109th CONGRESS
1st Session
H. R. 3838
To establish the Independent Commission to Prevent Fraud and Abuse
in the Response to Hurricane Katrina, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
September 20, 2005
Mr. WAXMAN (for himself, Ms. PELOSI, Mr. HOYER, Mr. OBEY, Mr. THOMPSON of
Mississippi, Mr. DINGELL, Mr. CONYERS, Mr. RANGEL, Mr. FRANK of Massachusetts,
Mr. LANTOS, Ms. SLAUGHTER, Ms. DELAURO, Mr. EMANUEL, Mrs. MALONEY, Mr. OWENS,
Mr. CUMMINGS, Ms. NORTON, Ms. WATSON, and Mr. LYNCH) introduced the following
bill; which was referred to the Committee on Government Reform, and in addition
to the Committees on Transportation and Infrastructure and Energy and Commerce,
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 establish the Independent Commission to Prevent Fraud and Abuse
in the Response to Hurricane Katrina, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the `Hurricane Katrina Accountability and Contracting
Reform Act'.
SEC. 2. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
Sec. 2. Table of contents.
TITLE I--INDEPENDENT COMMISSION TO PREVENT FRAUD AND ABUSE IN THE RESPONSE
TO HURRICANE KATRINA
Sec. 101. Establishment of Anti-Fraud Commission.
Sec. 103. Composition of Commission.
Sec. 104. Powers of Commission.
Sec. 105. Staff of Commission.
Sec. 106. Compensation and travel expenses.
Sec. 107. Security clearances for Commission members and staff.
Sec. 108. Reports of Commission; termination.
TITLE II--CLEAN CONTRACTING FOR HURRICANE KATRINA RELIEF AND RECOVERY
Subtitle A--Transparency and Accountability
Sec. 201. Public availability of contract award information.
Sec. 202. Disclosure of Government contractor overcharges.
Sec. 203. Provision of information to Congress.
Subtitle B--Prevention of Abusive Contracting Practices
Sec. 211. Prohibition on award of monopoly contracts.
Sec. 212. Competition in multiple award contracts.
Sec. 213. Prohibition on contractor conflicts of interest.
Sec. 214. Closing the revolving door.
Sec. 215. Repeal of $250,000 micropurchase threshold.
Subtitle C--General Provisions
Sec. 221. Definition of Hurricane Katrina-related contract.
TITLE I--INDEPENDENT COMMISSION TO PREVENT FRAUD AND ABUSE IN THE RESPONSE
TO HURRICANE KATRINA
SEC. 101. ESTABLISHMENT OF ANTI-FRAUD COMMISSION.
There is established in the legislative branch the Independent Commission
to Prevent Fraud and Abuse in the Response to Hurricane Katrina (in this title
referred to as the `Commission').
SEC. 102. DUTIES.
(a) Investigation- The Commission shall conduct a full, complete, independent,
and impartial investigation of--
(1) Federal Government contracting relating to Hurricane Katrina recovery,
relief, and reconstruction, to prevent waste, fraud, and abuse; and
(2) allegations of price gouging or profiteering relating to Hurricane Katrina
recovery, relief, or reconstruction.
(b) Specific Requirements-
(1) The investigation of the matters described in subsection (a)(1) shall
include, at a minimum, the following:
(A) Review of how Federal contracts, subcontracts, grants, and cooperative
agreements relating to Hurricane Katrina recovery, relief, and reconstruction
are awarded, to determine whether the Federal Government has complied
with competition requirements and utilized the appropriate contract type.
(B) Review of whether the awards of Federal contracts, subcontracts, grants,
and cooperative agreements relating to Hurricane Katrina recovery, relief,
and reconstruction are based on merit as opposed to relationships between
awardees and Federal Government officials.
(C) Real-time review of spending under Federal contracts, subcontracts,
grants, and cooperative agreements for Hurricane Katrina recovery, relief,
and reconstruction to determine whether wasteful spending, poor contract
management, or other abuses are occurring.
(D) Review of auditing and other oversight procedures to ensure accountability
of contractors, subcontractors, and government officials.
