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[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3345 Reported in House (RH)]

                                                 Union Calendar No. 501
113th CONGRESS
  2d Session
                                H. R. 3345

                          [Report No. 113-669]

 To amend title 31, United States Code, to consolidate suspension and 
               debarment offices, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                            October 28, 2013

 Mr. Issa (for himself, Mr. Cummings, Mr. Mica, Mr. Chaffetz, and Ms. 
   Speier) introduced the following bill; which was referred to the 
              Committee on Oversight and Government Reform

                           December 12, 2014

Reported with amendments, committed to the Committee of the Whole House 
          on the State of the Union, and ordered to be printed
  [Omit the part struck through and insert the part printed in italic]

_______________________________________________________________________

                                 A BILL

 
 To amend title 31, United States Code, to consolidate suspension and 
               debarment offices, and for other purposes.

 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Stop Unworthy 
Spending Act'' or the ``SUSPEND Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Consolidation of suspension and debarment offices.
Sec. 3. Interagency Suspension and Debarment Committee.
Sec. 4. Single case management system.
Sec. 5. Single regulation for procurement and nonprocurement programs.
Sec. 6. Government Accountability Office review.
Sec. 7. Coordination of remedies for fraud and corruption related to 
                            procurement and grant activities.
Sec. 8. Transfer, redesignation, and amendment of other provision of 
                            law relating to debarment and suspension.
Sec. 9. Definitions.
Sec. 10. Authorization of appropriations.
Sec. 11. Effective date.

SEC. 2. CONSOLIDATION OF SUSPENSION AND DEBARMENT OFFICES.

    (a) Establishment of Board of Suspension and Debarment.--
            (1) In general.--Subtitle V of title 31, United States 
        Code, is amended by inserting after chapter 63 the following 
        new chapter:

                 ``CHAPTER 64--SUSPENSION AND DEBARMENT

``Sec.
``6401. Board of Suspension and Debarment.
``6402. Interagency Suspension and Debarment Committee.
``6403. Single regulation for suspension and debarment for procurement 
                            and nonprocurement programs.
``6404. Uniform suspension, debarment, or exclusion from procurement or 
                            nonprocurement activity.
``Sec. 6401. Board of Suspension and Debarment
    ``(a) Establishment.--There is established in the General Services 
Administration a board for suspension and debarment to be known as the 
Board of Suspension and Debarment (in this section referred to as the 
`Board').
    ``(b) Purposes.--The purposes of the Board are to serve as a 
centralized body to manage all executive agency suspension and 
debarment activities and improve the suspension and debarment system 
through--
            ``(1) the transparent and efficient handling of cases;
            ``(2) the effective oversight of the Governmentwide 
        database containing the list of all excluded parties ineligible 
        for Federal programs pursuant to Executive Orders No. 12549 and 
        No. 12689, including oversight to ensure receipt of information 
        from other agencies and to ensure timeliness, accuracy, and 
        completeness of the database;
            ``(3) the consistent and fair treatment of all persons and 
        entities subject to suspension or debarment proceedings, 
        including small businesses with limited resources; and
            ``(4) active engagement with remedy coordination officials 
        (as defined in section 2307(i)(10) of title 10 and section 4506 
        of title 41) within executive agencies for efficient referral 
        of contractors, grantees, or other recipients of Federal 
        financial assistance suspected of committing wrongful actions 
        or repeatedly performing poorly.
    ``(c) Effect of Determinations of Board.--
            ``(1) Conclusive on governmentwide basis.--The 
        determination by the Board on whether or not to debar or 
        suspend a contractor, grantee, or other recipient of Federal 
        financial assistance is conclusive on a Governmentwide basis. 
        No other agency may take a contrary suspension and debarment 
        action on a Governmentwide basis with respect to the same 
        contractor, grantee, or other recipient based on the facts and 
        circumstances in the administrative record considered by the 
        Board.
            ``(2) Consideration of new or additional evidence.--In 
        considering any new or additional evidence of nonresponsibility 
        of a contractor, grantee, or other recipient of Federal 
        financial assistance not previously considered by the Board, an 
        agency, in determining whether to award another grant or 
        contract or other Federal financial assistance to such 
        contractor, grantee, or other recipient, may consider the 
        cumulative effect of the facts and circumstances previously 
        considered by the Board.
    ``(d) Membership.--
            ``(1) Appointment.--The Board shall consist of members 
        appointed by the Administrator of General Services (in 
        consultation with the Administrator for Federal Procurement 
        Policy) from a register of applicants maintained by the 
        Administrator of General Services, in accordance with rules 
        issued by the Administrator of General Services (in 
        consultation with the Administrator for Federal Procurement 
        Policy) for establishing and maintaining a register of eligible 
        applicants and selecting members. The Administrator of General 
        Services shall appoint a member without regard to political 
        affiliation and solely on the basis of the professional 
        qualifications required to perform the duties and 
        responsibilities of a member.
            ``(2) Chair.--The Administrator of General Services shall 
        designate one member of the Board to serve as Chair of the 
        Board. The position of Chair of the Board shall be a Senior 
        Executive Service position (as defined by section 3132(a)(2) of 
        title 5).
            ``(3) Removal.--The Administrator of General Services, with 
        the consent of the Administrator for Federal Procurement 
        Policy, may remove the Chair or any other member of the Board.
    ``(e) Sharing of Resources.--The Administrator of General Services 
shall provide to the Board such administrative resources as are 
necessary for the Board to carry out its functions. In carrying out 
this subsection, the Administrator may provide for the sharing of 
administrative resources of the Civilian Board of Contract Appeals, 
such as the Board's information technology infrastructure, case 
management system, legal resources, and facilities.
    ``(f) Participation by Additional Entities.--The Board may enter 
into an agreement with any other entity that receives Federal funds for 
the Board to perform suspension and debarment activities on behalf of 
the entity.
    ``(g) Annual Report to Congress.--
            ``(1) In general.--Not later than October 30 of each year, 
        the Chair of the Board shall submit to the relevant 
        congressional committees a report containing the following:
                    ``(A) A summary of the activities and 
                accomplishments of the Board in the Governmentwide 
                suspension and debarment system, including the total 
                number of referrals, timeliness of case disposition, 
                and breakdown of discretionary and nondiscretionary 
                cases.
                    ``(B) The number and summary of agency head 
                determinations, if any, that allowed a suspended or 
                debarred contractor, grantee, or other recipient of 
                Federal financial assistance to receive new Federal 
                funds.
                    ``(B) (C) Recommendations to improve the suspension 
                and debarment system.
            ``(2) Form of report.--The Chair of the Board may combine 
        the report with the report required by section 6402(c)(7) of 
        this title.
    ``(h) Definitions.--In this section:
            ``(1) Executive agency.--The term `executive agency' has 
        the meaning provided in section 133 of title 41.
            ``(2) Relevant congressional committees.--The term 
        `relevant congressional committees' means each of the 
        following:
                    ``(A) The Committee on Oversight and Government 
                Reform of the House of Representatives.
                    ``(B) The Committee on Homeland Security and 
                Governmental Affairs of the Senate.
            ``(3) Interagency suspension and debarment committee.--The 
        term `Interagency Suspension and Debarment Committee' means the 
        committee established under section 6402 of this title.''.
            (2) Deadline for appointment of board members.--The members 
        of the Board of Suspension and Debarment under section 6401 of 
        title 31, United States Code, as added by paragraph (1), shall 
        be appointed not later than one year after the date of the 
        enactment of this Act.
            (3) Clerical amendment.--The table of chapters at the 
        beginning of subtitle V of title 31, United States Code, is 
        amended by inserting after the item relating to chapter 63 the 
        following new item:

