109th CONGRESS
2d Session
H. R. 6069
To reform acquisition practices of the Federal Government.
IN THE HOUSE OF REPRESENTATIVES
September 13, 2006
Mr. WAXMAN (for himself, Mr. CARDOZA, Mr. OBEY, Ms. NORTON, and Mr. TIERNEY)
introduced the following bill; which was referred to the Committee on Government
Reform, and in addition to the Committees on Armed Services, Rules, and
Small Business, 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 reform acquisition practices of the Federal Government.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.
(a) Short Title- This Act may be cited as the `Clean 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--PROMOTING COMPETITION IN THE AWARD OF CONTRACTS
Sec. 101. Limitation on length of noncompetitive contracts.
Sec. 102. Competition in multiple award contracts.
Sec. 103. Minimizing sole-source contracts.
Sec. 104. Public disclosure of justification and approval documents and
other determinations for noncompetitive contracts.
TITLE II--LIMITING THE USE OF ABUSE-PRONE CONTRACTS
Sec. 201. Prohibition on award of monopoly contracts.
Sec. 202. Limitations on tiering of subcontractors.
Sec. 203. Minimizing cost-reimbursement type contracts.
TITLE III--PREVENTING THE ABUSE OF CONTRACT FLEXIBILITIES
Sec. 301. Preventing abuse of commercial item authority.
Sec. 302. Preventing abuse of other transaction authority.
Sec. 303. Preventing abuse of interagency contracts.
Sec. 304. Preventing abuse of Government credit cards.
Sec. 305. Repeal of Alaska Native Corporation loophole.
TITLE IV--INCREASING CONTRACT OVERSIGHT
Sec. 401. Funding contract oversight.
Sec. 402. Prohibition on contractor conflicts of interest.
Sec. 403. Disclosure of Government contractor overcharges.
Sec. 404. Public availability of Federal contract awards.
Sec. 405. Provision of information to Congress.
Sec. 406. Oversight by the Government Reform Committee.
Sec. 407. Nonpartisan Chief Acquisition Officers.
Sec. 408. Improving the Federal Procurement Data System.
Sec. 409. Enforcement through bid protest.
TITLE V--PREVENTING UNJUSTIFIED AWARD FEES
Sec. 501. Encouraging excellent contract performance.
TITLE VI--DETERRING CORRUPTION IN CONTRACTING
Sec. 601. Closing the revolving door.
Sec. 602. Requiring contractor integrity and business ethics.
Sec. 603. Enhancement of whistleblower protections.
TITLE I--PROMOTING COMPETITION IN THE AWARD 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 240 days, unless the head of the
executive agency concerned determines that exceptional circumstances apply.
(c) Covered Contracts- This section applies to any contract in an amount
greater than the simplified acquisition threshold 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 a military department, the term means
the Secretary of Defense.
SEC. 102. COMPETITION IN MULTIPLE AWARD CONTRACTS.
(a) Expansion of Applicability to All Government Contracts- 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 303M the following new
section:
`SEC. 303N. COMPETITION IN MULTIPLE AWARD CONTRACTS.
`(a) Regulations Required- Not later than 180 days after the date of the
enactment of this section, the Federal Acquisition Regulation shall be revised
to require competition in the purchase of goods and services by each executive
agency pursuant to multiple award contracts.
`(b) Content of Regulations- (1) The regulations required by subsection
(a) shall provide, at a minimum, that each individual purchase of goods
or services in excess of $100,000 that is made under a multiple award contract
shall be made on a competitive basis unless a contracting officer of the
executive agency--
`(A) waives the requirement on the basis of a determination that--
`(i) one of the circumstances described in paragraphs (1) through (4)
of section 303J(b) applies to such individual purchase; or
`(ii) a statute expressly authorizes or requires that the purchase be
made from a specified source; and
`(B) justifies the determination in writing.