(E) Review of the inclusion and utilization of small and local businesses
through contracts, subcontracts, or otherwise.
(F) Review of Federal acquisitions personnel overseeing contracts, subcontracts,
grants, and cooperative agreements for Hurricane Katrina recovery, relief,
and reconstruction to assess whether there are sufficient Federal acquisitions
personnel with appropriate qualifications and training for the hurricane
response effort.
(G) Review of transactions relating to Hurricane Katrina relief, recovery,
and reconstruction that are paid for by government issued credit cards.
(2) The investigation of the matters described in subsection (a)(2) shall
include, at a minimum, a review of activity in the petroleum and natural
gas markets in the aftermath of the hurricane and opportunities for market
manipulation or price gouging at each point of commerce in bringing petroleum
and natural gas to market, including exploration, development, production,
refining, distribution, commodities transactions, and retail sales.
(c) Assessment, Analysis, and Evaluation- During the course of its investigation,
the Commission shall assess, analyze, and evaluate relevant persons, policies,
procedures, contracts, subcontracts, grants, cooperative agreements, reports,
and events, including, at a minimum, the following:
(1) The Department of Homeland Security, including the Federal Emergency
Management Agency.
(2) The Department of Defense.
(3) The Army Corps of Engineers.
(4) Other Federal agencies that award or oversee contracts, subcontracts,
grants, or cooperative agreements for Hurricane Katrina recovery, relief,
or reconstruction.
(5) The approval process for contracts, subcontracts, grants, and cooperative
agreements in the Federal agencies listed in paragraphs (1) through (4).
(6) Communications between private contractors, their representatives, and
Federal Government officials concerning potential or existing contracts
or subcontracts for Hurricane Katrina relief, recovery, or reconstruction.
(7) Actual cost figures for transactions relating to contracts, subcontracts,
grants, and cooperative agreements or paid for by government issued credit
cards, for Hurricane Katrina relief, recovery, or reconstruction.
(8) Pricing policies of individual companies in the petroleum and natural
gas industries, actual cost figures for fuel and natural gas transactions,
and information regarding decisions by companies to reduce or expand refining
capacity.
SEC. 103. COMPOSITION OF COMMISSION.
(a) Members- The Commission shall be composed of 10 members, of whom--
(1) 1 member shall be appointed by the President;
(2) 1 member shall be jointly appointed by the minority leader of the Senate
and the minority leader of the House of Representatives;
(3) 2 members shall be appointed by the majority leader of the Senate;
(4) 2 members shall be appointed by the Speaker of the House of Representatives;
(5) 2 members shall be appointed by the minority leader of the Senate; and
(6) 2 members shall be appointed by the minority leader of the House of
Representatives.
(b) Qualifications; Initial Meeting-
(1) NONGOVERNMENTAL APPOINTEES- An individual appointed to the Commission
may not be an officer or employee of the Federal Government or any State
or local government.
(2) OTHER QUALIFICATIONS- Individuals appointed to the Commission should
be prominent United States citizens, with national recognition and significant
depth of experience in such professions as governmental service, public
administration, government contracting, economics, emergency response, and
energy policy.
(3) DEADLINE FOR APPOINTMENT- All members of the Commission shall be appointed
within 21 days following the date of the enactment of this Act.
(4) CHAIRMAN AND VICE CHAIRMAN- The chairman and vice chairman of the Commission
shall be elected by a majority vote of the members.
(5) MEETINGS- The Commission shall meet and begin the operations of the
Commission as soon as practicable. After its initial meeting, the Commission
shall meet upon the call of the chairman or a majority of its members.
(c) Quorum; Vacancies- Six members of the Commission shall constitute a quorum.
Any vacancy in the Commission shall not affect its powers, but shall be filled
in the same manner in which the original appointment was made.
(d) Conflicts of Interest-
(1) FINANCIAL DISCLOSURE- Each member appointed to the Commission shall
submit a financial disclosure report pursuant to the Ethics in Government
Act of 1978, notwithstanding the minimum required rate of compensation or
time period employed.