``64. Suspension and Debarment..............................    6401''.
    (b) Termination of Executive Agency Suspension and Debarment 
Offices.--
            (1) In general.--Except as provided in paragraphs (2) and 
        (3), effective on October 1, 2016, the suspension and debarment 
        office or function in each executive agency shall terminate.
            (2) Waivers.--
                    (A) Required waivers.--Notwithstanding paragraph 
                (1), the Director of the Office of Management and 
                Budget shall grant a waiver to any executive agency 
                listed in section 901(b) of title 31, United States 
                Code, or section 102 of title 5, other than the General 
                Services Administration, that has demonstrated the 
                existence of the following within the agency:
                            (i) A dedicated suspension and debarment 
                        program and staff.
                            (ii) Detailed agency-specific policies and 
                        procedures relating to suspension and 
                        debarment.
                            (iii) Practices that encourage an active 
                        suspension and debarment referral process.
                            (iv) In the case of an agency with multiple 
                        bureaus, offices, or subordinate organizations, 
                        a consolidated suspension and debarment program 
                        with only one individual with the title and 
                        designation of ``Suspension and Debarment 
                        Officer'' for the entire agency.
                            (v) Average annual disposition of 
                        discretionary suspension and debarment cases of 
                        50 or more, regardless of the outcome, during 
                        the three preceding fiscal years.
                    (B) Length of waiver.--A waiver under this 
                paragraph shall be for five years and may be renewed 
                more than once.
            (3) Small business administration.--Notwithstanding 
        paragraphs (1) and (2), the Small Business Administration shall 
        maintain its independent authority and function relating to 
        suspension and debarment pursuant to section 16(d) of the Small 
        Business Act (15 U.S.C. 645). Any other suspension and 
        debarment activities unrelated to such section 16(d) shall 
        terminate in accordance with paragraph (1).
    (c) Guidance.--Within 6 months after the date of the enactment of 
this Act, the Director of the Office of Management and Budget, in 
consultation with the Chief Acquisition Officers Council, shall issue 
guidance addressing the scope and operation of the Board of Suspension 
and Debarment. The guidance shall address, at a minimum, the following:
            (1) The size, structure, and organization of the Board to 
        efficiently manage all executive agency suspension and 
        debarment actions.
            (2) Procedures for appointment of the Chair of the Board, 
        including appropriate instructions to appoint without regard to 
        political affiliation and solely on the basis of the 
        professional qualifications required to perform the duties and 
        responsibilities of the Chair of the Board.
            (3) Procedures for handling new and existing suspension and 
        debarment cases to accomplish timely transfer of all functions 
        to the Board.

SEC. 3. INTERAGENCY SUSPENSION AND DEBARMENT COMMITTEE.

    (a) Establishment.--Chapter 64 of title 31, United States Code, as 
inserted by section 2(a) of this Act, is further amended by adding at 
the end the following new section:
``Sec. 6402. Interagency Suspension and Debarment Committee
    ``(a) Establishment.--There is established the Interagency 
Suspension and Debarment Committee (in this section referred to as the 
`Interagency Committee' which shall replace the committee constituted 
under sections 4 and 5 of Executive Order No. 12549.
    ``(b) Chair and Vice Chairs.--
            ``(1) Chair.--The Administrator for Federal Procurement 
        Policy shall serve as Chair of the Interagency Committee.
            ``(2) Vice chairs.--There are at least 2 Vice Chairs of the 
        Interagency Committee. The Chair of the Board of Suspension and 
        Debarment shall serve as a Vice Chair. The Secretary of Defense 
        shall designate one official from the Department of Defense to 
        serve as a Vice Chair.
    ``(c) Duties.--The Interagency Committee shall--
            ``(1) resolve issues regarding which of several Federal 
        agencies is the lead agency having responsibility to initiate 
        suspension or debarment proceedings, including with respect to 
        contracts in connection with contingency operations;
            ``(2) coordinate actions among interested agencies with 
        respect to such action;
            ``(3) encourage and assist Federal agencies in entering 
        into cooperative efforts to pool resources and achieve 
        operational efficiencies in the Governmentwide suspension and 
        debarment system;
            ``(4) recommend to the Office of Management and Budget 
        changes to the Government suspension and debarment system and 
        its rules, if such recommendations are approved by a majority 
        of the Interagency Committee;
            ``(5) authorize the Office of Management and Budget to 
        issue guidelines that implement those recommendations;
            ``(6) authorize the Chair of the Interagency Committee to 
        establish subcommittees as appropriate to best enable the 
        Interagency Committee to carry out its functions; and
            ``(7) not later than October 30 of each year, submit to 
        Congress an annual report on--
                    ``(A) the progress and efforts to improve the 
                suspension and debarment system;
                    ``(B) member agencies' active participation in the 
                Interagency Committee's work; and
                    ``(C) a summary of each agency's activities and 
                accomplishments in the Governmentwide suspension and 
                debarment system, including the total number of 
                referrals, timeliness of case disposition, and 
                breakdown of discretionary and nondiscretionary cases.; 
                and
                    ``(D) The number and summary of agency head 
                determinations, if any, that allowed a suspended or 
                debarred contractor, grantee, or other recipient of 
                Federal financial assistance to receive new Federal 
                funds.
    ``(d) Definition.--In this section, the term `contingency 
operation' has the meaning given that term in section 101(a)(13) of 
title 10.''.
    (b) Conforming Repeal of Superseded Provision.--Section 873 of 
Public Law 110-417 (31 U.S.C. 6101 note) is hereby repealed. The table 
of contents contained in section 2 of Public Law 110-417, and at the 
beginning of title VIII of such public law, is amended by striking the 
item relating to section 873.

