S.Amdt. 5365

1. Rewrites section 832

   Replaces

   In S. 3001 · Placed on Calendar Senate

   SEC. 832. ETHICS SAFEGUARDS FOR EMPLOYEES UNDER CERTAIN CONTRACTS FOR THE PERFORMANCE OF ACQUISITION FUNCTIONS CLOSELY ASSOCIATED WITH INHERENTLY GOVERNMENTAL FUNCTIONS.

   Inserted: (a) Ethics Safeguards.--

   ([struck: a][inserted: 1]) Contract [struck: Clause Required][inserted: clause required].--[struck: Each ][inserted: Not later than 180 days after the date of the enactment of this Act, the Federal Acquisition Regulation shall be amended to require that each ]contract (or task or delivery order) in excess of $500,000 that calls for the performance of acquisition functions closely associated with inherently governmental functions for or on behalf of [struck: the Department of Defense ][inserted: an executive agency ]shall include a contract clause addressing financial conflicts of interests of contractor employees who will be responsible for the performance of such functions.

   ([struck: b][inserted: 2]) Contents of [struck: Contract Clause][inserted: contract clause].--The contract clause required by [struck: subsection][inserted: paragraph] ([struck: a][inserted: 1]) shall, at a minimum--

   ([struck: 1][inserted: A]) require the contractor to prohibit any employee of the contractor from performing any functions described in [struck: subsection][inserted: paragraph] ([struck: a][inserted: 1]) under such a contract (or task or delivery order) relating to a program, company, contract, or other matter in which the employee (or a member of the employee's immediate family) has a financial interest without the express written approval of the contracting officer;

   ([struck: 2][inserted: B]) require the contractor to obtain, review, update, and maintain as part of its personnel records a financial disclosure statement from each employee assigned to perform functions described in [struck: paragraph][inserted: subparagraph] ([struck: 1][inserted: A]) under such a contract (or task or delivery order) that is sufficient to enable the contractor to ensure compliance with the requirements of [struck: paragraph][inserted: subparagraph] ([struck: 1][inserted: A]);

   ([struck: 3][inserted: C]) require the contractor to prohibit any employee of the contractor who is responsible for performing functions described in [struck: paragraph][inserted: subparagraph] ([struck: 1][inserted: A]) under such a contract (or task or delivery order) relating to a program, company, contract, or other matter from accepting a gift from the affected company or from an individual or entity that has a financial interest in the program, contract, or other matter;

   ([struck: 4][inserted: D]) require the contractor to prohibit contractor personnel who have access to non-public government information obtained while performing work on such a contract (or task or delivery order) from using such information for personal gain;

   ([struck: 5][inserted: E]) require the contractor to take appropriate disciplinary action in the case of employees who fail to comply with prohibitions established pursuant to this section;

   ([struck: 6][inserted: F]) require the contractor to promptly report any failure to comply with the prohibitions established pursuant to this section to the contracting officer for the applicable contract or contracts;

   ([struck: 7][inserted: G]) include appropriate definitions of the terms "financial interest" and "gift" that are similar to the definitions in statutes and regulations applicable to Federal employees;

   ([struck: 8][inserted: H]) establish appropriate contractual penalties for failures to comply with the requirements of [struck: paragraphs][inserted: subparagraphs] ([struck: 1][inserted: A]) through ([struck: 6][inserted: F]); and

   ([struck: 9][inserted: I]) provide such additional safeguards, definitions, and exceptions as may be necessary to safeguard the public interest.

   Struck: (c) Functions Closely Associated With Inherently Governmental Functions Defined.--In this section, the term "functions closely associated with inherently governmental functions" has the meaning given that term in section 2383(b)(3) of title 10, United States Code.

   Struck: (d) Effective Date.--This section shall take effect 30 days after the date of the enactment of this Act, and shall apply to--

   Struck: (1) contracts entered on or after that effective date; and

   Struck: (2) task or delivery orders awarded on or after that effective date, regardless of whether the contracts pursuant to which such task or delivery orders are awarded are entered before, on, or after the date of the enactment of this Act.

   Inserted: (3) Definitions.--In this subsection:

   Inserted: (A) The term "executive agency" has the meaning given that term in section 4 of the Office of Federal Procurement Policy Act (41 U.S.C. 403).

   Inserted: (B) The term "functions closely associated with inherently governmental functions" means the functions described in section 7.503(d) of the Federal Acquisition Regulation, or any successor regulation.

   Inserted: (b) Personal Conflicts of Interest.--

   Inserted: (1) Review of far regarding personal conflicts of interest.--Not later than 12 months after the date of the enactment of this Act, the Administrator for Federal Procurement Policy, in consultation with the Director of the Office of Government Ethics, shall review the Federal Acquisition Regulation to determine whether revisions to the Federal Acquisition Regulation are necessary to address personal conflicts of interest by contractor employees with respect to contracts other than contracts described in subsection (a)(1).

   Inserted: (2) Revisions of far.--If the Administrator determines pursuant to the review under paragraph (1) that revisions to the Federal Acquisition Regulation are necessary to address personal conflicts of interest described in that paragraph, the Administrator shall work with the Federal Acquisition Regulatory Council to prescribe appropriate revisions to the Federal Acquisition Regulation for that purpose.

   Inserted: (3) Report.--Not later than March 1, 2010, the Administrator shall submit to the appropriate committees of Congress a report setting forth the findings and determinations of the Administrator as a result of the review under paragraph (1), together with an assessment of any revisions to the Federal Acquisition Regulation that may be necessary to address personal conflicts of interest described in that paragraph.

   Inserted: (c) Organizational Conflicts of Interest.--

   Inserted: (1) Review of far regarding organizational conflicts of interest.--Not later than 12 months after the date of the enactment of this Act, the Administrator for Federal Procurement Policy shall review the Federal Acquisition Regulation to determine whether revisions to the Federal Acquisition Regulation are necessary to achieve sufficiently rigorous, comprehensive, and uniform government-wide policies to prevent and mitigate organizational conflicts of interest in Federal contracting.

   Inserted: (2) Revisions of far.--If the Administrator determines pursuant to the review under paragraph (1) that revisions to the Federal Acquisition Regulation are necessary to achieve the policies described in that paragraph, the Administrator shall work with the Federal Acquisition Regulatory Council to prescribe appropriate revisions to the Federal Acquisition Regulation for that purpose.

   Inserted: (3) Report.--Not later than March 1, 2010, the Administrator shall submit to the appropriate committees of Congress a report setting forth the findings and determinations of the Administrator as a result of the review under paragraph (1), together with an assessment of any revisions to the Federal Acquisition Regulation that may be necessary to achieve the policies described in that paragraph.

   Inserted: (d) Best Practices Regarding Conflicts of Interest.--The Administrator for Federal Procurement Policy shall, in consultation with the Director of the Office of Government Ethics, develop and maintain a repository of best practices relating to the prevention and mitigation of organizational and personal conflicts of interest in Federal contracting.

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   Inserted: (e) Appropriate Committees of Congress Defined.--In this section, the term "appropriate committees of Congress" means--

   Inserted: (1) the Committee on Armed Services and the Committee on Homeland Security and Governmental Affairs of the Senate; and

   Inserted: (2) the Committee on Armed Services and the Committee on Oversight and Government Reform of the House of Representatives.

   Original wording

   Strike section 832 and insert the following:

Read automatically from the Congressional Record. Check the original before relying on it.

As printed