of the Federal
Government who is a former employee of a contractor with the
Federal Government shall not be personally and substantially
involved with any award of a contract to the employee's former
employer, or in the administration of such contract at a senior
personnel level, for the one-year period beginning on the date
on which the employee leaves the employment of the contractor
unless the employee has received a waiver from the agency's
designated ethics officer. In determining whether to issue a
waiver, the designated ethics officer shall take into account
the agency's need for the involvement of the employee and the
impact a waiver would have on public confidence in the
integrity of the procurement process.''.
(d) Regulations.--Section 27 of such Act (41 U.S.C. 423) is
further amended by adding at the end the following new
subsection:
``(j) Regulations.--The Administrator, in consultation with
the Director of the Office of Government Ethics, shall--
``(1) promulgate regulations to carry out and ensure
the enforcement of this section; and
``(2) monitor and investigate individual and agency
compliance with this section.''.
(e) Effective Date.--The amendments made by this section
shall take effect on the date of the enactment of this Act.
PART B--TEXT OF AMENDMENTS MADE IN ORDER UNDER THE RULE
1. An Amendment To Be Offered by Representative Matheson of Utah, or
His Designee, Debatable for 10 Minutes
At the end of title II, add the following new section:
SEC. 2----. NOTICE TO CONGRESS OF NONCOMPETITIVE CONTRACTS AWARDED TO
FOREIGN-OWNED COMPANIES IN COUNTRIES SPONSORING
TERRORISM.
(a) Notice to Congress Required.--If a contract is expected
to be awarded by a department or agency of the Federal
Government without the use of competitive procedures to a
foreign-owned company that is based or has majority operations
in a country described in subsection (b), the department or
agency shall notify the appropriate congressional committees at
least 30 days before awarding the contract, for purposes of
providing Congress time to review the proposed contract and
provide comments to the department or agency.
(b) Foreign Countries Described.--A country described in
this subsection is a country the government of which the
Secretary of State has determined, for purposes of section 6(j)
of Export Administration Act of 1979, section 620A of the
Foreign Assistance Act of 1961, section 40 of the Arms Export
Control Act, or any other provision of law, is a government
that has repeatedly provided support for acts of international
terrorism.
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2. An Amendment To Be Offered by Representative Castle of Delaware, or
His Designee, Debatable for 10 Minutes
Add at the end of title III the following:
SEC. 302. REPORT TO CONGRESS.
(a) Report.--Not later than 180 days after the date of the
enactment of this Act, the Director of the Office of Government
Ethics shall submit a report to Congress that contains the
Director's recommendations on requiring Government contractors
that advise one or more Federal agencies on procurement policy,
and requiring federally funded research and development
centers, to comply with restrictions relating to personal
financial interests, such as those that apply to Federal
employees.
(b) Definition.--In this section--
(1) The term ``Government contractor'' means any
person (other than a Federal agency) with which a
Federal agency has entered into a contract to acquire
goods or services.
(2) The term ``Federal agency'' means--
(A) any executive department or independent
establishment in the executive branch of the
Government, including any wholly owned
Government corporation; and
(B) any establishment in the legislative or
judicial branch of the Government (except the
Senate, the House of Representatives, and the
Architect of the Capitol and any activities
under the Architect's direction).
(3) The term ``federally funded research and
development center'' means a federally funded research
and development center as identified by the National
Science Foundation in accordance with the Federal
Acquisition Regulation.