(2) INDEPENDENCE FROM SUBJECTS OF INVESTIGATIONS- Each member appointed
to the Commission shall be independent of any agency, individual, or institution
that may be the subject of investigation by the Commission.
SEC. 104. POWERS OF COMMISSION.
(1) HEARINGS AND EVIDENCE- The Commission or, on the authority of the Commission,
any subcommittee or member thereof, may, for the purpose of carrying out
this title--
(A) hold such hearings and sit and act at such times and places, take
such testimony, receive such evidence, administer such oaths; and
(B) subject to paragraph (2)(A), require, by subpoena or otherwise, the
attendance and testimony of such witnesses and the production of such
books, records, correspondence, memoranda, papers, and documents,
as the Commission or such designated subcommittee or designated member may
determine advisable.
(i) IN GENERAL- A subpoena may be issued under this subsection only--
(I) by the agreement of the chairman and the vice chairman; or
(II) by the affirmative vote of 6 members of the Commission.
(ii) SIGNATURE- Subject to clause (i), subpoenas issued under this subsection
may be issued under the signature of the chairman or any member designated
by a majority of the Commission, and may be served by any person designated
by the chairman or by a member designated by a majority of the Commission.
(i) IN GENERAL- In the case of contumacy or failure to obey a subpoena
issued under this subsection, the United States district court for the
judicial district in which the subpoenaed person resides, is served,
or may be found, or where the subpoena is returnable, may issue an order
requiring such person to appear at any designated place to testify or
to produce documentary or other evidence. Any failure to obey the order
of the court may be punished by the court as a contempt of that court.
(ii) ADDITIONAL ENFORCEMENT- In the case of any failure of any witness
to comply with any subpoena or to testify when summoned under authority
of this subsection, the Commission may, by majority vote, certify a
statement of fact constituting such failure to the appropriate United
States attorney, who may bring the matter before the grand jury for
its action, under the same statutory authority and procedures as if
the United States attorney had received a certification under sections
102 through 104 of the Revised Statutes of the United States (2 U.S.C.
192 through 194).
(3) SCOPE- In carrying out its duties under this Act, the Commission may
examine the actions and representations of the current Administration as
well as prior Administrations.
(b) Contracting- The Commission may, to such extent and in such amounts as
are provided in appropriation Acts, enter into contracts to enable the Commission
to discharge its duties of this Act.
(c) Information From Federal Agencies-
(1) IN GENERAL- The Commission may secure directly from any executive department,
bureau, agency, board, commission, office, independent establishment, or
instrumentality of the Federal Government, information, suggestions, estimates,
and statistics for the purposes of this Act. Each department, bureau, agency,
board, commission, office, independent establishment, or instrumentality
shall furnish such information, suggestions, estimates, and statistics directly
to the Commission, upon request made by the chairman, the chairman of any
subcommittee created by a majority of the Commission, or any member designated
by a majority of the Commission.
(2) RECEIPT, HANDLING, STORAGE, AND DISSEMINATION- Information shall be
received, handled, stored, and disseminated by members of the Commission
and its staff consistent with all applicable statutes, regulations, and
Executive orders.
(d) Assistance From Federal Agencies-
(1) GENERAL SERVICES ADMINISTRATION- The Administrator of General Services
shall provide to the Commission on a reimbursable basis administrative support
and other services for the performance of the Commission's functions.
(2) OTHER DEPARTMENTS AND AGENCIES- In addition to the assistance prescribed
in paragraph (1), departments and agencies of the United States may provide
to the Commission such services, funds, facilities, staff, and other support
services as they may determine advisable and as may be authorized by law.
(e) Gifts- The Commission may accept, use, and dispose of gifts or donations
of services or property.
(f) Postal Services- The Commission may use the United States mails in the
same manner and under the same conditions as departments and agencies of the
United States.
SEC. 105. STAFF OF COMMISSION.
(1) APPOINTMENT AND COMPENSATION- The chairman and the vice chairman jointly,
in accordance with rules agreed upon by the Commission, may appoint and
fix the compensation of a staff director and such other personnel as may
be necessary to enable the Commission to carry out its functions, without
regard to the provisions of title 5, United States Code, governing appointments
in the competitive service, and without regard to the provisions of chapter
51 and subchapter III of chapter 53 of such title relating to classification
and General Schedule pay rates, except that no rate of pay fixed under this
subsection may exceed the equivalent of that payable for a position at level
V of the Executive Schedule under section 5316 of title 5, United States
Code.
