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[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 234 Introduced in Senate (IS)]

<DOC>

115th CONGRESS
  1st Session
                                 S. 234

     To provide incentives for businesses to keep jobs in America.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                            January 24, 2017

 Mr. Donnelly (for himself, Mrs. Gillibrand, and Mr. Brown) introduced 
the following bill; which was read twice and referred to the Committee 
                               on Finance

_______________________________________________________________________

                                 A BILL

 
     To provide incentives for businesses to keep jobs in America.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``End Outsourcing Act''.

SEC. 2. OUTSOURCING STATEMENT IN WORKER ADJUSTMENT AND RETRAINING 
              NOTICE.

    (a) Outsourcing Statement.--Section 3 of the Worker Adjustment and 
Retraining Notification Act (29 U.S.C. 2102) is amended by adding at 
the end the following:
    ``(e) Outsourcing Statement.--
            ``(1) In general.--For purposes of subsection (a), the 
        employer shall include an outsourcing statement in the notice 
        described in that subsection. The outsourcing statement shall 
        specify whether part or all of the positions held by affected 
        employees covered by subsection (a) will be moved to a country 
        outside the United States, regardless of whether the positions 
        are moved within the business enterprise involved or to another 
        business enterprise. The employer shall make the determination 
        of whether the positions are being so moved in accordance with 
        regulations issued by the Secretary. The employer shall serve 
        the notice as required under subsection (a) and submit the 
        notice to the Secretary of Labor.
            ``(2) List.--Not less often than annually, the Secretary 
        shall publish and make available on the website of the 
        Department of Labor, a list including each employer who--
                    ``(A) has included an outsourcing statement in a 
                notice under paragraph (1); or
                    ``(B) has incurred liability under section 5, in 
                part or in whole, because the employer ordered a plant 
                closing or mass layoff without having served a notice 
                that is required, under this section, to include an 
                outsourcing statement.''.
    (b) Implementation Report.--The Worker Adjustment and Retraining 
Notification Act is amended by inserting after section 10 (29 U.S.C. 
2109) the following:

``SEC. 10A. IMPLEMENTATION STUDY.

    ``(a) Study.--The Comptroller General of the United States shall 
conduct a study of the implementation of section 3(e) of the Worker 
Adjustment and Retraining Notification Act (29 U.S.C. 2102(e)) by the 
Department of Labor.
    ``(b) Report.--Not later than 3 years after the date of enactment 
of this Act, the Comptroller General shall submit to the appropriate 
committees of Congress a report containing the results of the study.''.

SEC. 3. DENIAL OF DEDUCTION FOR OUTSOURCING EXPENSES.

    (a) In General.--Part IX of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 is amended by adding at the end the 
following new section:

``SEC. 280I. OUTSOURCING EXPENSES.

