To require the Secretary of Defense to debar from contracting with the Department of Defense any company found to have jeopardized the health or safety of Government personnel or found guilty of contract fraud, and for other purposes.

Summary: Safety in Defense Contracting Act - Requires the Secretary of Defense to debar from contracting with the Department of Defense (DOD) any defense contractor: (1) officially determined to have caused serious injury or death to any civilian or military personnel through gross negligence or reckless disregard for safety, or to have committed fraud; or (2) awarded a subcontract to a subcontractor officially determined to have caused or committed such actions. Directs the Secretary to also debar any subcontractor found to have caused or committed such actions.

Requires a five-year minimum period for such a debarment.

Authorizes a debarment waiver by the Secretary if it would jeopardize national security.

Directs the Secretary, in the case of any defense contractor receiving a level III corrective action request from the Defense Contract Management Agency in a fiscal year, to withhold any contract award or incentive fees for that fiscal year.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Safety in Defense Contracting Act''.

SEC. 2. REQUIREMENT FOR SECRETARY OF DEFENSE TO DEBAR COMPANIES FOUND 
              TO JEOPARDIZE HEALTH OR SAFETY OF GOVERNMENT PERSONNEL OR 
              FOUND GUILTY OF CONTRACT FRAUD.

    (a) Requirement To Debar.--
            (1) Prime contractors.--The Secretary of Defense shall 
        debar from contracting with the Department of Defense any 
        defense contractor--
                    (A) that has been determined, through a criminal, 
                civil, or administrative proceeding that results in a 
                disposition listed in subsection (f), in the 
                performance of a covered contract--
                            (i) to have caused serious injury or death 
                        to any civilian or military personnel of the 
                        Government through gross negligence or with 
                        reckless disregard for the safety of such 
                        personnel; or
                            (ii) to have committed fraud; or
                    (B) that awarded a subcontract under a covered 
                contract to a subcontractor that has been determined, 
                through a criminal, civil, or administrative proceeding 
                that results in a disposition listed in subsection (f), 
                in the performance of the subcontract--
                            (i) to have caused serious injury or death 
                        to any civilian or military personnel of the 
                        Government, through gross negligence or with 
                        reckless disregard for the safety of such 
                        personnel; or
                            (ii) to have committed fraud.
            (2) Subcontractors.--The Secretary of Defense shall debar 
        from contracting with the Department of Defense any 
        subcontractor under a covered contract with respect to which a 
        determination described in paragraph (1)(B) has been made. The 
        Secretary of Defense also shall require, as a condition of any 
        defense contract, that no subcontract may be awarded under the 
        contract to any subcontractor with respect to which a 
        determination described in paragraph (1)(B) has been made.
    (b) Definitions.--In this section:
            (1) The term ``defense contractor'' means a company awarded 
        a covered contract.
            (2) The term ``covered contract'' means a contract awarded 
        by the Department of Defense in an amount in excess of $500,000 
        for the procurement of goods or services.
    (c) Applicability of Debarment.--A debarment required by subsection 
(a) shall apply only with respect to contracts sought by an offeror for 
the same or similar goods or services as those provided or performed 
under the contract or subcontract with respect to which a determination 
described in subparagraph (A) or (B) of subsection (a)(1) was made.
    (d) Period of Debarment.--The debarment required by subsection (a) 
shall apply for a period of not less than five years after the date of 
the determination described in subsection (a)(1).
    (e) Waiver.--The debarment required by subsection (a) may be waived 
by the Secretary of Defense on a case-by-case basis if the Secretary 
finds that the debarment would jeopardize national security.
    (f) List of Dispositions in Criminal, Civil, or Administrative 
Proceedings.--For purposes of subsection (a), the dispositions listed 
in this subsection are as follows:
            (1) In a criminal proceeding, a conviction.
            (2) In a civil proceeding, a finding of fault and liability 
        that results in the payment of a monetary fine, penalty, 
        reimbursement, restitution, or damages of $5,000 or more.
            (3) In an administrative proceeding, a finding of fault and 
        liability that results in--
                    (A) the payment of a monetary fine or penalty of 
                $5,000 or more; or
                    (B) the payment of a reimbursement, restitution, or 
                damages in excess of $100,000.
            (4) To the maximum extent practicable and consistent with 
        applicable laws and regulations, in a criminal, civil, or 
        administrative proceeding, a disposition of the matter by 
        consent or compromise with an acknowledgment of fault by the 
        person if the proceeding could have led to any of the outcomes 
        specified in paragraph (1), (2), or (3).

SEC. 3. WITHHOLDING OF CERTAIN CONTRACT FEES.

    In the case of any defense contractor that receives a level III 
corrective action request from the Defense Contract Management Agency 
in a fiscal year, the Secretary of Defense shall withhold any award or 
incentive fees on the contract for that fiscal year. With respect to 
any such fees already paid to the contractor during that fiscal year, 
the Secretary shall require the contractor to pay back the fees.