`(2) For purposes of this subsection, an individual purchase of goods or
services is made on a competitive basis only if it is made pursuant to procedures
that--
`(A) require fair notice of the intent to make that purchase (including
a description of the work to be performed and the basis on which the selection
will be made) to be provided to all contractors offering such goods or
services under the multiple award contract; and
`(B) afford all contractors responding to the notice a fair opportunity
to make an offer and have that offer fairly considered by the official
making the purchase.
`(3) Notwithstanding paragraph (2), notice may be provided to fewer than
all contractors offering such goods or services under a multiple award contract
described in subsection (c)(2)(A) if notice is provided to as many contractors
as practicable.
`(4) A purchase may not be made pursuant to a notice that is provided to
fewer than all contractors under paragraph (3) unless--
`(A) offers were received from at least three qualified contractors; or
`(B) a contracting officer of the executive agency determines in writing
that no additional qualified contractors were able to be identified despite
reasonable efforts to do so.
`(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);
`(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; 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.
`(d) Applicability- The revisions to the Federal Acquisition Regulation
pursuant to subsection (a) shall take effect not later than 180 days after
the date of the enactment of this section and shall apply to all individual
purchases of goods or services that are made under multiple award contracts
on or after the effective date, without regard to whether the multiple award
contracts were entered into before, on, or after such effective date.'.
(b) Conforming Amendments to Defense Contract Provision- Section 803 of
the National Defense Authorization Act for Fiscal Year 2002 (Public Law
107-107; 10 U.S.C. 2304 note) is amended as follows:
(1) The section heading is amended by inserting `goods or' before `services'.
(2) Subsection (a) is amended by inserting `goods and' before `services'.
(3) The following provisions are amended by inserting `goods or' before
`services' each place it appears:
(A) Paragraphs (1), (2), and (3) of subsection (b).
(4) Such section is amended by adding at the end the following new subsection:
`(e) Applicability to Goods- The Secretary shall revise the regulations
promulgated pursuant to subsection (a) to cover purchases of goods by the
Department of Defense pursuant to multiple award contracts. The revised
regulations shall take effect in final form not later than 180 days after
the date of the enactment of this subsection and shall apply to all individual
purchases of goods that are made under multiple award contracts on or after
the effective date, without regard to whether the multiple award contracts
were entered into before, on, or after such effective date.'.
SEC. 103. MINIMIZING SOLE-SOURCE CONTRACTS.
(a) Plans Required- 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.) and the head of each agency covered by chapter 137 of title
10, United States Code, shall develop and implement a plan to minimize the
use of contracts entered into using procedures other than competitive procedures
by the agency concerned. The plan shall contain measurable goals and shall
be completed and submitted to the Committee on Government Reform of the
House of Representatives and the Committee on Homeland Security and Governmental
Affairs of the Senate, 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.
SEC. 104. PUBLIC DISCLOSURE OF JUSTIFICATION AND APPROVAL DOCUMENTS AND
OTHER DETERMINATIONS FOR NONCOMPETITIVE CONTRACTS.
(a) Civilian Agency Contracts- 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) In the case of a procurement permitted by subsection (c), the head
of an executive agency shall make publically available, within 14 days after
the award of the contract, the documents containing the following:
`(A) The justification and approval required by subsection (f)(1) with
respect to the procurement.
`(B) Any determination with respect to the procurement that exceptional
circumstances apply, under section 101(b) of the Clean Contracting Act.
`(C) Any determination with respect to the procurement under section
303H(d)(3)(C) (relating to a monopoly contract).
`(D) Any determination with respect to the procurement that exceptional
circumstances apply, under section 202(b) of the Clean Contracting Act.
`(2) The documents shall be made available on the website of the agency
and through the Federal Procurement Data System.
`(3) Nothing in this subsection shall be construed to supersede or otherwise
affect section 552 of title 5.'.