(2) PERSONNEL AS FEDERAL EMPLOYEES-
(A) IN GENERAL- The staff director and any personnel of the Commission
who are employees shall be employees under section 2105 of title 5, United
States Code, for purposes of chapters 63, 81, 83, 84, 85, 87, 89, and
90 of that title.
(B) MEMBERS OF COMMISSION- Subparagraph (A) shall not be construed to
apply to members of the Commission.
(b) Detailees- Any Federal Government employee may be detailed to the Commission
without reimbursement from the Commission, and such detailee shall retain
the rights, status, and privileges of his or her regular employment without
interruption.
(c) Consultant Services- The Commission is authorized to procure the services
of experts and consultants in accordance with section 3109 of title 5, United
States Code, but at rates not to exceed the daily rate paid a person occupying
a position at level IV of the Executive Schedule under section 5315 of title
5, United States Code.
SEC. 106. COMPENSATION AND TRAVEL EXPENSES.
(a) Compensation- Each member of the Commission may be compensated at a rate
not to exceed the daily equivalent of the annual rate of basic pay in effect
for a position at level IV of the Executive Schedule under section 5315 of
title 5, United States Code, for each day during which that member is engaged
in the actual performance of the duties of the Commission.
(b) Travel Expenses- While away from their homes or regular places of business
in the performance of services for the Commission, members of the Commission
shall be allowed travel expenses, including per diem in lieu of subsistence,
in the same manner as persons employed intermittently in the Government service
are allowed expenses under section 5703(b) of title 5, United States Code.
SEC. 107. SECURITY CLEARANCES FOR COMMISSION MEMBERS AND STAFF.
(a) In General- Subject to subsection (b), the appropriate Federal agencies
or departments shall cooperate with the Commission in expeditiously providing
to the Commission members and staff appropriate security clearances to the
extent possible pursuant to existing procedures and requirements.
(b) Exception- No person shall be provided with access to classified information
under this title without the appropriate required security clearance access.
SEC. 108. REPORTS OF COMMISSION; TERMINATION.
(a) Evidence of Abuses- The Commission shall report to Congress and to the
President any evidence of waste, fraud, market manipulation, or other abuses
it finds, in a timely and ongoing manner.
(b) Interim Reports- The Commission may submit to Congress and the President
interim reports containing such findings, conclusions, and recommendations
for corrective measures as have been agreed to by a majority of Commission
members.
(c) Final Report- Prior to the termination of the Commission, the Commission
shall submit to Congress and the President a final report containing such
findings, conclusions, and recommendations for corrective measures as have
been agreed to by a majority of Commission members.
SEC. 109. TERMINATION.
The Commission, and all the authorities of this Act, shall terminate 10 months
after 80 percent of the funds appropriated by the 109th Congress for Hurricane
Katrina recovery, relief, and reconstruction have been expended.
SEC. 110. FUNDING.
(a) Authorization of Appropriations- There is authorized to be appropriated
funds not to exceed $5,000,000 for purposes of the activities of the Commission
under this Act.
(b) Duration of Availability- Amounts made available to the Commission under
subsection (a) shall remain available until the termination of the Commission.
TITLE II--CLEAN CONTRACTING FOR HURRICANE KATRINA RELIEF AND RECOVERY
Subtitle A--Transparency and Accountability
SEC. 201. PUBLIC AVAILABILITY OF CONTRACT AWARD INFORMATION.
(a) Requirement- Not later than 14 days after the award of a Hurricane Katrina-related
contract by an executive agency, the head of the executive agency shall make
publicly available, including by posting on the Internet in a searchable database,
the following information with respect to the contract:
(1) The name and address of the contractor.
(2) The date of award of the contract.
(3) The number of offers received in response to the solicitation.
(4) The total amount of the contract.
