To enhance transparency and accountability within the intelligence community for activities performed under Federal contracts, and for other purposes.

Summary: Transparency and Accountability in Intelligence Contracting Act of 2008 - Amends the National Security Act of 1947 to require the Director of National Intelligence (DNI) to prepare an annual assessment for such element of the intelligence community (IC) that assesses such element's use of private contractors and private contractor personnel. Requires each assessment to be submitted to the congressional intelligence committees.

Directs that each contract, subcontract, or task or delivery order entered into with an IC element shall require the contractor to provide to the IC element contracting officer certain information on the personnel performing contracting activities, including their training, the process used to hire the individuals, and the number of foreign nationals employed.

Prohibits the use of private contractors for the arrest, interrogation, detention, or transportation or transfer of persons under government custody or control.

Requires a report from the DNI to Congress describing the personal services activities performed by contractors across the IC, the impact of such contractors on the IC workforce, plans for conversion of contractor employment into government employment, and accountability mechanisms governing the performance of such contractors.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Transparency and Accountability in 
Intelligence Contracting Act of 2008''.

SEC. 2. ANNUAL SURVEY OF INTELLIGENCE COMMUNITY CONTRACTORS.

    (a) In General.--Title V of the National Security Act of 1947 (50 
U.S.C. 413 et seq.) is amended by inserting after section 506A the 
following new section:

``SEC. 506B. ANNUAL CONTRACTOR PERSONNEL LEVEL ASSESSMENTS FOR THE 
              INTELLIGENCE COMMUNITY.

    ``(a) Requirement To Provide.--The Director of National 
Intelligence shall, in consultation with the head of the element of the 
intelligence community concerned, prepare an annual assessment for such 
element of the intelligence community that assesses such element's use 
of private contractors and private contractor personnel.
    ``(b) Schedule.--Each assessment required by subsection (a) shall 
be submitted to the congressional intelligence committees each year 
along with the budget submitted by the President under section 1105 of 
title 31, United States Code.
    ``(c) Contents.--Each assessment required by subsection (a) 
submitted during a fiscal year shall contain, at a minimum, the 
following information for the element of the intelligence community 
concerned:
            ``(1) The total number and costs of contractors funded by 
        the element during the previous fiscal year.
            ``(2) The best estimate of the total number of personnel 
        working on the contracts funded by the element during the 
        previous fiscal year.
            ``(3) The best estimate of the number and costs of 
        contractors to be funded by the element for the upcoming fiscal 
        year.
            ``(4) The proposed numerical and percentage increase or 
        decrease of such costs of contracts as compared to the best 
        estimate of the costs of contracts of the current fiscal year.
            ``(5) The proposed numerical and percentage increase or 
        decrease of such costs of contracts as compared to the cost of 
        contracts, and the number of contracts, during the prior 5 
        fiscal years.
            ``(6) A written description of the types of activities 
        being performed by contractors.
            ``(7) A list of all contractors that have been the subject 
        of an investigation completed by the Inspector General of any 
        element of the intelligence community during the preceding 
        fiscal year, or are or have been the subject of an 
        investigation by such an Inspector General during the current 
        fiscal year, or are currently or have been during the previous 
        fiscal year the subject of a United States or foreign criminal 
        investigation in connection with activities performed under a 
        contract awarded by any element of the intelligence community, 
        as well as any charges filed in connection with the 
        investigation and the findings or disposition of the 
        investigation.
            ``(8) A statement by the Director of National Intelligence 
        that, based on current and projected funding, the element 
        concerned will have sufficient--
                    ``(A) training resources to support the anticipated 
                scope of contractor activity for the upcoming fiscal 
                year; and
                    ``(B) resources and infrastructure to support the 
                administration, management, and oversight of the 
                anticipated scope of contractor activity for the 
                upcoming fiscal year.''.
    (b) Clerical Amendment.--The table of contents in the first section 
of that Act is amended by inserting after the item relating to section 
506A the following new item:

``Sec. 506B. Annual contractor personnel level assessment for the 
                            intelligence community.''.

SEC. 3. TRANSPARENCY AND ACCOUNTABILITY IN INTELLIGENCE CONTRACTING.

    (a) Information on Activities To Be Performed.--Each covered 
contract shall require the contractor to provide to the contracting 
officer for the contract, not later than 5 days after award of the 
contract, the following information regarding activities performed 
under the contract:
            (1) The best estimate of the number of persons to be used 
        to perform such activities.
            (2) A description of how such persons are trained to carry 
        out tasks specified under the contract relating to such 
        activities.
            (3) A description of the process used to hire such persons, 
        including the method by which and the extent to which 
        background checks regarding such persons are conducted.
            (4) A description of each category of activity relating to 
        such functions required by the contract.
            (5) The best estimate of the number of foreign nationals to 
        be employed under the contract.
    (b) Updates.--The information provided under subsection (a) shall 
be updated during contract performance as necessary.
    (c) Information on Costs.--Each covered contract shall include the 
following requirements:
            (1) Upon award of the contract, the contractor shall 
        provide to the contracting officer cost estimates of salary, 
        benefits, insurance, materials, logistics, administrative 
        costs, and other costs of carrying out activities under the 
        contract.
            (2) Before contract closeout (other than closeout of a 
        firm, fixed price contract), the contractor shall provide to 
        the contracting officer a report on the actual costs of 
        carrying out activities under the contract, in the same 
        categories as provided under paragraph (1).
    (d) Information To Be Provided to Congress Upon Request.--The head 
of each element of the intelligence community shall make available to 
Congress any information provided under this section upon request by a 
Member or committee of Congress.

