S.Amdt. 5343

1. Adds SEC. 834. INTEGRITY AND BUSINESS ETHICS REQUIREMENTS FOR FEDERAL CONTRACTORS at the end of subtitle D of title VIII

   Adds a section

   In S. 3001 · Placed on Calendar Senate

   (c) Contractor Defined.--In this section, the term "contractor" has the meaning given that term in section 2409(e)(4) of title 10, United States Code.

   Inserted: SEC. 834. INTEGRITY AND BUSINESS ETHICS REQUIREMENTS FOR FEDERAL CONTRACTORS.

   Inserted: (a) Defense Contractors.--

   Inserted: (1) In general.--Chapter 137 of title 10, United States Code, is amended by inserting after section 2305a the following new section:

   Inserted: "Sec. 2305b. Satisfactory record of integrity and business ethics

   Inserted: "(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 satisfactory compliance with the law (including tax, labor and employment, environmental, antitrust, and consumer protection laws).

   Inserted: "(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--

   Inserted: "(1) shall consider all relevant credible information, but shall give the greatest weight to violations of law that have been adjudicated within the last 5 years preceding the offer;

   Inserted: "(2) shall give consideration to 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;

   Inserted: "(3) shall consider failure to comply with the terms of an administrative agreement as evidence of a lack of integrity and business ethics under this section;

   Inserted: "(4) shall consider in descending order of importance--

   Inserted: "(A) convictions of and civil judgments rendered against the prospective contractor for--

   Inserted: "(i) commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a public Federal, State, or local contract or subcontract;

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   Inserted: "(ii) violation of Federal or State antitrust law relating to the submission of offers; or

   Inserted: "(iii) commission of embezzlement, theft, forgery, bribery, falsification, or destruction of records, making false statement, tax evasion, or receiving stolen property; and

   Inserted: "(B) relative to tax, labor and employment, environmental, antitrust, or consumer protection laws--

   Inserted: "(i) Federal or State felony convictions;

   Inserted: "(ii) adverse Federal court judgments in civil cases brought by the United States;

   Inserted: "(iii) adverse decisions by a Federal administrative law judge, board, or commission indicating violations of law;

   Inserted: "(iv) Federal or State felony indictments; and

   Inserted: "(v) any other civil judgment rendered against the prospective contractor; and

   Inserted: "(5) 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.

   Inserted: "(c) Repeated Violations of Law.--A single violation of law normally should not give rise to a determination that the prospective contractor has an unsatisfactory record of integrity and business ethics, but evidence of repeated, pervasive, or significant violations of the law may indicate an unsatisfactory record of integrity and business ethics.".

   Inserted: (2) Clerical amendment.--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:

   Inserted: "2305b. Satisfactory record of integrity and business ethics.".

   Inserted: (b) Civilian Contractors.--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:

   Inserted: "SEC. 303N. SATISFACTORY RECORD OF INTEGRITY AND BUSINESS ETHICS.

   Inserted: "(a) In General.--No prospective contractor may be awarded a contract with an executive agency unless the contracting officer for the contract determines that such prospective contractor has a satisfactory record of integrity and business ethics, including satisfactory compliance with the law (including tax, labor and employment, environmental, antitrust, and consumer protection laws).

   Inserted: "(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--

   Inserted: "(1) shall consider all relevant credible information, but shall give the greatest weight to violations of law that have been adjudicated within the last 5 years preceding the offer;

   Inserted: "(2) shall give consideration to 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;

   Inserted: "(3) shall consider failure to comply with the terms of an administrative agreement as evidence of a lack of integrity and business ethics under this section;

   Inserted: "(4) shall consider in descending order of importance--

   Inserted: "(A) convictions of and civil judgments rendered against the prospective contractor for--

   Inserted: "(i) commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a public Federal, State, or local contract or subcontract;

   Inserted: "(ii) violation of Federal or State antitrust law relating to the submission of offers; or

   Inserted: "(iii) commission of embezzlement, theft, forgery, bribery, falsification, or destruction of records, making false statement, tax evasion, or receiving stolen property; and

   Inserted: "(B) relative to tax, labor and employment, environmental, antitrust, or consumer protection laws--

   Inserted: "(i) Federal or State felony convictions;

   Inserted: "(ii) adverse Federal court judgments in civil cases brought by the United States;

   Inserted: "(iii) adverse decisions by a Federal administrative law judge, board, or commission indicating violations of law; and

   Inserted: "(iv) Federal or State felony indictments; and

   Inserted: "(5) may consider other relevant information, such as civil or administrative complaints or similar actions filed by or on behalf of an executive agency, board, or commission, if such action reflects an adjudicated determination by the agency.

   Inserted: "(c) Repeated Violations of Law.--A single violation of law normally should not give rise to a determination that the prospective contractor has an unsatisfactory record of integrity and business ethics, but evidence of repeated, pervasive, or significant violations of the law may indicate an unsatisfactory record of integrity and business ethics.".

   Inserted: (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.

   Original wording

   At the end of subtitle D of title VIII, add the following:

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As printed