(6) The items, quantities, and any stated unit price of items or services
to be procured under the contract.
(7) With respect to a procurement carried out using procedures other than
competitive procedures--
(A) the authority for using such procedures under section 303(c) of title
III of the Federal Property and Administrative Services Act of 1949 (41
U.S.C.253(c)) or section 2304(c) of title 10, United States Code; and
(B) the number of sources from which bids or proposals were solicited.
(8) The general reasons for selecting the contractor.
(b) Definition- In this section, the term `executive agency' has the meaning
provided in section 4 of the Office of Federal Procurement Policy Act (41
U.S.C. 403).
(c) Effective Date- This section shall apply to contracts entered into more
than 90 days after the date of the enactment of this Act.
SEC. 202. DISCLOSURE OF GOVERNMENT CONTRACTOR OVERCHARGES.
(a) Quarterly Report to Congress- The head of each Federal agency or department
shall submit to the chairman and ranking member of each committee described
in subsection (b) on a quarterly basis a report that includes the following:
(1) A list of audits or other reports issued during the applicable quarter
that describe contractor costs in excess of $1,000,000 that have been identified
as unjustified, unsupported, questioned, or unreasonable under any Hurricane
Katrina-related contract, task or delivery order under a Hurricane Katrina-related
task or delivery order contract, or subcontract under a Hurricane Katrina-related
contract.
(2) 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.
(3) A list of audits or other reports issued during the applicable quarter
that identify significant or substantial deficiencies in any business system
of any contractor under any such contract, task or delivery order, or subcontract.
(b) Committees- The report described in subsection (a) shall be submitted
to the Committee on Government Reform of the House of Representatives, the
Committee on Homeland Security and Governmental Affairs of the Senate, and
other committees of jurisdiction.
SEC. 203. PROVISION OF INFORMATION TO CONGRESS.
(a) Provision of Information to Congress- Upon request of the chairman or
ranking member of a committee described in subsection (b), the head of an
executive agency shall provide, with respect to any Hurricane Katrina-related
contract or task or delivery order under a Hurricane Katrina-related task
or delivery order contract entered into by the agency, within 14 days after
receipt of the request, unredacted copies of any documents relating to the
contract or task or delivery order, including any documents required to be
maintained in the contracting office contract file, the contract administration
office contract file, and the paying office contract file pursuant to subpart
4.8 of the Federal Acquisition Regulation, including--
(1) copies of the contract and all modifications;
(2) orders issued under the contract;
(3) justifications and approvals;
(4) any government estimate of contract price;
(5) source selection documentation;
(6) cost or price analysis;
(8) justification for type of contract;
(9) authority for deviations from regulations, statutory requirements, or
other restrictions;
(10) bills, invoices, vouchers, and supporting documents; and
(11) records of payments or receipts.
(b) Committees- The committees referred to in subsection (a) are the following:
(1) The Committee on Homeland Security and Governmental Affairs of the Senate
and the Committee on Government Reform of the House of Representatives.
(2) The Committees on Appropriations of the Senate and House of Representatives.
(3) Each committee that the head of the executive agency determines has
legislative jurisdiction for the operations of the department or agency
to which the contract, task or delivery order, or other information referred
to in subsection (a) relates.
Subtitle B--Prevention of Abusive Contracting Practices
SEC. 211. PROHIBITION ON AWARD OF MONOPOLY CONTRACTS.
(a) Prohibition- The Federal Government may not enter into a Hurricane Katrina-related
contract if the contract is a monopoly contract.
(b) Monopoly Contract- In this section, the term `monopoly contract' means
a task or delivery order contract (as defined in section 303K of the Federal
Property and Administrative Services Act of 1949 (41 U.S.C. 253k) or section
2304d of title 10, United States Code) that is a Hurricane Katrina-related
contract in an amount estimated to exceed $10,000,000 (including all options)
awarded to a single contractor.