(b) Defense Agency Contracts- Section 2304 of title 10, United States Code,
is amended by adding at the end the following new subsection:
`(l)(1) In the case of a procurement permitted by subsection (c), the head
of an agency shall make publically available, within 14 days after the award
of the contract, the documents containing the following:
`(A) The justification and approval required by subsection (f)(1) with
respect to the procurement.
`(B) Any determination with respect to the procurement that exceptional
circumstances apply, under section 101(b) of the Clean Contracting Act.
`(C) Any determination with respect to the procurement under section
2304a(d)(4)(C) of this title (relating to a monopoly contract).
`(D) Any determination with respect to the procurement that exceptional
circumstances apply, under section 202(b) of the Clean Contracting Act.
`(2) The documents shall be made available on the website of the agency
and through the Federal Procurement Data System.
`(3) Nothing in this subsection shall be construed to supersede or otherwise
affect section 552 of title 5, United States Code.'.
TITLE II--LIMITING THE USE OF ABUSE-PRONE CONTRACTS
SEC. 201. PROHIBITION ON AWARD OF MONOPOLY CONTRACTS.
(a) Civilian Agency Contracts-
(1) Paragraph (3) of section 303H(d) of title III of the Federal Property
and Administrative Services Act of 1949 (41 U.S.C. 253h(d)) is amended
to read as follows:
`(3)(A) The regulations implementing this subsection shall prohibit the
award of monopoly contracts.
`(B) In this subsection, the term `monopoly contract' means a task or
delivery order contract in an amount estimated to exceed $10,000,000 (including
all options) awarded to a single contractor.
`(C) Notwithstanding subparagraph (A), a monopoly contract may be awarded
if the head of the agency determines in writing that--
`(i) for one of the reasons set forth in section 303(c), a single task
or delivery order contract is in the best interest of the Federal Government;
or
`(ii) the task orders expected under the contract are so integrally
related that only a single contractor can reasonably perform the work.'.
(2) Section 303H(d)(1) of such Act is amended by striking `The head' and
inserting `Subject to paragraph (3), the head'.
(3) Subsection (e) of section 303I of such Act (41 United States Code
253i) is amended to read as follows:
`(e) Multiple Awards- Section 303H(d) applies to a task or delivery order
contract for the procurement of advisory and assistance services under this
section.'.
(1) Section 2304a(d) of title 10, United States Code, is amended by adding
at the end the following new paragraph:
`(4)(A) The regulations implementing this subsection shall prohibit the
award of monopoly contracts.
`(B) In this subsection, the term `monopoly contract' means a task or
delivery order contract in an amount estimated to exceed 10,000,000 (including
all options) awarded to a single contractor.
`(C) Notwithstanding subparagraph (A), a monopoly contract may be awarded
if the head of the agency determines in writing that--
`(i) for one of the reasons set forth in section 2304(c), a single task
or delivery order contract is in the best interest of the Federal Government;
or
`(ii) the task orders expected under the contract are so integrally
related that only a single contractor can reasonably perform the work.'.
(2) Section 2304a(d)(1) of such title is amended by striking `The head'
and inserting `Subject to paragraph (4), the head'.
(3) Subsection (e) of section 2304b of such title is amended to read as
follows:
`(e) Multiple Awards- Section 2304a(d) of this title applies to a task or
delivery order contract for the procurement of advisory and assistance services
under this section.'.
SEC. 202. LIMITATIONS ON TIERING OF SUBCONTRACTORS.
(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 minimize
the excessive use by contractors of subcontractors or tiers of subcontractors
to perform the principal work of any contract described in subsection (c).
(b) Specific Requirement- At a minimum, the regulations promulgated under
subsection (a) shall--
(1) preclude a contractor from using subcontracts for more than 65 percent
of the cost of the contract (not including overhead and profit), unless
the head of the executive agency concerned determines that exceptional
circumstances apply; and
(2) preclude a subcontractor from using a lower tier subcontractor for
more than 65 percent of the cost of the subcontract (not including overhead
and profit), unless the head of the executive agency concerned determines
that exceptional circumstances apply.
