[Senate Report 117-120]
[From the U.S. Government Publishing Office]


                                                  Calendar No. 402

117th Congress}                                           { Report
                                 SENATE
  2d Session  }                                           { 117-120

======================================================================

                   DHS CONTRACT REPORTING ACT OF 2021

                               __________

                              R E P O R T

                                 OF THE

                   COMMITTEE ON HOMELAND SECURITY AND

                          GOVERNMENTAL AFFAIRS

                          UNITED STATES SENATE

                              to accompany

                               H.R. 4363

           TO ESTABLISH A DAILY PUBLIC REPORTING REQUIREMENT
FOR COVERED CONTRACT AWARDS OF THE DEPARTMENT OF HOMELAND SECURITY, AND 
                           FOR OTHER PURPOSES

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]


                  June 9, 2022.--Ordered to be printed
                  
        COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS

                   GARY C. PETERS, Michigan, Chairman
THOMAS R. CARPER, Delaware           ROB PORTMAN, Ohio
MAGGIE HASSAN, New Hampshire         RON JOHNSON, Wisconsin
KYRSTEN SINEMA, Arizona              RAND PAUL, Kentucky
JACKY ROSEN, Nevada                  JAMES LANKFORD, Oklahoma
ALEX PADILLA, California             MITT ROMNEY, Utah
JON OSSOFF, Georgia                  RICK SCOTT, Florida
                                     JOSH HAWLEY, Missouri

                   David M. Weinberg, Staff Director
                    Zachary I. Schram, Chief Counsel
                  Michelle M. Benecke, Senior Counsel
                Pamela Thiessen, Minority Staff Director
            Sam J. Mulopulos, Minority Deputy Staff Director
       Jeremy H. Hayes, Minority Senior Professional Staff Member
                     Laura W. Kilbride, Chief Clerk
                     
                     
                     
                     
                                                  Calendar No. 402

117th Congress}                                           { Report
                                 SENATE
  2d Session  }                                           { 117-120

======================================================================
 
                   DHS CONTRACT REPORTING ACT OF 2021                     
                     
                                 _______
                                

                  June 9, 2022.--Ordered to be printed

                                _______
                                

 Mr. Peters, from the Committee on Homeland Security and Governmental 
                    Affairs, submitted the following

                              R E P O R T

                        [To accompany H.R. 4363]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Homeland Security and Governmental 
Affairs, to which was referred the bill (H.R. 4363) to 
establish a daily public reporting requirement for covered 
contract awards of the Department of Homeland Security, and for 
other purposes, having considered the same, reports favorably 
thereon with an amendment (in the nature of a substitute) and 
recommends that the bill, as amended, do pass.

                                CONTENTS

                                                                   Page
  I. Purpose and Summary..............................................1
 II. Background and Need for the Legislation..........................2
III. Legislative History..............................................2
 IV. Section-by-Section Analysis of the Bill, as Reported.............2
  V. Evaluation of Regulatory Impact..................................3
 VI. Congressional Budget Office Cost Estimate........................3
VII. Changes in Existing Law Made by the Bill, as Reported............4

                         I. PURPOSE AND SUMMARY

    H.R. 4363, the DHS Contract Reporting Act of 2021, 
establishes a daily public reporting requirement for contract 
awards of the Department of Homeland Security (DHS) at or above 
$4 million, except for awards relating to classified matters. 
The report must be posted to a publicly available website and 
include key information such as contract type and value, name 
and address of vendor, and place of performance.
    The substitute amendment adopted by this committee improves 
consistency and efficiency in the reporting requirements by 
making changes to allow the data to be pulled from existing 
systems, such as the Federal Procurement Data System. The 
amendment also removes a subscription requirement that poses 
information technology and security challenges for DHS. It 
clarifies the exemption from reporting for those actions for 
which disclosure would compromise national security. Lastly, it 
adds a sunset provision of 5 years on the reporting 
requirements.

              II. BACKGROUND AND NEED FOR THE LEGISLATION

    Some DHS contract awards are announced through press 
releases, but many are not, and government websites that 
contain DHS award notices and spending information can be 
difficult to navigate and monitor.
    H.R. 4363 intends to improve transparency and oversight of 
DHS contract actions by requiring contracts of $4 million and 
above to be posted in an easily accessible format on a public-
facing DHS website.\1\ The daily report would include the 
contract type and amount, and certain other contract 
information.\2\ The legislation would also provide instructions 
on the handling of undefinitized contract actions and establish 
an exemption for national security reasons.\3\ It also makes 
certain adjustments to ensure DHS can efficiently fulfill the 
reporting requirements.
---------------------------------------------------------------------------
    \1\Committee on Homeland Security, DHS Contract Reporting Act of 
2021, (Sept. 14, 2021) (H. Rept. 117-121).
    \2\The report would include the contract action number, contract 
type, amount obligated, total contract value including options, 
description of work, number of proposals or bids received, name and 
address of vendor and whether it is a small business, primary place of 
performance, whether the award is multiyear, and the contracting office 
making the award.
    \3\If a covered contract award includes an undefinitized contract 
action, the report must include the estimated total contract value for 
the award and the amount obligated upon award. Once there is a 
definitized amount for the award, the report must be updated with the 
total contract value and amount obligated.
---------------------------------------------------------------------------