    ``(a) In General.--No deduction otherwise allowable under this 
chapter shall be allowed for any specified outsourcing expense.
    ``(b) Specified Outsourcing Expense.--For purposes of this 
section--
            ``(1) In general.--The term `specified outsourcing expense' 
        means--
                    ``(A) any eligible expense paid or incurred by the 
                taxpayer in connection with the elimination of any 
                business unit of the taxpayer (or of any member of any 
                expanded affiliated group in which the taxpayer is also 
                a member) located within the United States, and
                    ``(B) any eligible expense paid or incurred by the 
                taxpayer in connection with the establishment of any 
                business unit of the taxpayer (or of any member of any 
                expanded affiliated group in which the taxpayer is also 
                a member) located outside the United States,
        if such establishment constitutes the relocation of the 
        business unit so eliminated. For purposes of the preceding 
        sentence, a relocation shall not be treated as failing to occur 
        merely because such elimination occurs in a different taxable 
        year than such establishment.
            ``(2) Eligible expenses.--The term `eligible expenses' 
        means--
                    ``(A) any amount for which a deduction is allowed 
                to the taxpayer under section 162, and
                    ``(B) permit and license fees, lease brokerage 
                fees, equipment installation costs, and, to the extent 
                provided by the Secretary, other similar expenses.
        Such term does not include any compensation which is paid or 
        incurred in connection with severance from employment and, to 
        the extent provided by the Secretary, any similar amount.
            ``(3) Business unit.--The term `business unit' means--
                    ``(A) any trade or business, and
                    ``(B) any line of business, or functional unit, 
                which is part of any trade or business.
            ``(4) Expanded affiliated group.--The term `expanded 
        affiliated group' means an affiliated group as defined in 
        section 1504(a), determined without regard to section 
        1504(b)(3) and by substituting `more than 50 percent' for `at 
        least 80 percent' each place it appears in section 1504(a). A 
        partnership or any other entity (other than a corporation) 
        shall be treated as a member of an expanded affiliated group if 
        such entity is controlled (within the meaning of section 
        954(d)(3)) by members of such group (including any entity 
        treated as a member of such group by reason of this paragraph).
            ``(5) Operating expenses not taken into account.--Any 
        amount paid or incurred in connection with the ongoing 
        operation of a business unit shall not be treated as an amount 
        paid or incurred in connection with the establishment or 
        elimination of such business unit.
    ``(c) Special Rules.--
            ``(1) Application to deductions for depreciation and 
        amortization.--In the case of any portion of a specified 
        outsourcing expense which is not deductible in the taxable year 
        in which paid or incurred, such portion shall neither be 
        chargeable to capital account nor amortizable.
            ``(2) Possessions treated as part of the united states.--
        For purposes of this section, the term `United States' shall be 
        treated as including each possession of the United States 
        (including the Commonwealth of Puerto Rico and the Commonwealth 
        of the Northern Mariana Islands).
    ``(d) Regulations.--The Secretary shall prescribe such regulations 
or other guidance as may be necessary or appropriate to carry out the 
purposes of this section, including regulations which provide (or 
create a rebuttable presumption) that certain establishments of 
business units outside the United States will be treated as relocations 
(based on timing or such other factors as the Secretary may provide) of 
business units eliminated within the United States.''.
    (b) Limitation on Subpart F Income of Controlled Foreign 
Corporations Determined Without Regard to Specified Outsourcing 
Expenses.--Subsection (c) of section 952 of such Code is amended by 
adding at the end the following new paragraph:
            ``(4) Earnings and profits determined without regard to 
        specified outsourcing expenses.--For purposes of this 
        subsection, earnings and profits of any controlled foreign 
        corporation shall be determined without regard to any specified 
        outsourcing expense (as defined in section 280I(b)).''.
    (c) Clerical Amendment.--The table of sections for part IX of 
subchapter B of chapter 1 of such Code is amended by adding at the end 
the following new item:

``Sec. 280I. Outsourcing expenses.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to amounts paid or incurred after the date of the enactment of 
this Act.

SEC. 4. DENIAL OF CERTAIN DEDUCTIONS AND ACCOUNTING METHODS FOR 
              OUTSOURCING EMPLOYERS.

    (a) In General.--Part IX of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 is amended by adding at the end the 
following new section:

``SEC. 280J. LIMITATIONS FOR OUTSOURCING EMPLOYERS.

    ``(a) In General.--During the disallowance period, an applicable 
taxpayer--
            ``(1) shall not be allowed any deduction under section 199 
        for any income of the taxpayer,
            ``(2) may not use the method provided in section 472(b) in 
        inventorying goods,
            ``(3) may not use the lower of cost or market method of 
        determining inventories for purposes of determining income, and
            ``(4) shall not be allowed any deduction under section 163 
        for interest paid or accrued on indebtedness.
    ``(b) Applicable Taxpayer.--For purposes of subsection (a), the 
term `applicable taxpayer' means a taxpayer which--
            ``(1) during the taxable year, has served written notice 
        under subsection (a) of section 3 of the Worker Adjustment and 
        Retraining Notification Act which includes an outsourcing 
        statement described in subsection (e) of such section, and
            ``(2) the cumulative employment loss (excluding any part-
        time employees) for positions at facilities owned by such 
        taxpayer which will be moved to a country outside of the United 
        States, as determined pursuant to any outsourcing statements 
        served by such taxpayer during such taxable year, exceeds 50 
        employees.
    ``(c) Disallowance Period.--For purposes of subsection (a), the 
disallowance period is the period of 3 taxable years after the taxable 
year in which the statements described in subsection (b)(2) are 
required to be served.
    ``(d) Expanded Affiliated Group Treated as Single Taxpayer.--For 
purposes of this section, the members of an expanded affiliated group 
(as defined in section 280I(b)(4)) shall be treated as a single 
taxpayer.
    ``(e) Regulations.--The Secretary shall prescribe such regulations 
or other guidance as may be necessary or appropriate to carry out the 
purposes of this section.''.
    (b) Clerical Amendment.--The table of sections for part IX of 
subchapter B of chapter 1 of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new item:

``Sec. 280J. Limitations for outsourcing employers.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

SEC. 5. RECAPTURE OF CREDITS FOR OUTSOURCING EMPLOYERS.