(1) IN GENERAL- Notwithstanding subsection (a), a monopoly contract may
be awarded if--
(A) the head of the agency--
(i) makes a determination described in paragraph (2); and
(ii) justifies the determination in writing and certifies the accuracy
and completeness of the justification;
(B) the justification is approved as described in 303(f)(1)(B) of the
Federal Property and Administrative Services Act of 1949 (41 U.S.C. 253(f)(1)(B))
or section 2304(f)(1)(B) of title 10, United States Code; and
(C) a statement describing the determination, justification, and approval
are submitted to the chairman and ranking member of the committees described
in paragraph (3).
(2) A determination described in this paragraph is a determination in writing
that--
(A) for one of the reasons set forth in section 303(c) of the Federal
Property and Administrative Services Act of 1949 (41 U.S.C. 253(c)) or
section 2304(c) of title 10, United States Code, a single task or delivery
order contract is in the best interest of the Federal Government; or
(B) the task orders expected under the contract are so integrally related
that only a single contractor can reasonably perform the work.
(3) The committees described in this paragraph are the Committee on Government
Reform of the House of Representatives, the Committee on Homeland Security
and Governmental Affairs of the Senate, the Committees on Appropriations
of the House of Representatives and the Senate, and other committees of
jurisdiction.
(4) In the case of a determination described in paragraph (2)(A) that is
for the reason set forth in section 303(c)(2) of the Federal Property and
Administrative Services Act of 1949 or section 2304(c)(2) of title 10, United
States Code, the justification and approval required under paragraph (1)
may be made after a contract is awarded, but not later than 30 days after
the date of the award.
(d) Multiple Awards- This section applies to a task order contract that is
a Hurricane Katrina-related contract for the procurement of advisory and assistance
services under section 303I of the Federal Property and Administrative Services
Act of 1949 (41 U.S.C. 253i) or section 2304a of title 10, United States Code,
notwithstanding section 303I(e) of such Act or section 2304a(d) of such title,
respectively.
SEC. 212. COMPETITION IN MULTIPLE AWARD CONTRACTS.
(a) Competition Required- The Federal Government shall use competition in
the purchase of goods and services pursuant to any Hurricane Katrina-related
contract that is a multiple award contract in accordance with this section.
(b) Specific Requirements- Each individual purchase of goods or services by
an executive agency or military department in excess of $100,000 that is made
under a Hurricane Katrina-related contract that is a multiple award contract
shall be made on a competitive basis unless a contracting officer of the executive
agency or military department concerned--
(1) waives the requirement on the basis of a determination that--
(A)(i) in the case of a contract entered into by an executive agency,
one of the circumstances described in paragraphs (1) through (4) of section
303J(b) of the Federal Property and Administrative Services Act of 1949
(41 U.S.C. 253j(b)) applies to such individual purchase; or
(ii) in the case of a contract entered into by a military department,
one of the circumstances described in paragraphs (1) through (4) of section
2304c(b) of title 10, United States Code, applies to such individual purchase;
or
(B) a statute expressly authorizes or requires that the purchase be made
from a specified source; and
(2) justifies the determination in writing.
(c) Definitions- In this section:
(1) The term `individual purchase' means a task order, delivery order, or
other purchase.
(2) The term `multiple award contract' means--
(A) a contract that is entered into by the Administrator of General Services
under the multiple award schedule program referred to in section 309(b)(3)
of the Federal Property and Administrative Services Act of 1949 (41 U.S.C.
259(b)(3)) or section 2302(2)(C) of title 10, United States Code;
(B) a multiple award task order contract that is entered into under the
authority of sections 2304a through 2304d of title 10, United States Code,
or sections 303H through 303K of the Federal Property and Administrative
Services Act of 1949 (41 U.S.C. 253h through 253k); and
(C) any other indefinite delivery, indefinite quantity contract that is
entered into by the head of an executive agency with two or more sources
pursuant to the same solicitation.
SEC. 213. PROHIBITION ON CONTRACTOR CONFLICTS OF INTEREST.
(a) Prohibition- An agency may not enter into a Hurricane Katrina-related
contract for the performance of a function relating to contract oversight
with any contractor with a conflict of interest.
(b) Definitions- In this section:
(1) The term `function relating to contract oversight' includes the following
specific functions:
(A) Evaluation of a contractor's performance.
(B) Evaluation of contract proposals.