SEC. 4. PROHIBITION ON THE USE OF PRIVATE CONTRACTORS FOR ACTIVITIES 
              INVOLVING PERSONS UNDER THE CUSTODY OR CONTROL OF THE 
              UNITED STATES GOVERNMENT.

    (a) Notwithstanding any other provision of law, no executive 
department or agency shall award a contract for performance related to 
activities described in subsection (b).
    (b) Subsection (a) shall apply to any activity relating to the 
capture, custody, control, or other pertinent interaction with an 
individual who is a detainee or prisoner in the custody or under the 
effective control of the United States Government, including, with 
regard to such an individual--
            (1) arrest;
            (2) interrogation;
            (3) detention; or
            (4) transportation or transfer.
    (c) Subsection (b) shall not be construed to include the 
performance of work is related to language interpretation, so long as 
the work is strictly limited to language interpretation and occurs 
under the direct supervision of a United States Government personnel.
    (d) The President shall have six months following the date of the 
enactment of this Act to ensure compliance with subsection (a).

SEC. 5. REPORT ON THE USE OF PRIVATE CONTRACTORS FOR INTELLIGENCE 
              ACTIVITIES.

    (a) Requirement for Report.--Not later than 120 days following the 
date of the enactment of this Act, the Director of National 
Intelligence shall submit to Congress a report describing the personal 
services activities performed by contractors across the intelligence 
community, the impact of such contractors on the intelligence community 
workforce, plans for conversion of contractor employment into 
Government employment, and the accountability mechanisms that govern 
the performance of such contractors.
    (b) Content.--
            (1) In general.--The report submitted under subsection (a) 
        shall include--
                    (A) a description of any relevant regulations or 
                guidance issued by the Director of National 
                Intelligence or the head of an element of the 
                intelligence community relating to minimum standards 
                required regarding the hiring, training, security 
                clearance, and assignment of contract personnel and how 
                those standards may differ from those for Government 
                employees performing substantially similar functions;
                    (B) an identification of contracts where the 
                contractor is providing a substantially similar 
                functions to a Government employee;
                    (C) an assessment of costs incurred or savings 
                achieved by awarding contracts for the performance of 
                such functions referred to in subparagraph (B) instead 
                of using full-time employees of the elements of the 
                intelligence community to perform such functions;
                    (D) an assessment of the appropriateness of using 
                contractors to perform the activities described in 
                paragraph (2);
                    (E) an estimate of the number of contracts, and the 
                number of personnel working under such contracts, 
                related to the performance of activities described in 
                paragraph (2);
                    (F) a comparison of the compensation of contract 
                employees and Government employees performing 
                substantially similar functions;
                    (G) an analysis of the attrition of Government 
                personnel associated with the reliance on contractor 
                positions that provide substantially similar functions;
                    (H) an analysis of accountability mechanisms 
                available to each element of the intelligence 
                community, including regulations and provisions 
                included within services contracts;
                    (I) an analysis of procedures in use in the 
                intelligence community for conducting oversight of 
                contractors to ensure identification and prosecution of 
                criminal violations, financial waste, fraud, or other 
                abuses committed by contractors or contract personnel; 
                and
                    (J) an identification of best practices of 
                accountability mechanisms within services contracts.
            (2) Activities.--Activities described in this paragraph are 
        the following:
                    (A) Intelligence collection.
                    (B) Intelligence analysis.
                    (C) Covert actions.
                    (D) Conduct of electronic or physical surveillance 
                or monitoring of United States citizens in the United 
                States.
            (3) Form.--The report required under paragraph (1) shall be 
        submitted in unclassified form, but may include a classified 
        annex.

SEC. 6. DEFINITIONS.

    In this Act:
     (a) Intelligence Community.--The term ``intelligence community'' 
has the meaning given the term in section 3(4) of the National Security 
Act of 1947 (50 U.S.C. 401a(4)).
    (b) Element of the Intelligence Community.--The term ``element of 
the intelligence community'' means an element of the intelligence 
community listed in or designated under section 3(4) of the National 
Security Act of 1947 (50 U.S.C. 401a(4)).
    (c) Covered Contract.--The term ``covered contract'' means--
            (1) a prime contract with any agency or office that is part 
        of the intelligence community;
            (2) a subcontract at any tier under any prime contract with 
        an office or agency referred to in paragraph (1); or
            (3) a task order issued under a task or delivery order 
        contract entered into by an office or agency referred to in 
        paragraph (1);
if the contract, subcontract, or task order is valued at more than 
$1,000,000 and includes personal services activities to be performed 
either within or outside the United States.