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Union Calendar No. 372 

110TH CONGRESS 

2D SESSION H. R. 5712 

[Report No. 110–599] 

To require disclosure by Federal contractors of certain violations relating 

to the award or performance of Federal contracts. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 3, 2008 

Mr. WELCH of Vermont (for himself, Mr. TOWNS, and Mr. WAXMAN) introduced the following bill; which was referred to the Committee on Oversight and Government Reform 

APRIL 22, 2008 

Additional sponsors: Mr. SARBANES, Mr. BRALEY of Iowa, Mr. HODES, Mr. 

MURPHY of Connecticut, and Mr. SHERMAN

APRIL 22, 2008 

Reported with an amendment, 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 require disclosure by Federal contractors of certain violations relating to the award or performance of Federal 

contracts. 

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


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Close the Contractor 

3 Fraud Loophole Act’’. 

4 SEC. 2. REQUIREMENT TO NOTIFY INSPECTORS GENERAL 

5 OF CERTAIN VIOLATIONS RELATED TO CER6 TAIN FEDERAL CONTRACTS. 

7 (a) NOTIFICATION OF CERTAIN CONTRACT VIOLA8 TIONS.— 

9 (1) REQUIREMENT.—A covered contractor shall 

10 submit written notification to the Office of Inspector 

11 General of the Executive agency that awarded the 

12 covered contract whenever the contractor has rea13 sonable grounds to believe that the contractor, or a 

14 principal, employee, agent, or subcontractor of the 

15 contractor, has committed a violation of Federal 

16 criminal law, or has received a significant overpay17 ment, in connection with the award or performance 

18 of the covered contract or any subcontract under the 

19 contract. 

20 (2) CAUSE FOR DEBARMENT OR SUSPENSION.— 

21 A knowing violation to notify an Inspector General 

22 of a violation or overpayment covered by paragraph 

23 (1) shall be a cause for debarment or suspension of 

24 the covered contractor. 

25 (3) TIMING OF NOTIFICATION.—A notification 

26 under paragraph (1) shall be submitted within 14 


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1 days after the contractor becomes aware of the viola2 tion or overpayment. 

3 (4) COPY OF NOTIFICATION.—A copy of any 

4 notification under paragraph (1) shall be submitted 

5 by the contractor to the contracting officer for the 

6 contract. 

7 (b) DEFINITIONS.—In this Act: 

8 (1) The term ‘‘covered contract’’ means any 

9 contract in an amount greater than $5,000,000 and 

10 more than 120 days in duration, whether performed 

11 inside or outside the United States. The term in12 cludes a contract for commercial items. 

13 (2) The term ‘‘covered contractor’’ means an 

14 entity performing a covered contract awarded by an 

15 executive agency. 

16 (3) The term ‘‘Executive agency’’ has the 

17 meaning provided in section 105 of title 5, United 

18 States Code. 

19 (c) APPLICABILITY.—This Act applies to all work 

20 performed under covered contracts, whether the work is 

21 performed inside or outside the United States. 

22 SEC. 2. REVISION OF THE FEDERAL ACQUISITION REGULA23 TION. 

24 The Federal Acquisition Regulation shall be amended 

25 within 180 days after the date of the enactment of this Act 


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1 pursuant to FAR Case 2007–006 (as published at 72 Fed 

2 Reg. 64019, November 14, 2007) or any follow-on FAR case 

3 to include provisions that require timely notification by 

4 Federal contractors of violations of Federal criminal law 

5 or overpayments in connection with the award or perform6 ance of covered contracts or subcontracts, including those 

7 performed outside the United States and those for commer8 cial items. 

9 SEC. 3. DEFINITION. 

10 In this Act, the term ‘‘covered contract’’ means any 

11 contract in an amount greater than $5,000,000 and more 

12 than 120 days in duration. 


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Union Calendar No. 372 

110TH CONGRESS 

2D SESSION H. R. 5712 

[Report No. 110

–599] 

A BILL 

To require disclosure by Federal contractors of cerance of Federal contracts. tain violations relating to the award or performAPRIL 22, 2008 

Reported with an amendment, committed to the Comand ordered to be printed mittee of the Whole House on the State of the Union, 


rwilkins on PROD1PC63 with BILLS