SEC. 4. SINGLE CASE MANAGEMENT SYSTEM.

    (a) Requirement To Establish System.--Not later than one year after 
the date of the enactment of this Act, the Administrator for General 
Services (in consultation with the Administrator for Federal 
Procurement Policy) shall establish and maintain a Web-based suspension 
and debarment case management system for use by the Board of Suspension 
and Debarment and appropriate executive agency officials having 
authority over suspension and debarment.
    (b) Requirement for Use of System.--The head of each executive 
agency shall ensure that all cases referred to either the Board or the 
agency's suspension and debarment office (in the case of an agency 
granted a waiver under section 2(b)(2)) are logged into the case 
management system and that the case status and the name of the employee 
handling the case are updated at least once each month.
    (c) Availability of Information.--Any pre-decisional information 
related to a suspension or debarment case, including the names of the 
entities or individuals referred to, shall not be made public unless 
the Chair of the Board or the suspension and debarment official of an 
executive agency granted a waiver under section 2(b)(2) determines that 
the release of such information is necessary to protect the interest of 
the Government.
    (d) Executive Agency Defined.--In this section, the term 
``executive agency'' has the meaning provided in section 133 of title 
41, United States Code.

SEC. 5. SINGLE REGULATION FOR PROCUREMENT AND NONPROCUREMENT PROGRAMS.