(c) Covered Contracts- This section applies to any cost-reimbursement type
contract in an amount greater than the simplified acquisition threshold
entered into by an executive agency.
(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 a military department, the term means
the Secretary of Defense.
SEC. 203. MINIMIZING COST-REIMBURSEMENT TYPE CONTRACTS.
(a) Plans Required- 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.) and the head of each agency covered by chapter 137 of title
10, United States Code, shall develop and implement a plan to minimize the
use of cost-reimbursement type contracts by the agency concerned. The plan
shall contain measurable goals and shall be completed and submitted to the
Committee on Government Reform of the House of Representatives and the Committee
on Homeland Security and Governmental Affairs of the Senate, 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.
TITLE III--PREVENTING THE ABUSE OF CONTRACT FLEXIBILITIES
SEC. 301. PREVENTING ABUSE OF COMMERCIAL ITEM AUTHORITY.
Section 4(12) of the Office of Federal Procurement Policy Act (41 U.S.C.
403(12)) is amended--
(1) by striking the following:
`(C) Any item that, but for--
`(i) modifications of a type customarily available in the commercial
marketplace, or
`(ii) minor modifications made to meet Federal Government requirements,
would satisfy the criteria in subparagraph (A) or (B).'; and
(2) in subparagraphs (D) and (E), by striking `(C),' each place it appears.
SEC. 302. PREVENTING ABUSE OF OTHER TRANSACTION AUTHORITY.
Section 845(d)(1) of the National Defense Authorization Act for Fiscal Year
1994 (10 U.S.C. 2371 note) is amended--
(1) by striking `unless--' and all that follows in subparagraph (A) through
`at least' and inserting `unless there is at least';
(2) by striking `; or' and inserting a period; and
(3) by striking the following:
`(B) no nontraditional defense contractor is participating to a significant
extent in the prototype project, but at least one of the following circumstances
exists:
`(i) At least one third of the total cost of the prototype project
is to be paid out of funds provided by parties to the transaction
other than the Federal Government.
`(ii) The senior procurement executive for the agency (as designated
for the purposes of section 16(3) of the Office of Federal Procurement
Policy Act (41 U.S.C. 414(3)) determines in writing that exceptional
circumstances justify the use of a transaction that provides for innovative
business arrangements or structures that would not be feasible or
appropriate under a contract.'.
SEC. 303. PREVENTING ABUSE OF INTERAGENCY CONTRACTS.
(a) Office of Management and Budget Policy Guidance-
(1) REPORT AND GUIDELINES- Not later than one year after the date of the
enactment of this Act, the Director of the Office of Management and Budget
shall--
(A) submit to Congress a comprehensive report on interagency acquisitions,
including their frequency of use, management controls, cost-effectiveness,
and savings generated; and
(B) issue guidelines to assist the heads of executive agencies in improving
the management of interagency acquisitions.
(2) MATTERS COVERED BY GUIDELINES- For purposes of paragraph (1)(B), the
Director shall include guidelines on the following matters:
(A) Procedures for the use of interagency acquisitions to maximize competition,
deliver best value to executive agencies, and minimize waste, fraud,
and abuse.
(B) Categories of contracting inappropriate for interagency acquisition,
due to high risk of waste, fraud, or abuse.
(C) Requirements for training acquisition workforce personnel in the
proper use of interagency acquisitions.
(b) Regulations Required- Not later than one year after the date of the
enactment of this Act, the Federal Acquisition Regulation shall be revised
to require that all interagency acquisitions--
(1) include a written agreement between the requesting agency and the
servicing agency assigning responsibility for the administration and management
of the contract;
(2) include a determination that an interagency acquisition is the best
procurement alternative; and
(3) include sufficient documentation to ensure an adequate audit.