    (a) In General.--Part IV of subchapter A of chapter 1 of the 
Internal Revenue Code of 1986 is amended by adding at the end the 
following new subpart:

      ``Subpart K--Recapture of Credits for Outsourcing Employers

``Sec. 54BB. Recapture of credits for outsourcing employers.

``SEC. 54BB. RECAPTURE OF CREDITS FOR OUTSOURCING EMPLOYERS.

    ``(a) In General.--Pursuant to regulations prescribed by the 
Secretary, in the case of a taxpayer which owns a facility for which 
there is an outsourcing event during the taxable year, the tax under 
this chapter for such taxable year shall be increased by the amount 
equal to the sum of--
            ``(1) any credits allowed under this chapter relating to 
        expenses for design, construction, operation, or maintenance of 
        such facility during the 5 taxable years preceding such taxable 
        year, and
            ``(2) any grants provided by the Secretary in lieu of 
        credits described in paragraph (1) during the 5 taxable years 
        preceding such taxable year.
    ``(b) Outsourcing Event.--For purposes of subsection (a), the term 
`outsourcing event' means a plant closing or mass layoff (as described 
in section 2(a) of the Worker Adjustment and Retraining Notification 
Act) in which the employment loss (excluding any part-time employees) 
for positions which will be moved to a country outside of the United 
States, as determined pursuant to the outsourcing statement (as 
described in paragraph (1) of such section 3(e) of such Act) served by 
the taxpayer during the taxable year, exceeds 50 employees.
    ``(c) Expanded Affiliated Group Treated as Single Taxpayer.--For 
purposes of this section, the members of an expanded affiliated group 
(as defined in section 280I(b)(4)) shall be treated as a single 
taxpayer.''.
    (b) Clerical Amendment.--The table of subparts for part IV of 
subchapter A of chapter 1 of such Code is amended by adding at the end 
the following new item:

     ``subpart k. recapture of credits for outsourcing employers''.

    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

SEC. 6. CREDIT FOR INSOURCING EXPENSES.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new section:

``SEC. 45S. CREDIT FOR INSOURCING EXPENSES.