                        III. LEGISLATIVE HISTORY

    H.R. 4363 was introduced by Representative Diana 
Harshbarger (R-TN-1) on July 6, 2021, with Representative 
Elaine Luria (D-VA-2). Representatives John Katko (R-NY-24) and 
Elissa Slotkin (D-MI-8) joined as cosponsors on July 26, 2021 
and July 27, 2021, respectively. The bill was considered in the 
House of Representatives under suspension of the rules and 
passed the House by voice vote on September 29, 2021. The bill 
was received in the Senate on September 30, 2021 and was 
referred to the Homeland Security and Governmental Affairs 
Committee.
    The Committee considered H.R. 4363 at a business meeting on 
November 3, 2021. During the business meeting, a substitute 
amendment was offered by Chairman Peters and Ranking Member 
Portman, which was adopted by voice vote en bloc. The bill, as 
amended, was ordered reported favorably by voice vote en bloc 
with Senators Peters, Hassan, Sinema, Rosen, Padilla, Ossoff, 
Portman, Johnson, Lankford, Romney, Scott, and Hawley present.

        IV. SECTION-BY-SECTION ANALYSIS OF THE BILL, AS REPORTED

Section 1. Short title

    This section provides that the Act may be cited as the 
``DHS Contract Reporting Act of 2021.''

Sec. 2. Daily public report of covered contract awards

    Subsection (a) requires DHS to maintain and update daily a 
report of all covered contract awards. The information in the 
report shall include the contract action number, contract type, 
amount obligated, total contract value including options, 
description of work, number of proposals or bids received, name 
and address of vendor and whether it is a small business, 
primary place of performance, whether the award is multi-year, 
and the contracting office making the award.
    Subsection (b) provides instructions on handling of 
undefinitized contract actions and definitized amounts.
    Subsection (c) provides an exemption from reporting 
requirements for national security reasons by referencing 
Federal Acquisition Regulation 5.202(a)(1).
    Subsection (d) provides definitions of ``covered contract 
award;'' ``definitized amount;'' ``Department;'' ``Secretary;'' 
``small business;'' ``total contract value;'' and 
``undefinitized contract action.''
    Subsection (e) establishes a sunset on the reporting 
requirements in Section 2 of 5 years after the date of the 
Act's enactment.

                   V. EVALUATION OF REGULATORY IMPACT

    Pursuant to the requirements of paragraph 11(b) of rule 
XXVI of the Standing Rules of the Senate, the Committee has 
considered the regulatory impact of this bill and determined 
that the bill will have no regulatory impact within the meaning 
of the rules. The Committee agrees with the Congressional 
Budget Office's (CBO) statement that the bill contains no 
intergovernmental or private-sector mandates as defined in the 
Unfunded Mandates Reform Act (UMRA) and would impose no costs 
on state, local, or tribal governments.

             VI. CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

                                     U.S. Congress,
                               Congressional Budget Office,
                                  Washington, DC, January 26, 2022.
Hon. Gary Peters,
Chairman, Committee on Homeland Security and Governmental Affairs, U.S. 
        Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 4363, the DHS 
Contract Reporting Act of 2021.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Lindsay 
Wylie.
            Sincerely,
                                         Phillip L. Swagel,
                                                          Director.
    Enclosure.

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
    

    H.R. 4363 would require the Department of Homeland Security 
(DHS) to report daily on most department contract awards that 
have a value of more than $4 million, beginning six months 
after the bill's enactment. The reports would need to include 
information about each contract award, including the contract 
value, timeline, and description. The bill would require DHS to 
maintain this information on a public website and make updates 
no later than five business days after a new contract is 
authorized or an existing contract is modified.
    Based on information provided by DHS, CBO expects the 
agency would need two new employees to compile contract 
information and produce the reports and approximately $750,000 
each year for technology costs to maintain the website. Using 
historical patterns of spending for similar programs, CBO 
estimates the agency would spend about $1 million each year to 
implement the bill for a total of $5 million over the 2022-2026 
period; such spending would be subject to the availability of 
appropriated funds.
    The CBO staff contact for this estimate is Lindsay Wylie. 
The estimate was reviewed by Leo Lex, Deputy Director of Budget 
Analysis.

       VII. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

    This legislation would make no changes in existing law, 
within the meaning of clauses (a) and (b) of subparagraph 12 of 
rule XXVI of the Standing Rules of the Senate, because this 
legislation would not repeal or amend any provision of current 
law.

                                  [all]