Overseas Contractor Reform Act

Mr. Speaker, I rise in support of H.R. 5366, the Overseas Contracting Reform Act, which provides an important and necessary recourse for our government when

contractors violate federal law. Specifically, the legislation requires the automatic proposal for debarment of any contractor found to be in violation of the Foreign Corrupt Practices Act, FCPA, which prohibits American companies and individuals from unlawfully influencing foreign officials.

I commend the sponsor of this legislation, Representative Peter Welch of Vermont, for his work on this matter. Since the brutal shooting incident at Baghdad's Nisour Square in which guards employed by the private security contractor Blackwater Worldwide, now Xe Services, allegedly shot and killed 17 innocent and unarmed Iraqi civilians, I have worked to bring such contractors within the purview of U.S. law and to hold them accountable for their actions. Unfortunately, even after the Blackwater shooting gained considerable public attention, reports indicated that not only did contractors remain a significant part of the U.S. presence in Iraq and Afghanistan, but they also continued to serve in inappropriate roles such as conducting interrogations of suspected terrorists. All the while, the laws which govern them remain vague.

As many of my colleagues and I have noted for several years, there is an egregious lack of both accountability and transparency for such firms and their employees. Although the Federal Acquisition Regulation, FAR, enables government officials to initiate suspension and debarment proceedings where the contractor has committed an offense ``that seriously and directly affects the present responsibility of a government contractor or subcontractor,'' among other things, no official used this authority to initiate such proceedings with Blackwater. Moreover, as a recent Senate Armed Services Committee investigation underscores, Blackwater was able to secure new contracts by creating several dozen subsidiaries for the sole purpose of concealing its parent companies' identity. Contracting officers claim they weren't even aware that they were awarding contracts to a company under Blackwater's control.

It is clear that the existence of authority to debar under the FAR is, in itself, insufficient to trigger debarment proceedings, perhaps because agency officials are unwilling to initiate debarment proceedings even when just cause is shown. That is why H.R. 5366 is an important piece of legislation. It will provide that companies automatically be proposed for debarment if they are found to be in violation of the FCPA. The Department of Justice is investigating whether Blackwater employees bribed Iraqi officials to allow them to continue doing business in Iraq, an obvious violation of the FCPA. Under H.R. 5366, if Blackwater is found guilty, the firm will automatically be proposed for debarment.

Mr. Speaker, all loopholes for private security contractors working overseas should have been closed long ago. Contractors and their employees must be held accountable for their actions overseas, especially during war time. This is not just important for the America's reputation for upholding justice and the rule of law, but for the safety and security of our troops and civilians serving overseas. Failing to do so undermines American national security interests. I urge my colleagues to join me in voting for H.R. 5366.

Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 5366) to require the proposal for debarment from contracting with the Federal Government of persons violating the Foreign Corrupt Practices Act of 1977.

Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days in which to revise and extend their remarks.

I yield myself such time as I may consume.

Mr. Speaker, contractors have been tarnishing the name of our good country by bribing foreign officials with the very tax dollars our country pays them. In our effort to win the hearts and minds of the people of foreign countries, we must show that we take integrity and honesty seriously. As such, we must take action against those contractors who hinder our efforts and inappropriately utilize the money we pay them. H.R. 5366, the Overseas Contractor Reform Act, will provide the government with the means to appropriately respond to those contractors.

H.R. 5366 was introduced by my colleague, Representative Peter Welch, on May 20, 2010, and referred to the Committee on Oversight and Government Reform, where we worked hard to get this important legislation to the House floor.

This bill requires that any person convicted of violating the Foreign Corrupt Practices Act of 1977 be proposed for debarment from any further contracts or grants with the Federal Government within 30 days after final judgment of the violation. The bill defines ``final judgment'' as occurring when all appeals of the judgment have been determined or all the time for filing such appeals has expired, so there is no question regarding the person's guilt.

Additionally, this bill authorizes the head of a Federal agency to issue a waiver, allowing contracts or grants to be awarded to the contractors, but the agency head must justify the decision and report the waiver and accompanying justification to Congress within 30 days.