    (a) Single Regulation Required.--Chapter 64 of title 31, United 
States Code, as inserted by section 2(a) of this Act, is further 
amended by adding at the end the following new section:
``Sec. 6403. Single regulation for suspension and debarment for 
              procurement and nonprocurement programs
    ``(a) Single Regulation.--The Director of the Office of Management 
and Budget shall maintain one generally applicable regulation on 
suspension and debarment for procurement and nonprocurement programs.
    ``(b) Requirements.--
            ``(1) In general.--The regulation maintained pursuant to 
        subsection (a) shall provide, at a minimum, for the procedures 
        and other requirements set forth in paragraphs (2) through (8).
            ``(2) Advance notice of adverse action.--The regulation 
        shall provide procedures for the Board to provide advance 
        notice of adverse action before any adverse action may be taken 
        against a private entity or individual, unless the Chair of the 
        Board of Suspension and Debarment or the suspension and 
        debarment officer of an executive agency granted a waiver under 
        section 2(b)(2) of the SUSPEND Act determines that an expedient 
        action is necessary to protect the interest of the Government.
            ``(3) Transparent handling of cases.--The regulation shall 
        provide procedures for transparent handling of all cases, 
        including public availability of--
                    ``(A) the outcome of all referred cases, including 
                the rationale for the decision to take or not take an 
                adverse action; and
                    ``(B) the administrative agreements entered into by 
                the Government in order to resolve a suspension or 
                debarment proceeding.
        <DELETED>    ``(4) Timely referrals.--The regulation shall 
        provide procedures to strengthen timely referral of cases, 
        including the role of the agency remedy coordination official 
        (as required in section 7 of the SUSPEND Act).</DELETED>
            ``(4) Timely referrals and processing of cases.--
                    ``(A) The regulation shall provide procedures to 
                strengthen timely referrals of cases, including--
                            ``(i) the role of the agency remedy 
                        coordination official to act upon cases brought 
                        to such official's attention in a timely manner 
                        (as required in section 7 of the SUSPEND Act); 
                        and
                            ``(ii) requirements for the Board or the 
                        agency suspension and debarment office to 
                        review the sufficiency of the information in 
                        the referred cases and to notify the agency 
                        remedy coordination official and cognizant 
                        Inspector General (if the case is originated 
                        from the Office of Inspector General) within 30 
                        days after the initial referral date for any 
                        additional information if needed.
                    ``(B) The regulation shall require all cases to be 
                disposed of within 6 months after the initial referral 
                date, unless the Chair of the Board or the agency 
                suspension and debarment officer provides a written 
                explanation and estimated timeline to the agency remedy 
                coordination official and cognizant Inspector General 
                (if the case is originated from the Office of Inspector 
                General). Such written explanation shall be updated 
                every 3 months until the final resolution of the case.
            ``(5) Consistent standards and procedures.--The regulation 
        shall provide procedures to ensure consistent standards and 
        procedures that treat all alleged violators fairly and 
        expeditiously, including small businesses with limited legal 
        resources.
            ``(6) Repeated failure to perform.--The regulation shall 
        provide procedures to strengthen the identification and 
        referral (for suspension or debarment consideration) of 
        contractors and grantees that repeatedly fail to perform.
            ``(7) Contingency procedures.--The regulation shall provide 
        procedures for an expedited review process to handle contract 
        or grant fraud in a non-traditional or time-sensitive 
        environment, either in a military or non-military setting.''.
    (b) Requirement and Deadline To Combine Regulations.--Not later 
than 1 year after the date of the enactment of this Act, the Director 
of the Office of Management and Budget shall combine the separate 
suspension and debarment regulations for procurement and nonprocurement 
programs into one generally applicable regulation.

SEC. 6. GOVERNMENT ACCOUNTABILITY OFFICE REVIEW.

    (a) Review.--The Comptroller General of the United States shall 
review and assess the effectiveness in meeting the requirements of this 
Act and the amendments made by this Act of--
            (1) the Board of Suspension and Debarment;
            (2) the suspension and debarment office of each executive 
        agency granted a waiver under section 2(b)(2)  and the merits 
        of any such waiver; and
            (3) the case management system established under section 4.
    (b) Report.--Not later than 2 years after the establishment of the 
Board of Suspension and Debarment, the Comptroller General shall submit 
to the relevant congressional committees a report containing--
            (1) the findings of the review and assessment required by 
        subsection (a); and
            (2) recommendations to improve the Governmentwide 
        suspension and debarment system, including identification and 
        assessment of the efficiency of agency-specific requirements 
        that are unnecessary or inconsistent with the Governmentwide 
        system.

SEC. 7. COORDINATION OF REMEDIES FOR FRAUD AND CORRUPTION RELATED TO 
              PROCUREMENT AND GRANT ACTIVITIES.