(c) Agency Reporting Requirement- The senior procurement executive for each
executive agency shall, as directed by the Director of the Office of Management
and Budget, submit to the Director annual reports on the actions taken by
the executive agency pursuant to the guidelines issued under subsection
(a).
(d) Definitions- In this section:
(1) The term `executive agency' has the meaning given such term in section
4(1) of the Office of Federal Procurement Policy Act (41 U.S.C. 403(1)).
(2) The term `head of executive agency' means the head of an executive
agency except that, in the case of a military department, the term means
the Secretary of Defense.
(3) The term `interagency acquisition' means a procedure by which an executive
agency needing supplies or services (the requesting agency) obtains them
from another executive agency (the servicing agency). The term includes
acquisitions under section 1535 of title 31, United States Code (commonly
referred to as the `Economy Act', Federal Supply Schedules, and government-wide
acquisition contracts.
SEC. 304. PREVENTING ABUSE OF GOVERNMENT CREDIT CARDS.
(a) Office of Management and Budget Policy Guidance- Not later than 180
days after the date of enactment of this Act, the Director of the Office
of Management and Budget shall revise Appendix B of OMB Circular A-123 to
ensure the adequacy of the following:
(1) Procedures for identifying employees who should receive government
credit cards.
(2) Requirements for training employees in the proper use of government
credit cards.
(3) Procedures for monitoring and auditing government credit cards to
prevent waste, fraud, and abuse.
(4) Procedures for preventing the use of government credit cards for personal
purchases.
(5) Requirements to ensure adequate personnel for monitoring and auditing
government credit card use.
(6) Procedures for the collection and dissemination of best practices
and successful strategies for achieving savings through the use of government
credit cards.
(b) Reporting Requirement- Not later than one year after the date of the
enactment of this Act, the Director of the Office of Management and Budget
shall report to Congress a Government-wide summary for the previous fiscal
year of the information required to be reported to OMB by executive agencies
pursuant to OMB Circular A-123 (as revised February, 2006).
(c) Definitions- In this section the term `government credit card' means
an account established by a commercial financial institution on behalf of
agencies or individual agency employees to which the cost of purchasing
goods and services may be charged and includes government-issued purchase,
travel, and fleet cards.
SEC. 305. REPEAL OF ALASKA NATIVE CORPORATION LOOPHOLE.
Section 602(a) of the Business Opportunity Development Reform Act of 1988
(Public Law 100-656; 15 U.S.C. 637 note) is hereby repealed.
TITLE IV--INCREASING CONTRACT OVERSIGHT
SEC. 401. FUNDING CONTRACT OVERSIGHT.
(a) Civilian Agency Contracts- Title III of the Federal Property and Administrative
Services Act of 1949 (41 U.S.C. 251 et seq.) is amended by adding at the
end the following new section:
`SEC. 318. REQUIREMENT FOR 1 PERCENT OF CONTRACT AMOUNTS TO BE USED FOR
CONTRACT PERSONNEL, ADMINISTRATION, OVERSIGHT, AND PLANNING.
`In addition to the sums used for the purposes listed in this section as
of the date of the enactment of this section, each fiscal year, the head
of an executive agency shall ensure that the agency uses an additional amount
equal to 1 percent of the aggregate amount of contracts entered into by
the agency during that fiscal year for the following purposes:
`(1) Hiring and training of acquisition workforce personnel.
`(3) Contract administration and oversight.
`(4) Contract audits and enforcement.'.
(b) Defense Contracts- Chapter 141 of title 10, United States Code, is amended
by adding at the end the following new section:
`Sec. 2410p. Requirement for 1 percent of contract amounts to be used
for contract personnel, administration, oversight, and planning
`In addition to the sums used for the purposes listed in this section as
of the date of the enactment of this section, each fiscal year, the head
of an agency (as defined in section 2302(1) of this title) shall ensure
that the agency uses an additional amount equal to 1 percent of the aggregate
amount of contracts entered into by the agency during that fiscal year for
the following purposes:
`(1) Hiring and training of acquisition workforce personnel.