This bill also makes it Federal policy that no more contracts or grants should be awarded to any individuals or companies who violate the Foreign Corrupt Practices Act. This policy statement sends a strong message to all that such waste, fraud, and abuse will not be tolerated.

This bill helps fight waste of tax dollars, protects the image of the country, and helps ensure fair play in competition for contracts. H.R. 5366 is a common sense, good government bill, and I encourage my colleagues to join me in supporting it.

Mr. Speaker, I reserve the balance of my time.

Mr. Speaker, I urge my colleagues to join me in supporting this measure, and I yield back the balance of my time.

Mr. Speaker, on that I demand the yeas and nays.

Mr. Speaker, I yield myself such time as I may consume.

I rise today in support of H.R. 5366, the Overseas Contractor Reform Act. The Committee on Oversight and Government Reform over the years has uncovered numerous instances in which government continued doing business with bad actors. This legislation will augment the U.S. government's efforts to combat waste, fraud, and abuse in contracting. It will ensure that we are awarding contracts and grants only to parties with integrity.

The bill requires a Federal agency to propose for debarment from receiving any new grants or contracts a person or entity found in violation of the Foreign Corrupt Practices Act of 1977.

The Foreign Corrupt Practices Act makes it a crime to offer a bribe to a foreign official for the purpose of obtaining or retaining business from a foreign government.

Since the passage of the Foreign Corrupt Practices Act, the fraud section of the Department of Justice has prosecuted individuals and entities accused of bribing foreign officials. These parties are now subject to fines, and although proposed debarment was already a possible consequence, this bill sends the message that Congress, without question, desires agencies to take administrative action against parties convicted of violating the Foreign Corrupt Practices Act.

This bill also provides agencies with a modicum of flexibility. If the agency head finds it is in the best interest of the government to waive the requirement for proposed debarment, a waiver is permissible. However, the agency head must report the waiver to Congress and provide a justification.

Mr. Speaker, I urge my colleagues to support H.R. 5366.

Mr. Speaker, I have no further requests for time, and I yield back the balance of my time.

Mr. Speaker, in today's wars, military contractors play a larger role than ever before. As we have seen over the past decade, our laws have been inadequate to curb what became a free-for- all for contractors overseas. That is why I support efforts like this one, to define and reign in unacceptable and damaging contractor abuses.

In my own state of Oregon, 26 Oregon National Guardsmen have filed suit against war contractor KBR, formerly a subsidiary of Halliburton, alleging that KBR personnel knew a highly toxic chemical was present at Iraqi facilities in 2003, but that they waited months before bringing it to the attention of the U.S. military. By that time, unsuspecting members of the Oregon, Indiana, and West Virginia National Guard had already been exposed.

Even more troubling, if KBR is found to be at fault the company may never have to pay for its actions. A still-classified clause in KBR's contract may result in the U.S. Army--and U.S. taxpayers--paying for the harm done by contractors.

This is just one instance of past contractor actions having continued repercussions today. I will continue to work for swift congressional action that will hold contractors accountable, strengthen oversight and protect both our troops and the taxpayers.

I strongly support Mr. Welch's efforts here today, and those who help tackle this problem on behalf of our brave men and women in uniform.

Madam Speaker, on the afternoon of Wednesday, September 15, 2010, I could not be present for votes due to a commitment back in Michigan. Had I been present I would have voted the following.

House rollcall vote 521 on H.R. 2039--Congressional Made in America Promise Act, I would have voted ``yes.''

House rollcall vote 522 on H.R. 5873--To designate the facility of the United States Postal Service located at 218 North Milwaukee Street in Waterford, Wisconsin, as the ``Captain Rhett W. Schiller Post Office'', I would have voted ``yes.''

House rollcall vote 523 on H. Res. 1522--Expressing support for designation of the last week of September as National Hereditary Breast and Ovarian Cancer Week and the last Wednesday of September as National Previvor Day, I would have voted ``yes.''

House rollcall vote 524 on H.R. 5366--Overseas Contractor Reform Act, I would have voted ``yes.''

House rollcall vote 525 on H. Res. 1610--Expressing the sense of the House of Representatives regarding the terrorist attacks launched against the United States on September 11, 2001, I would have voted ``yes.''