    ``(a) In General.--For purposes of section 38, the insourcing 
expenses credit for any taxable year is an amount equal to 20 percent 
of the eligible insourcing expenses of the taxpayer which are taken 
into account in such taxable year under subsection (d).
    ``(b) Eligible Insourcing Expenses.--For purposes of this section--
            ``(1) In general.--The term `eligible insourcing expenses' 
        means--
                    ``(A) eligible expenses paid or incurred by the 
                taxpayer in connection with the elimination of any 
                business unit of the taxpayer (or of any member of any 
                expanded affiliated group in which the taxpayer is also 
                a member) located outside the United States, and
                    ``(B) eligible expenses paid or incurred by the 
                taxpayer in connection with the establishment of any 
                business unit of the taxpayer (or of any member of any 
                expanded affiliated group in which the taxpayer is also 
                a member) located within--
                            ``(i) a HUBZone (as defined in section 
                        3(p)(2) of the Small Business Act (15 U.S.C. 
                        632(p)(2))), or
                            ``(ii) a low-income community (as described 
                        in section 45D(e)),
        if such establishment constitutes the relocation of the 
        business unit so eliminated. For purposes of the preceding 
        sentence, a relocation shall not be treated as failing to occur 
        merely because such elimination occurs in a different taxable 
        year than such establishment.
            ``(2) Eligible expenses.--The term `eligible expenses' 
        means--
                    ``(A) any amount for which a deduction is allowed 
                to the taxpayer under section 162, and
                    ``(B) permit and license fees, lease brokerage 
                fees, equipment installation costs, and, to the extent 
                provided by the Secretary, other similar expenses.
        Such term does not include any compensation which is paid or 
        incurred in connection with severance from employment and, to 
        the extent provided by the Secretary, any similar amount.
            ``(3) Business unit.--The term `business unit' means--
                    ``(A) any trade or business, and
                    ``(B) any line of business, or functional unit, 
                which is part of any trade or business.
            ``(4) Expanded affiliated group.--The term `expanded 
        affiliated group' means an affiliated group as defined in 
        section 1504(a), determined without regard to section 
        1504(b)(3) and by substituting `more than 50 percent' for `at 
        least 80 percent' each place it appears in section 1504(a). A 
        partnership or any other entity (other than a corporation) 
        shall be treated as a member of an expanded affiliated group if 
        such entity is controlled (within the meaning of section 
        954(d)(3)) by members of such group (including any entity 
        treated as a member of such group by reason of this paragraph).
            ``(5) Expenses must be pursuant to insourcing plan.--
        Amounts shall be taken into account under paragraph (1) only to 
        the extent that such amounts are paid or incurred pursuant to a 
        written plan to carry out the relocation described in paragraph 
        (1).
            ``(6) Operating expenses not taken into account.--Any 
        amount paid or incurred in connection with the on-going 
        operation of a business unit shall not be treated as an amount 
        paid or incurred in connection with the establishment or 
        elimination of such business unit.
    ``(c) Increased Domestic Employment Requirement.--No credit shall 
be allowed under this section unless the number of full-time equivalent 
employees of the taxpayer for the taxable year for which the credit is 
claimed exceeds the number of full-time equivalent employees of the 
taxpayer for the last taxable year ending before the first taxable year 
in which such eligible insourcing expenses were paid or incurred. For 
purposes of this subsection, full-time equivalent employees has the 
meaning given such term under section 45R(d) (and the applicable rules 
of section 45R(e)). All employers treated as a single employer under 
subsection (b), (c), (m), or (o) of section 414 shall be treated as a 
single employer for purposes of this subsection.
    ``(d) Credit Allowed Upon Completion of Insourcing Plan.--
            ``(1) In general.--Except as provided in paragraph (2), 
        eligible insourcing expenses shall be taken into account under 
        subsection (a) in the taxable year during which the plan 
        described in subsection (b)(5) has been completed and all 
        eligible insourcing expenses pursuant to such plan have been 
        paid or incurred.
            ``(2) Election to apply employment test and claim credit in 
        first full taxable year after completion of plan.--If the 
        taxpayer elects the application of this paragraph, eligible 
        insourcing expenses shall be taken into account under 
        subsection (a) in the first taxable year after the taxable year 
        described in paragraph (1).
    ``(e) Possessions Treated as Part of the United States.--For 
purposes of this section, the term `United States' shall be treated as 
including each possession of the United States (including the 
Commonwealth of Puerto Rico and the Commonwealth of the Northern 
Mariana Islands).
    ``(f) Regulations.--The Secretary shall prescribe such regulations 
or other guidance as may be necessary or appropriate to carry out the 
purposes of this section.''.
    (b) Credit To Be Part of General Business Credit.--Subsection (b) 
of section 38 of such Code is amended by striking ``plus'' at the end 
of paragraph (35), by striking the period at the end of paragraph (36) 
and inserting ``, plus'', and by adding at the end the following new 
paragraph:
            ``(37) the insourcing expenses credit determined under 
        section 45S(a).''.
    (c) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 of such Code is amended by adding 
at the end the following new item:

``Sec. 45S. Credit for insourcing expenses.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to amounts paid or incurred after the date of the enactment of 
this Act.
    (e) Application to United States Possessions.--
            (1) Payments to possessions.--
                    (A) Mirror code possessions.--The Secretary of the 
                Treasury shall make periodic payments to each 
                possession of the United States with a mirror code tax 
                system in an amount equal to the loss to that 
                possession by reason of section 45S of the Internal 
                Revenue Code of 1986. Such amount shall be determined 
                by the Secretary of the Treasury based on information 
                provided by the government of the respective 
                possession.
                    (B) Other possessions.--The Secretary of the 
                Treasury shall make annual payments to each possession 
                of the United States which does not have a mirror code 
                tax system in an amount estimated by the Secretary of 
                the Treasury as being equal to the aggregate benefits 
                that would have been provided to residents of such 
                possession by reason of section 45S of such Code if a 
                mirror code tax system had been in effect in such 
                possession. The preceding sentence shall not apply with 
                respect to any possession of the United States unless 
                such possession has a plan, which has been approved by 
                the Secretary of the Treasury, under which such 
                possession will promptly distribute such payment to the 
                residents of such possession.
            (2) Coordination with credit allowed against united states 
        income taxes.--No credit shall be allowed against United States 
        income taxes under section 45S of such Code to any person--
                    (A) to whom a credit is allowed against taxes 
                imposed by the possession by reason of such section, or
                    (B) who is eligible for a payment under a plan 
                described in paragraph (1)(B).
            (3) Definitions and special rules.--
                    (A) Possessions of the united states.--For purposes 
                of this section, the term ``possession of the United 
                States'' includes the Commonwealth of Puerto Rico and 
                the Commonwealth of the Northern Mariana Islands.
                    (B) Mirror code tax system.--For purposes of this 
                section, the term ``mirror code tax system'' means, 
                with respect to any possession of the United States, 
                the income tax system of such possession if the income 
                tax liability of the residents of such possession under 
                such system is determined by reference to the income 
                tax laws of the United States as if such possession 
                were the United States.
                    (C) Treatment of payments.--For purposes of section 
                1324(b)(2) of title 31, United States Code, the 
                payments under this section shall be treated in the 
                same manner as a refund due from sections referred to 
                in such section 1324(b)(2).