`(3) Contract administration and oversight.
`(4) Contract audits and enforcement.'.
SEC. 402. PROHIBITION ON CONTRACTOR CONFLICTS OF INTEREST.
(a) Prohibition- An agency may not enter into a 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 or any related
entity;
(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 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).
(d) Effective Date and Applicability- This section shall take effect on
the date of enactment of this Act and shall apply to--
(1) contracts entered into on or after such date;
(2) any task or delivery order issued on or after such date under a contract
entered into before, on, or after such date; and
(3) any decision on or after such date to exercise an option or otherwise
extend a contract for the performance of a function relating to contract
oversight regardless of whether such contract was entered into before,
on, or after the date of enactment of this Act.
SEC. 403. DISCLOSURE OF GOVERNMENT CONTRACTOR OVERCHARGES.
(a) Quarterly Report to Congress-
(1) The head of each Federal agency or department shall submit to the
chairman and ranking member of each committee described in paragraph (2)
on a quarterly basis a report that includes the following:
(A) 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 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 audits or other reports issued during the applicable quarter
that identify significant or substantial 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 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.
(b) Submission of Individual Audits- 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 of the committees described in subsection
(a)(2), a full and unredacted copy of any audit or other report described
in subsection (a)(1).
SEC. 404. PUBLIC AVAILABILITY OF FEDERAL CONTRACT AWARDS.
(a) Amendment- The Office of Federal Procurement Policy Act (41 U.S.C. 403
et seq.) is amended by inserting after section 19 the following new section:
`SEC. 19A. PUBLIC AVAILABILITY OF CONTRACT AWARD INFORMATION.
`(a) In General- Except as provided in subsection (b), not later than 14
days after the award of a 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.
`(9) The name of the executive agency that will receive the goods or services
procured under the contract, if other than the agency awarding the contract.
`(b) Exception- Nothing in this section shall require the disclosure of
classified information.'.
(b) Clerical Amendment- The table of contents contained in section 1(b)
of such Act is amended by inserting after the item relating to section 19
the following new item:
`Sec. 19A. Public availability of contract award information.'.
(c) Effective Date- The amendments made by this Act shall apply to contracts
entered into more than 90 days after the date of the enactment of this Act.
SEC. 405. 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 contract or task or
delivery order under a task or delivery order contract entered into by the
agency, within 14 days after receipt of the request, unredacted copies of
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;
(7) audit reports and other evaluations;
(8) justification for type of contract;
(9) authority for deviations from regulations, statutory requirements,
or other restrictions;
(10) bills, invoices, vouchers, and supporting documents;
(11) records of payments or receipts; and
(12) compensation determinations.
(b) Committees- The committees referred to in subsection (a) are the following:
(1) The Committee on 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.
(4) A subcommittee of jurisdiction of any of the committees referred to
in paragraphs (1), (2), or (3).
SEC. 406. OVERSIGHT BY THE GOVERNMENT REFORM COMMITTEE.
Clause (4)(c) of Rule X of the Rules of the House of Representatives is
amended by adding at the end the following new subparagraph:
`(3) In addition to its duties under subparagraph (1), the Committee on
Government Reform, or their subcommittees of jurisdiction, shall hold
hearings to investigate credible evidence or allegations of waste, fraud,
abuse, or mismanagement in Federal contracts, including allegations or
evidence presented in reports by an Inspector General of a Federal agency,
the Government Accountability Office, or the Defense Contract Audit Agency.'.
SEC. 407. NONPARTISAN CHIEF ACQUISITION OFFICERS.
Section 16 of the Office of Federal Procurement Policy Act (41 U.S.C. 414)
is amended in subsection (a)(1) by striking `non-career employee as'.
