108th CONGRESS
1st Session
H. R. 1218
To require contractors with the Federal Government to possess a satisfactory
record of integrity and business ethics.
IN THE HOUSE OF REPRESENTATIVES
March 11, 2003
Mr. WYNN introduced the following bill; which was referred to the Committee
on Government Reform, and in addition to the Committee on Armed Services, for
a period to be subsequently determined by the Speaker, in each case for consideration
of such provisions as fall within the jurisdiction of the committee concerned
A BILL
To require contractors with the Federal Government to possess a satisfactory
record of integrity and business ethics.
Be it enacted by the Senate and House of Representatives of the United States
of America in Congress assembled,
SECTION 1. REQUIREMENT FOR FEDERAL CONTRACTORS TO POSSESS SATISFACTORY RECORD
OF INTEGRITY AND BUSINESS ETHICS.
(a) DEFENSE CONTRACTORS- (1) Chapter 137 of title 10, United States Code, is
amended by inserting after section 2305a the following new section:
`Sec. 2305b. Contractor requirement for satisfactory record of integrity and
business ethics
`(a) IN GENERAL- No prospective contractor may be awarded a contract with an
agency under this title unless the contracting officer for the contract determines
that such prospective contractor has a satisfactory record of integrity and
business ethics, including a record of satisfactory compliance with the law
(including tax, labor and employment, environmental, antitrust, and consumer
protection laws).
`(b) INFORMATION TO BE CONSIDERED- In making a determination as to whether a
prospective contractor has a satisfactory record of integrity and business ethics,
a contracting officer--
`(1) shall consider all relevant credible information, but shall give the
greatest weight to any violations of law that have been adjudicated during
the 3-year period preceding the offer by the prospective contractor;
`(2) shall consider any administrative agreements entered into with the prospective
contractor if the prospective contractor has taken corrective action after
disclosing a violation of law, and may consider such a contractor to be a
responsible contractor if the contractor has corrected the conditions that
led to the misconduct;
`(3) shall consider failure to comply with the terms of an administrative
agreement to be a lack of integrity and business ethics under this section;
`(4) may consider other relevant information, such as civil or administrative
complaints or similar actions filed by or on behalf of a Federal agency, board,
or commission, if such action reflects an adjudicated determination by the
agency; and
`(5) shall consider the following in descending order of importance:
`(A) Convictions of and civil judgments rendered against the prospective
contractor for--
`(i) commission of fraud or a criminal offense in connection with obtaining,
attempting to obtain, or performing a Federal, State, or local contract
or subcontract;
`(ii) violation of Federal or State antitrust law relating to the submission
of offers; or
`(iii) commission of embezzlement, theft, forgery, bribery, falsification,
or destruction of records, making false statement, tax evasion, or receiving
stolen property.
`(B) Indictments for the offenses described in subparagraph (A).
`(C) With respect to tax, labor, employment, environmental, antitrust, or
consumer protection laws--
`(i) Federal or State felony convictions;
`(ii) adverse Federal court judgments in civil cases brought by the United
States;
`(iii) adverse decisions by a Federal administrative law judge, board,
or commission indicating violations of law; and
`(iv) Federal or State felony indictments.'.
(2) The table of sections at the beginning of such chapter is amended by inserting
after the item relating to section 2305a the following new item:
`2305b. Contractor requirement for satisfactory record of integrity and business
ethics.'.
(b) OTHER CONTRACTORS- (1) Title III of the Federal Property and Administrative
Services Act of 1949 (41 U.S.C. 251 et seq.) is amended by inserting after section
303L the following new section:
`SEC. 303M. CONTRACTOR REQUIREMENT FOR SATISFACTORY RECORD OF INTEGRITY AND
BUSINESS ETHICS.
`(a) IN GENERAL- No prospective contractor may be awarded a contract with an
agency unless the contracting officer for the contract determines that such
prospective contractor has a satisfactory record of integrity and business ethics,
including a record of satisfactory compliance with the law (including tax, labor
and employment, environmental, antitrust, and consumer protection laws).
`(b) INFORMATION TO BE CONSIDERED- In making a determination as to whether a
prospective contractor has a satisfactory record of integrity and business ethics,
a contracting officer--
`(1) shall consider all relevant credible information, but shall give the
greatest weight to any violations of law that have been adjudicated during
the 3-year period preceding the offer by the prospective contractor;
`(2) shall consider any administrative agreements entered into with the prospective
contractor if the prospective contractor has taken corrective action after
disclosing a violation of law, and may consider such a contractor to be a
responsible contractor if the contractor has corrected the conditions that
led to the misconduct;
`(3) shall consider failure to comply with the terms of an administrative
agreement to be a lack of integrity and business ethics under this section;
`(4) may consider other relevant information, such as civil or administrative
complaints or similar actions filed by or on behalf of a Federal agency, board,
or commission, if such action reflects an adjudicated determination by the
agency; and
`(5) shall consider the following in descending order of importance:
`(A) Convictions of and civil judgments rendered against the prospective
contractor for--
`(i) commission of fraud or a criminal offense in connection with obtaining,
attempting to obtain, or performing a Federal, State, or local contract
or subcontract;
`(ii) violation of Federal or State antitrust law relating to the submission
of offers; or
`(iii) commission of embezzlement, theft, forgery, bribery, falsification,
or destruction of records, making false statement, tax evasion, or receiving
stolen property.
`(B) Indictments for the offenses described in subparagraph (A).
`(C) With respect to tax, labor, employment, environmental, antitrust, or
consumer protection laws--
`(i) Federal or State felony convictions;
`(ii) adverse Federal court judgments in civil cases brought by the United
States;
`(iii) adverse decisions by a Federal administrative law judge, board,
or commission indicating violations of law; and
`(iv) Federal or State felony indictments.'.
(2) The table of sections at the beginning of such Act is amended by inserting
after the item relating to section 303L the following new item:
`303M. Contractor requirement for satisfactory record of integrity and business
ethics.'.
(c) EFFECTIVE DATE- The amendments made by this section shall apply with respect
to contracts for which solicitations are issued after the date of the enactment
of this Act.
END