SEC. 7. AUTHORITY FOR FEDERAL CONTRACTING OFFICERS TO TAKE THE 
              OUTSOURCING OF JOBS FROM THE UNITED STATES INTO ACCOUNT 
              IN AWARDING CONTRACTS.

    (a) Department of Defense and Related Agency Contracts.--
            (1) Consideration of outsourcing.--
                    (A) In general.--Chapter 137 of title 10, United 
                States Code, is amended by inserting after section 2327 
                the following new section:
``Sec. 2327a. Contracts: consideration of outsourcing of jobs
    ``(a) Disclosure of Outsourcing of Jobs.--
            ``(1) In general.--The head of an agency shall require a 
        contractor that submits a bid or proposal in response to a 
        solicitation issued by the agency to disclose in that bid or 
        proposal if the contractor, or a subsidiary of the contractor, 
        owns a facility for which there is an outsourcing event during 
        the three-year period ending on the date of the submittal of 
        the bid or proposal.
            ``(2) Outsourcing event.--For purposes of paragraph (1), 
        the term `outsourcing event' means a plant closing or mass 
        layoff (as described in section 2(a) of the Worker Adjustment 
        and Retraining Notification Act) in which the employment loss 
        (excluding any part-time employees) for positions which will be 
        moved to a country outside of the United States, as determined 
        pursuant to the outsourcing statement (as described in 
        paragraph (1) of such section 3(e) of such Act) served by the 
        taxpayer during the taxable year, exceeds 50 employees.
    ``(b) Consideration Authorized.--(1) Agency contracting officers 
considering bids or proposals in response to a solicitation issued by 
the agency may take into account any disclosure made pursuant to 
subsection (a) in such bids and proposals.
    ``(2) The head of an agency may establish a negative preference of 
up to 10 percent of the cost of a contract for purposes of evaluating a 
bid or proposal of a contractor that makes a disclosure pursuant to 
subsection (a).
    ``(c) Sense of Congress.--It is the sense of Congress that agency 
contracting officers should, using section 2304(b)(3) of this title, 
exclude contractors making a disclosure pursuant to subsection (a) in 
response to solicitations issued by the agency from the bidding process 
in connection with such solicitations on the grounds that the actions 
described in the disclosures are against the public interests of the 
United States.
    ``(d) Annual Report.--The head of each agency shall submit to 
Congress each year a report on the following:
            ``(1) The number of solicitations made by the agency during 
        the preceding year for which disclosures were made pursuant to 
        subsection (a) in responsive bids or proposals.
            ``(2) The number of contracts awarded by the agency during 
        the preceding year in which such disclosures were taken into 
        account in the contract award.''.
                    (B) Clerical amendment.--The table of sections at 
                the beginning of chapter 137 of such title is amended 
                by inserting after the item relating to section 2327 
                the following new item:

``2327a. Contracts: consideration of outsourcing of jobs.''.
            (2) Exclusion of firms from sources.--Section 2304(b) of 
        such title is amended--
                    (A) by redesignating paragraphs (3) and (4) as 
                paragraphs (4) and (5), respectively;
                    (B) by inserting after paragraph (2) the following 
                new paragraph:
    ``(3) The head of an agency may provide for the procurement of 
property and services covered by this chapter using competitive 
procedures but excluding a source making a disclosure pursuant to 
section 2327a(a) of this title in the bid or proposal in response to 
the solicitation issued by the agency if the head of the agency 
determines that the actions described by disclosure are against the 
public interests of the United States and the source is to be excluded 
on those grounds. Any such determination shall take into account the 
sense of Congress set forth in section 2327a(c) of this title.''; and
                    (C) in paragraph (3), as so redesignated, by 
                striking ``paragraphs (1) and (2)'' and inserting 
                ``paragraphs (1), (2), and (3)''.
    (b) Other Federal Contracts.--
            (1) Consideration of outsourcing.--Chapter 35 of title 41, 
        United States Code, is amended by inserting after section 3303 
        the following new section:
``Sec. 3303a. Bidders outsourcing jobs: disclosure of outsourcing; 
              consideration of outsourcing in award; exclusion from 
              sources
    ``(a) Disclosure of Outsourcing of Jobs.--
            ``(1) In general.--The head of an executive agency shall 
        require a contractor that submits a bid or proposal in response 
        to a solicitation issued by the executive agency to disclose in 
        that bid or proposal if the contractor, or a subsidiary of the 
        contractor, owns a facility for which there is an outsourcing 
        event during the three-year period ending on the date of the 
        submittal of the bid or proposal.
            ``(2) Outsourcing event.--For purposes of paragraph (1), 
        the term `outsourcing event' means a plant closing or mass 
        layoff (as described in section 2(a) of the Worker Adjustment 
        and Retraining Notification Act) in which the employment loss 
        (excluding any part-time employees) for positions which will be 
        moved to a country outside of the United States, as determined 
        pursuant to the outsourcing statement (as described in 
        paragraph (1) of such section 3(e) of such Act) served by the 
        taxpayer during the taxable year, exceeds 50 employees.
    ``(b) Consideration Authorized.--(1) Contracting officers of an 
executive agency considering bids or proposals in response to a 
solicitation issued by the executive agency may take into account any 
disclosure made pursuant to subsection (a) in such bids and proposals.
    ``(2) The head of an executive agency may establish a negative 
preference of up to 10 percent of the cost of a contract for purposes 
of evaluating a bid or proposal of a contractor that makes a disclosure 
pursuant to subsection (a).
    ``(c) Exclusion From Sources.--
            ``(1) In general.--The head of an executive agency may 
        provide for the procurement of property and services using 
        competitive procedures but excluding a source making a 
        disclosure under subsection (a) in the bid or proposal in 
        response to the solicitation issued by the executive agency if 
        the head of the executive agency determines that the actions 
        described by disclosure are against the public interests of the 
        United States and the source is to be excluded on those 
        grounds. Any such determination shall take into account the 
        sense of Congress set forth in paragraph (2).
            ``(2) Sense of congress.--It is the sense of Congress that 
        contracting officers of executive agencies may use paragraph 
        (1) to exclude contractors making a disclosure pursuant to 
        subsection (a) in response to a solicitation issued by the 
        executive agency from the bidding process in connection with 
        the solicitation on the grounds that the actions described by 
        the disclosure are against the public interests of the United 
        States.
    ``(d) Annual Report.--The head of each executive agency shall 
submit to Congress each year a report on the following:
            ``(1) The number of solicitations made by the executive 
        agency during the preceding year for which disclosures were 
        made pursuant to subsection (a) in responsive bids or 
        proposals.
            ``(2) The number of contracts awarded to contractors that 
        disclosed having outsourced more than 50 jobs during the 
        preceding three years.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 35 of such title is amended by inserting 
        after the item relating to section 3303 the following new item:

``3303a. Bidders outsourcing jobs: disclosure of outsourcing; 
                            consideration of outsourcing in award; 
                            exclusion from sources.''.
            (3) Conforming amendment.--Section 3301(a) of such title is 
        amended by inserting ``3303a(c),'' after ``3303,''.
    (c) Regulations.--
            (1) In general.--Not later than 180 days after the date of 
        the enactment of this Act, the Federal Acquisition Regulatory 
        Council, in consultation with the heads of relevant agencies, 
        shall amend the Federal Acquisition Regulation and the Defense 
        Federal Acquisition Regulation Supplement to carry out the 
        requirements of section 3303a of title 41, United States Code, 
        and section 2327a of title 10, United States Code, as added by 
        this section.
            (2) Definition of outsourcing.--For purposes of defining 
        outsourcing pursuant to paragraph (1), the Federal Acquisition 
        Regulatory Council may utilize regulations prescribed by the 
        Secretary of Labor.
    (d) Rule of Construction.--This section, and the amendments made by 
this section, shall be applied in a manner consistent with United 
States obligations under international agreements.
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