SEC. 408. IMPROVING THE FEDERAL PROCUREMENT DATA SYSTEM.
(a) Availability on Single Website-
(1) REQUIREMENT- The Federal Procurement Data System described in section
6(d)(4) of the Office of Federal Procurement Policy Act (41 U.S.C. 405(d)(4))
shall be modified, under the direction of the Administrator for Federal
Procurement Policy, so that not later than one year after the date of
the enactment of this Act, the complete data contained in the system are
available from a single Internet website that--
(A) allows for downloading of the data;
(B) is publicly accessible at no cost;
(C) is user-friendly; and
(D) is in a format that is easily searchable and that can be aggregated
by data element.
(2) COMPTROLLER GENERAL REPORT- Not later than 1 year after the date of
the enactment of this Act, the Comptroller General shall submit to Congress
a report on compliance with the requirement of paragraph (1).
(1) REQUIREMENT- The Federal Procurement Data System also shall be modified,
under the direction of the Administrator for Federal Procurement Policy,
to contain a classified annex. The annex shall contain the same information
for classified contracts that is required for unclassified contracts.
The annex shall be protected at all times by procedures established for
information that has been specifically authorized under criteria established
by an Executive order or an Act of Congress to be kept classified in the
interest of national defense or foreign policy.
(2) AGENCY REPORTING REQUIREMENT- The head of each executive agency shall
submit to Congress each year a report, in unclassified form, that includes
the following:
(A) The agency's total budget for classified procurement spending.
(B) The percentage of that agency's annual classified procurement spending
that is awarded for contracts--
(i) entered into using procedures other than competitive procedures
when the goods or services are available from only one responsible
source;
(ii) entered into using procedures other than competitive procedures
when the goods or services are available from a limited number of
responsible sources; and
(iii) entered into using full and open competition.
(c) Agency Reporting Requirement- The senior procurement officer for each
executive agency shall, as directed by the Director of the Office of Management
and Budget, submit to the Director annual reports on the actions taken by
the executive agency pursuant to the guidelines issued under subsection
(a).
SEC. 409. ENFORCEMENT THROUGH BID PROTEST.
Any aggrieved party may protest a lack of compliance with sections 101,
102, 201, 202, or 602 of this Act or any amendments made by those sections,
including an arbitrary decision by the agency head. Nothing in the preceding
sentence shall be interpreted to affect protest rights available to an aggrieved
party under other provisions of law.
TITLE V--PREVENTING UNJUSTIFIED AWARD FEES
SEC. 501. ENCOURAGING EXCELLENT CONTRACT PERFORMANCE.
(a) Limitation- For any cost-based contract entered into by the Federal
Government that includes an award or incentive fee--
(1) the fee may be paid only for above-satisfactory performance of the
contract; and
(2) at a minimum, the following factors shall be considered in making
a determination regarding whether, and in what amount, the fee shall be
paid to the contractor:
(A) Whether the contractor met cost goals.
(B) Whether the contractor met schedule goals.
(C) Whether the contractor met performance goals and delivered the goods
or services required to be provided under the contract.
(b) Definition- In this section, the term `above-satisfactory performance'
includes ratings of excellent, outstanding, and very good, as well as equivalent
ratings, but excludes ratings of acceptable, average, expected, good, and
satisfactory, as well as equivalent ratings.
TITLE VI--DETERRING CORRUPTION IN CONTRACTING
SEC. 601. CLOSING THE REVOLVING DOOR.
(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--
(A) by striking `or consultant' and inserting `consultant, lawyer, or
lobbyist';
(B) by striking `one year' and inserting `two years'; and
(C) in subparagraph (C), by striking `personally made for the Federal
agency--' and inserting `participated personally and substantially in--';
and
(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--
`(A) the offer of compensation is not a reward for any action described
in paragraph (1); and
`(B) acceptance of the compensation is appropriate and will not affect
the integrity of the procurement process.'.