(C) Development of statements of work.
(D) Services in support of acquisition planning.
(2) The term `conflict of interest' includes cases in which the contractor
performing the function relating to contract oversight, or any related entity--
(A) is performing all or some of the work to be overseen;
(B) has a separate ongoing business relationship, such as a joint venture
or contract, with any of the contractors to be overseen;
(C) would be placed in a position to affect the value or performance of
work it or any related entity is doing under any other Government contract;
(D) has a reverse role with the contractor to be overseen under one or
more separate Government contracts; and
(E) has some other relationship with the contractor to be overseen that
could reasonably appear to bias the contractor's judgment.
(3) The term `related entity', with respect to a contractor, means any subsidiary,
parent, affiliate, joint venture, or other entity related to the contractor.
(c) Contracts Relating to Inherently Governmental Functions- An agency may
not enter into a Hurricane Katrina-related contract for the performance of
inherently governmental functions for contract oversight (as described in
subpart 7.5 of part 7 of the Federal Acquisition Regulation).
SEC. 214. CLOSING THE REVOLVING DOOR.
(a) Strengthening the Prohibition on Former Official's Acceptance of Compensation
From Contractor-
(1) Paragraph (1) of section 27(d) of the Office of Federal Procurement
Policy Act (41 U.S.C. 423(d)(1)) is amended--
(A) in subparagraph (C), by striking `personally made for the Federal
agency--' and inserting `participated personally and substantially in--';
and
(B) in the text preceding subparagraph (A)--
(i) by striking `one year' and inserting `two years'; and
(ii) by striking `or consultant' and inserting `consultant, lawyer,
or lobbyist'.
(2) Paragraph (2) of section 27(d) of such Act (41 U.S.C. 423(d)(2)) is
amended to read as follows:
`(2) For purposes of paragraph (1), the term `contractor' includes any division,
affiliate, subsidiary, parent, joint venture, or other related entity of the
contractor.'.
(b) Prevention of Former Employees of Private Contractors From Awarding Government
Contracts to Their 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- A former employee of a nongovernment entity who becomes an employee
of the Federal Government shall not be personally and substantially involved
with any Federal agency procurement involving the employee's former nongovernment
entity employer, including any division, affiliate, subsidiary, parent, joint
venture, or other related entity of the former employer, for a period of 5
years beginning on the date the employee leaves the employ of the nongovernment
entity. In this subsection the term `nongovernment entity' means any entity
that is not part of the Federal Government or any State or local government.'.
(c) Requirement for Federal Procurement Officers to Disclose Job Offers Made
to 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),'.
(d) Revised Penalties- Paragraph (1) of section 27(e) of such Act (41 U.S.C.
(e)(1)) is amended to read as follows:
`(1) CRIMINAL PENALTIES- Whoever engages in conduct constituting a violation
of--
`(A) subsection (a) or (b) for the purpose of either--
`(i) exchanging the information covered by such subsection for anything
of value, or
`(ii) obtaining or giving anyone a competitive advantage in the award
of a Federal agency procurement contract; or
`(B) subsection (c) or (d);
shall be imprisoned for not more than 5 years or fined as provided under
title 18, United States Code, or both.'.
SEC. 215. REPEAL OF $250,000 MICROPURCHASE THRESHOLD.
Section 101 of the Second Emergency Supplemental Appropriations Act to Meet
Immediate Needs Arising From the Consequences of Hurricane Katrina, 2005 (Public
Law 109-62) is amended--
(1) by striking paragraph (2); and
(2)(A) by striking `operations--
(B) by inserting in lieu of the matter struck by subparagraph (A) `operations,
the emergency'; and
(C) by striking `; and' and inserting a period.
Subtitle C--General Provisions
SEC. 221. DEFINITION OF HURRICANE KATRINA-RELATED CONTRACT.
In this title, the term `Hurricane Katrina-related contract' or `Hurricane
Katrina-related task or delivery order contract' means a contract for the
procurement of property or services to be used in support of Hurricane Katrina
rescue, relief, recovery, or reconstruction operations. The term includes
any subcontracts under such a contract.
END