What it changes

1 change to S.Con.Res. 70

Adds a section
  1. Adds SEC. __. SENSE OF THE SENATE REGARDING OVERSEAS CONTRACTING INTEGRITY REQUIREMENTS wherever appropriate

    Adds a section

    Inserted: SEC. __. SENSE OF THE SENATE REGARDING OVERSEAS CONTRACTING INTEGRITY REQUIREMENTS.

    Inserted: (a) Findings.--The Senate makes the following findings:

    Inserted: (1) Overseas contracts pose a significant potential for fraud and abuse.

    Inserted: (2) Fraud against the Federal Government, whether it occurs domestically or abroad, should be detected and prosecuted to the fullest extent of the law.

    Inserted: (3) On May 23, 2007, the Department of Justice requested amendments to the Federal Acquisition Regulation (referred to in this section as "FAR") that would require Federal Government contractors to--

    Inserted: (A) have a code of ethics and business conduct;

    Inserted: (B) establish and maintain specific internal controls to detect and prevent improper conduct in connection with the award or performance of Federal Government contracts or subcontracts; and

    Inserted: (C) notify contracting officers without delay whenever the contractor had become aware of violations of Federal criminal law with regards to such contracts or subcontracts.

    Inserted: (4) The Department of Defense, the General Services Administration, and the National Aeronautics and Space Administration issued a Federal Acquisition Regulation entitled, "Contractor Compliance Program and Integrity Reporting" (FAR Case 2007-006), on November 14, 2007.

    Inserted: (5) The rule proposed in the regulation issued on November 14, 2007, included a loophole that would exempt from such regulation any contract or subcontract to be performed entirely outside the United States.

    Inserted: (6) The Department of Justice objected to the inclusion of such new loophole in a letter to the General Services Administration dated January 14, 2008.

    Inserted: (7) The proposed rule is currently under review by the Office of Management and Budget and continues to include such new loophole for overseas contracts.

    Show 3 more inserted paragraphs

    Inserted: (b) Sense of the Senate.--It is the sense of the Senate that--

    Inserted: (1) Federal Government contracts to be performed outside the United States should be subject to ethics, control, and reporting requirements that are the same, or at least as rigorous as those for contracts to be performed domestically; and

    Inserted: (2) any final rulemaking related to FAR Case 2007-006 should not exempt overseas contracts.

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    Original wording

    At the appropriate place, insert the following:

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As printed

SA 4174. Mr. GRASSLEY (for himself and Mrs. McCaskill) submitted an amendment intended to be proposed by him to the concurrent resolution S. Con. Res. 70, setting forth the congressional budget for the United States Government for fiscal year 2009 and including the appropriate budgetary levels for fiscal years 2008 and 2010 through 2013; which was ordered to lie on the table; as follows:

At the appropriate place, insert the following:

SEC. __. SENSE OF THE SENATE REGARDING OVERSEAS CONTRACTING INTEGRITY REQUIREMENTS.

(a) Findings.--The Senate makes the following findings:

(1) Overseas contracts pose a significant potential for fraud and abuse.

(2) Fraud against the Federal Government, whether it occurs domestically or abroad, should be detected and prosecuted to the fullest extent of the law.

(3) On May 23, 2007, the Department of Justice requested amendments to the Federal Acquisition Regulation (referred to in this section as “FAR”) that would require Federal Government contractors to--

(A) have a code of ethics and business conduct;

(B) establish and maintain specific internal controls to detect and prevent improper conduct in connection with the award or performance of Federal Government contracts or subcontracts; and

(C) notify contracting officers without delay whenever the contractor had become aware of violations of Federal criminal law with regards to such contracts or subcontracts.

(4) The Department of Defense, the General Services Administration, and the National Aeronautics and Space Administration issued a Federal Acquisition Regulation entitled, “Contractor Compliance Program and Integrity Reporting” (FAR Case 2007-006), on November 14, 2007.

(5) The rule proposed in the regulation issued on November 14, 2007, included a loophole that would exempt from such regulation any contract or subcontract to be performed entirely outside the United States.

(6) The Department of Justice objected to the inclusion of such new loophole in a letter to the General Services Administration dated January 14, 2008.

(7) The proposed rule is currently under review by the Office of Management and Budget and continues to include such new loophole for overseas contracts.

(b) Sense of the Senate.--It is the sense of the Senate that--

(1) Federal Government contracts to be performed outside the United States should be subject to ethics, control, and reporting requirements that are the same, or at least as rigorous as those for contracts to be performed domestically; and

(2) any final rulemaking related to FAR Case 2007-006 should not exempt overseas contracts.

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Senate amendment submitted

March 11, 2008