(b) 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),'.
(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 the administration of such a contract, for the two-year period
beginning on the date on which the employee leaves the employment of the
contractor.'.
(d) Regulations- Section 27 of such Act (41 U.S.C. 423) is further amended
by adding at the end of 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.'.
SEC. 602. REQUIRING CONTRACTOR INTEGRITY AND BUSINESS ETHICS.
(a) Civilian Agency 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 303N, as added by section 102, the following new
section:
`SEC. 303O. PROHIBITION OF AWARD TO UNETHICAL CONTRACTORS.
`(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.
`(b) Definition- No prospective contractor shall be considered to have a
satisfactory record of integrity and business ethics if it--
`(1) has exhibited a pattern of overcharging the Government under Federal
contracts;
`(2) has exhibited a pattern of failing to comply with the law, including
tax, labor and employment, environmental, antitrust, and consumer protection
laws; or
`(3) has an outstanding debt with a Federal agency in a delinquent status.'
(2) The table of sections at the beginning of such Act is amended by inserting
after the item relating to section 303N, as added by section 102, the following
new item:
`Sec. 303O. Prohibition of award to unethical contractors.'.
(b) Defense Contractors- (1) Chapter 137 of title 10, United States Code,
is amended by inserting after section 2305a the following new section:
`Sec. 2305b. Prohibition of award to unethical contractors
`Section 303O of the Federal Property and Administrative Services Act of
1949 shall apply to a prospective contractor that may be awarded a contract
with an agency under this title in the same manner as such section applies
to a prospective contractor that may be awarded a contract with an agency
covered by that section.'.
(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. Prohibition of award to unethical contractors.'.
(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.
SEC. 603. ENHANCEMENT OF WHISTLEBLOWER PROTECTIONS.
(a) Civilian Agency Contracts- Section 315(c) of the Federal Property and
Administrative Services Act of 1949 (41 U.S.C. 265(c)), is amended--
(1) in paragraph (1), by striking `If the head' and all that follows through
`actions:' and inserting the following: `Not later than 180 days after
submission of a complaint under subsection (b), the head of the executive
agency concerned shall determine whether the contractor concerned has
subjected the complainant to a reprisal prohibited by subsection (a) and
shall either issue an order denying relief or shall take one or more of
the following actions:'; and
(2) by redesignating paragraph (3) as paragraph (4) and adding after paragraph
(2) the following new paragraph (3):
`(3) If the head of an executive agency has not issued an order within 180
days after the submission of a complaint under subsection (b) and there
is no showing that such delay is due to the bad faith of the complainant,
the complainant shall be deemed to have exhausted his administrative remedies
with respect to the complaint, and the complainant may bring an action at
law or equity for de novo review to seek compensatory damages and other
relief available under this section in the appropriate district court of
the United States, which shall have jurisdiction over such an action without
regard to the amount in controversy.'.
(b) Armed Services Contracts- Section 2409 of title 10, United States Code,
is amended--
(1) in paragraph (1), by striking `If the head' and all that follows through
`actions:' and inserting the following: `Not later than 180 days after
submission of a complaint under subsection (b), the head of the agency
concerned shall determine whether the contractor concerned has subjected
the complainant to a reprisal prohibited by subsection (a) and shall either
issue an order denying relief or shall take one or more of the following
actions:'; and
(2) by redesignating paragraph (3) as paragraph (4) and adding after paragraph
(2) the following new paragraph (3):
`(3) If the head of an agency has not issued an order within 180 days after
the submission of a complaint under subsection (b) and there is no showing
that such delay is due to the bad faith of the complainant, the complainant
shall be deemed to have exhausted his administrative remedies with respect
to the complaint, and the complainant may bring an action at law or equity
for de novo review to seek compensatory damages and other relief available
under this section in the appropriate district court of the United States,
which shall have jurisdiction over such an action without regard to the
amount in controversy.'.
END