    (a) Guidance Required.--Within 6 months after the date of the 
enactment of this Act, the head of each executive agency and the 
Inspector General of the agency shall jointly issue guidance that 
establishes policies, procedures, and responsibilities for the 
agencywide coordination of criminal, civil, contractual, and 
administrative remedies stemming from investigations of fraud or 
corruption related to procurement and grant activities.
    (b) Matters Covered.--
            (1) Coordination.--For each significant investigation of 
        fraud or corruption related to procurement or grant activities 
        affecting an executive agency, the guidance under subsection 
        (a) shall require that the remedy coordination official of the 
        agency be promptly informed and appropriately empowered to 
        carry out the requirements of this section.
            (2) Role of remedy coordination official.--The remedy 
        coordination official of the agency shall--
                    (A) ensure that all appropriate contracting and 
                grant officials, officials of the Office of Inspector 
                General of the agency, and officials of the Department 
                of Justice are kept informed about all possible 
                criminal, civil, contractual, and administrative 
                remedies, and that appropriate remedies (including 
                parallel criminal, civil, regulatory, contractual, and 
                administrative proceedings) are pursued expeditiously;
                    (B) ensure timely preparation and submission of 
                suspension and debarment case files by the Office of 
                Inspector General of the agency or appropriate agency 
                officials; and
                    (C) serve as a primary point of contact on behalf 
                of the executive agency for the Board of Suspension and 
                Debarment or the agency suspension and debarment 
                office, as applicable, throughout the review of the 
                referred cases.
            (3) Contractual or administrative remedies.--The guidance 
        under subsection (a) shall require that, in appropriate cases 
        of fraud or corruption related to procurement or grant 
        activities affecting the agency, and with advance notice to all 
        necessary officials, contractual or administrative remedies be 
        taken before final resolution of any criminal or civil case.

SEC. 8. TRANSFER, REDESIGNATION, AND AMENDMENT OF OTHER PROVISION OF 
              LAW RELATING TO DEBARMENT AND SUSPENSION.

    (a) Transfer, Redesignation, and Amendment of Section 2455 of 
Public Law 103-355.--Section 2455 of Public Law 103-355 (31 U.S.C. 6101 
note) is hereby--
            (1) transferred to the end of chapter 64 of title 31, 
        United States Code, as inserted by section 2(a) of this Act and 
        amended by preceding provisions of this Act;
            (2) redesignated as section 6404; and
            (3) amended--
                    (A) in subsection (c)(1), by striking ``section 
                35(c) of the Office of Federal Procurement Policy Act 
                (41 U.S.C. 431(c))'' and inserting ``section 104 of 
                title 41''; and
                    (B) in subsection (c)(3), by striking ``title 5, 
                United States Code'' and inserting ``title 5''.
    (b) Clerical Amendments.--
            (1) The heading of section 6404 of title 31, United States 
        Code, as transferred by subsection (a), is amended to read as 
        follows:
``Sec. 6404. Uniform suspension, debarment, or exclusion from 
              procurement or nonprocurement activity''.
            (2) The table of contents contained in section 2 of Public 
        Law 103-355 is amended by striking the item relating to section 
        2455.
    (c) Conforming Amendment.--Section 8902a(b)(5) of title 5, United 
States Code, is amended by striking ``section 2455 of the Federal 
Acquisition Streamlining Act of 1994'' and inserting ``section 6404 of 
title 31''.

SEC. 9. DEFINITIONS.

    In this Act:
            (1) Executive agency.--The term ``executive agency'' has 
        the meaning provided in section 133 of title 41, United States 
        Code.
            (2) Relevant congressional committees.--The term ``relevant 
        congressional committees'' means each of the following:
                    (A) The Committee on Oversight and Government 
                Reform of the House of Representatives.
                    (B) The Committee on Homeland Security and 
                Governmental Affairs of the Senate.

SEC. 10. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated $2,000,000 for each of 
fiscal years 2015 through 2021--
            (1) to carry out the functions of the Board of Suspension 
        and Debarment established under section 6401 of title 31, 
        United States Code (as added by section 2), that are in 
        addition to functions already carried out by personnel of the 
        General Services Administration as of October 1, 2013; and
            (2) for implementation of the case management system 
        required under section 4.

SEC. 11. EFFECTIVE DATE.

    This Act, and the amendments made by this Act, shall take effect on 
October 1, 2014.
                                                 Union Calendar No. 501

113th CONGRESS

  2d Session

                               H. R. 3345

                          [Report No. 113-669]

_______________________________________________________________________

                                 A BILL

 To amend title 31, United States Code, to consolidate suspension and 
               debarment offices, and for other purposes.

_______________________________________________________________________

                           December 12, 2014

Reported with amendments, committed to the Committee of the Whole House 
          on the State of the Union, and ordered to be printed
```