[Senate Report 117-266]
[From the U.S. Government Publishing Office]


                                                     Calendar No. 665
117th Congress      }                           {         Report
                                 SENATE
 2d Session         }                           {         117-266
_______________________________________________________________________

                                     

             FEDERAL CONTRACTING FOR PEACE AND SECURITY ACT

                               __________

                              R E P O R T

                                 OF THE

                   COMMITTEE ON HOMELAND SECURITY AND

                          GOVERNMENTAL AFFAIRS

                          UNITED STATES SENATE

                              TO ACCOMPANY

                                S. 4930

             TO PROHIBIT FEDERAL PROCUREMENT FROM COMPANIES
      OPERATING IN THE RUSSIAN FEDERATION, AND FOR OTHER PURPOSES

              
              [GRAPHIC NOT AVAILABLE IN TIFF FORMAT]


               December 15, 2022.--Ordered to be printed
               
               		       __________
               		       
               		       
               	    U.S. GOVERNMENT PUBLISHING OFFICE	       
               
39-010			    WASHINGTON : 2023                     
               
               
        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. 665
117th Congress      }                           {         Report
                                 SENATE
 2d Session         }                           {         117-266

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



 
             FEDERAL CONTRACTING FOR PEACE AND SECURITY ACT

                                _______
                                

               December 15, 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 S. 4930]

    The Committee on Homeland Security and Governmental 
Affairs, to which was referred the bill (S. 4930), to prohibit 
Federal procurement from entities conducting business 
operations in the Russian Federation, 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..........................1
III. Legislative History..............................................2
 IV. Section-by-Section Analysis of the Bill, as Reported.............2
  V. Evaluation of Regulatory Impact..................................3
 VI. Changes in Existing Law Made by the Bill, as Reported............3

                         I. PURPOSE AND SUMMARY

    S. 4930, the Federal Contracting for Peace and Security 
Act, would prohibit the federal government from entering into, 
extending, or renewing contracts with companies that continue 
to do business in the Russian Federation (Russia) during its 
war of aggression against Ukraine, with some exceptions. The 
prohibition would be implemented through changes to the Federal 
Acquisition Regulation (FAR) to be promulgated not later than 
180 days after the date of the Act's enactment.

              II. BACKGROUND AND NEED FOR THE LEGISLATION

    The Federal Contracting for Peace and Security Act would 
establish that it is the policy of the United States government 
not to contract with companies that undermine United States 
national interests by continuing to conduct business in Russia 
during its ongoing war against Ukraine. The bill would require 
FAR changes to prohibit federal agencies from entering into, 
extending, or renewing contracts with companies that continue 
to conduct business in Russia, with exceptions for products and 
services purchased for the benefit of Ukraine or to meet 
humanitarian needs. The bill would provide an executive agency 
waiver authority in cases of national or public interest of the 
United States.
    Since the Russian invasion of Ukraine began, the death toll 
of Ukrainian civilians has surged and nearly 8 million refugees 
have fled Ukraine, causing a humanitarian crisis.\1\ In 
response, many companies around the world have withdrawn their 
operations from Russia. However, other companies have refused 
to suspend their business operations in Russia or have only 
partially scaled back their operations or investments--
including some United States federal contractors that benefit 
from taxpayer dollars.\2\
---------------------------------------------------------------------------
    \1\Operational Data Portal, Ukraine Refugee Situation (https://
data.unhcr.org/en/situations/ukraine) (accessed Nov. 18, 2022).
    \2\KSE Institute, Stop Doing Business with Russia (https://leave-
russia.org/?flt%5B147%5D%5Beq%5D%5B%5D=9057) (accessed Nov. 18, 2022).
---------------------------------------------------------------------------

                        III. LEGISLATIVE HISTORY

    Chairman Gary Peters (D-MI) introduced S. 4930, the Federal 
Contracting for Peace and Security Act, on September 22, 2022. 
The bill was referred to the Committee on Homeland Security and 
Governmental Affairs.
    The Committee considered S. 4930 at a business meeting on 
September 28, 2022. During the business meeting, a modified 
substitute amendment was offered by Chairman Peters. The 
substitute amendment as modified clarifies both the purpose of 
the prohibition on contracting with entities that continue to 
conduct business operations in Russia during its war against 
Ukraine and the exceptions to the prohibition and the waiver 
requirements for agencies. The modified substitute amendment 
was adopted by voice vote.
    The bill was ordered reported favorably by voice vote as 
amended by the Peters substitute amendment as modified, with 
Senators Peters, Hassan, Sinema, Rosen, Padilla, Ossoff, 
Portman, 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 
``Federal Contracting for Peace and Security Act.''

Sec. 2. Federal contracting for peace and security

    Subsection (a) of Section 2 identifies the purpose of the 
Act, to establish a policy of the federal government not to 
contract with entities that undermine United States interests 
by continuing to conduct business operations in the Russian 
Federation during its war with Ukraine.
    Subsection (b) of Section 2 establishes a contracting 
prohibition on executive agencies so that they may not enter 
into, extend, or renew a covered contract with an entity that 
continues to conduct business operations in Russia during the 
covered period.
    The subsection provides exceptions to the prohibition for 
good faith efforts of contractors to comply, licensed 
permissible operations, American diplomatic missions in Russia, 
and certain contracts for the benefit of Ukraine or for 
humanitarian purposes.
    The subsection also provides executive agencies with waiver 
authority for contracts certified to be in the national or 
public interest of the United States, and requires 
congressional notification prior to issuance of such waivers.
    The subsection requires the Director of the Office of 
Management and Budget, in consultation with the Administrator 
of General Services and the Secretary of Defense, to promulgate 
regulations to implement the prohibition within 180 days of 
enactment. These regulations must include a list of items and 
services that would be considered business operations subject 
to the prohibition, and a requirement for contractors to 
represent whether they use any items or engage in any 
activities falling under the prohibition.
    Lastly, the subsection provides definitions of 
``appropriate congressional committees,'' ``business 
operations'' with various inclusions and exceptions, ``covered 
contract,'' ``covered period,'' and ``executive agency.''

                   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. 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]