I 

114TH CONGRESS 

2D SESSION H. R. 5139 

To limit the use of funds available to the Department of Defense for fiscal 

year 2017 to procure, or enter into any contract for the procurement 

of, any goods or services from persons that provide material support 

to certain Iranian persons. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 29, 2016 

Mr. ROSKAM (for himself and Mrs. WALORSKI) introduced the following bill; 

which was referred to the Committee on Armed Services, and in addition 

to the Committee on Oversight and Government Reform, for a period to 

be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee 

concerned 

A BILL 

To limit the use of funds available to the Department of 

Defense for fiscal year 2017 to procure, or enter into 

any contract for the procurement of, any goods or services from persons that provide material support to certain Iranian persons. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘No Defense Contracts 

5 for Terror Profiteers Act of 2016’’. 


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1 SEC. 2. LIMITATION ON USE OF FUNDS AVAILABLE TO THE 

2 DEPARTMENT OF DEFENSE FOR FISCAL YEAR 

3 2017 TO PROCURE, OR ENTER INTO ANY CON4 TRACT FOR THE PROCUREMENT OF, ANY 

5 GOODS OR SERVICES FROM PERSONS THAT 

6 PROVIDE MATERIAL SUPPORT TO CERTAIN 

7 IRANIAN PERSONS. 

8 (a) LIMITATION.—No funds available to the Depart9 ment of Defense for fiscal year 2017 may be used to pro10 cure, or enter into any contract for the procurement of, 

11 any goods or services from any person that provides mate12 rial support to, including engaging in a significant trans13 action or transactions with, a covered Iranian person dur14 ing such fiscal year. 

15 (b) CERTIFICATION.—The Federal Acquisition Regu16 lation shall be revised to require a certification from each 

17 person that is a prospective contractor that such person 

18 does not engage in any of the conduct described in sub19 section (a). Such revision shall apply with respect to con20 tracts in an amount greater than the simplified acquisition 

21 threshold (as defined in section 134 of title 41, United 

22 States Code) for which solicitations are issued on or after 

23 the date that is 90 days after the date of the enactment 

24 of this Act. 

25 (c) WAIVER.—The Secretary of Defense, in consulta26 tion with the Secretary of State and the Secretary of the 


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1 Treasury, may, on a case-by-case basis, waive the limita2 tion in subsection (a) with respect to a person if the Sec3 retary of Defense, in consultation with the Secretary of 

4 State and the Secretary of the Treasury— 

5 (1) determines that the waiver is important to 

6 the national security interest of the United States; 

7 and 

8 (2) submits to the appropriate committees of 

9 Congress a notification of, and detailed justification 

10 for, the waiver not less than 30 days before the date 

11 on which the waiver is to take effect. 

12 (d) DEFINITIONS.—In this section: 

13 (1) APPROPRIATE COMMITTEES OF CON14 GRESS.—The term ‘‘appropriate committees of Con15 gress’’ means— 

16 (A) the Committee on Armed Services and 

17 the Committee on Foreign Relations of the Sen18 ate; and 

19 (B) the Committee on Armed Services and 

20 the Committee on Foreign Affairs of the House 

21 of Representatives. 

22 (2) COVERED IRANIAN PERSON.—The term 

23 ‘‘covered Iranian person’’ means an Iranian person 

24 that— 


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1 (A) is included on the list of specially des2 ignated nationals and blocked persons main3 tained by the Office of Foreign Assets Control 

4 of the Department of the Treasury and the 

5 property and interests in property of which are 

6 blocked pursuant to the International Emer7 gency Economic Powers Act (50 U.S.C. 1701 et 

8 seq.) for acting on behalf of or at the direction 

9 of, or being owned or controlled by, the Govern10 ment of Iran; 

11 (B) is included on the list of persons iden12 tified as blocked solely pursuant to Executive 

13 Order 13599; or 

14 (C) in the case of an Iranian person de15 scribed in paragraph (3)(B)— 

16 (i) is owned, directly or indirectly, 

17 by— 

18 (I) Iran’s Revolutionary Guard 

19 Corps, or any agent or affiliate there20 of; or 

21 (II) one or more other Iranian 

22 persons that are included on the list 

23 of specially designated nationals and 

24 blocked persons as described in sub25 paragraph (A) if such Iranian persons 


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1 collectively own a 25 percent or great2 er interest in the Iranian person; or 

3 (ii) is controlled, managed, or di4 rected, directly or indirectly, by Iran’s Rev5 olutionary Guard Corps, or any agent or 

6 affiliate thereof, or by one or more other 

7 Iranian persons described in clause (i)(II). 

8 (3) IRANIAN PERSON.—The term ‘‘Iranian per9 son’’ means— 

10 (A) an individual who is a national of Iran; 

11 or 

12 (B) an entity that is organized under the 

13 laws of Iran or otherwise subject to the jurisdic14 tion of the Government of Iran. 

15 (4) PERSON.—The term ‘‘person’’ has the 

16 meaning given such term in section 560.305 of title 

17 31, Code of Federal Regulations, as such section 

18 560.305 was in effect on April 22, 2016. 

19 (5) SIGNIFICANT TRANSACTION OR TRANS20 ACTIONS.—The term ‘‘significant transaction or 

21 transactions’’ shall be determined, for purposes of 

22 this section, in accordance with section 561.404 of 

23 title 31, Code of Federal Regulations, as such sec24 tion 561.404 was in effect on January 1, 2016. 

Æ 


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