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[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 3139 Introduced in Senate (IS)]

110th CONGRESS
  2d Session
                                S. 3139

 To provide for greater accountability and transparency in the Federal 
              contracting process, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             June 16, 2008

 Mrs. Clinton introduced the following bill; which was read twice and 
referred to the Committee on Homeland Security and Governmental Affairs

_______________________________________________________________________

                                 A BILL

 
 To provide for greater accountability and transparency in the Federal 
              contracting process, 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 ``Oversight of the 
Performance and Effectiveness of National Contracting Act of 2008''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
                TITLE I--ACCOUNTABILITY FOR CONTRACTORS

Sec. 101. Governmental policy.
Sec. 102. Prohibition on awarding of Government contracts or grants to 
                            companies purposefully organized in an 
                            offshore secrecy jurisdiction to avoid 
                            Federal tax obligations.
Sec. 103. Prohibition on contracting with companies without financial 
                            report certifications.
Sec. 104. Requirement for Federal contractors to possess satisfactory 
                            record of integrity and business ethics.
Sec. 105. Preventing conflicts of interest of contractor personnel.
Sec. 106. Award fees.
                 TITLE II--COMPETITION AND TRANSPARENCY

Sec. 201. Database for contracting officers.
Sec. 202. Enhancement of contracting information disclosed on 
                            USASpending.gov.
       TITLE III--BUILDING A BETTER FEDERAL GOVERNMENT WORKFORCE

Sec. 301. Contractors and inherently governmental functions.
                    TITLE IV--DISCLOSURE EXCEPTIONS

Sec. 401. Exceptions to disclosure requirements.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Executive agency.--The term ``executive agency'' has 
        the meaning given the term in section 4 of the Office of 
        Federal Procurement Policy (41 U.S.C. 403).
            (2) Functions closely associated with governmental 
        functions.--The term ``functions closely associated with a 
        governmental functions'' means functions described in section 
        7.503(d) of the Federal Acquisition Regulation.
            (3) Inherently governmental functions.--The term 
        ``inherently governmental functions'' has the meaning given the 
        term in section 2.101 of the Federal Acquisition Regulation.

                TITLE I--ACCOUNTABILITY FOR CONTRACTORS

SEC. 101. GOVERNMENTAL POLICY.

    It is the policy of the United States Government that no Government 
contracts or grants should be awarded to companies purposefully 
organized in an offshore secrecy jurisdiction to avoid Federal tax 
obligations.

SEC. 102. PROHIBITION ON AWARDING OF GOVERNMENT CONTRACTS OR GRANTS TO 
              COMPANIES PURPOSEFULLY ORGANIZED IN AN OFFSHORE SECRECY 
              JURISDICTION TO AVOID FEDERAL TAX OBLIGATIONS.

    (a) In General.--The head of any Executive agency that issues an 
invitation for bids or a request for proposals for a contract or offers 
a grant may not award such contract or grant to any person which is an 
offshore secrecy jurisdiction company.
    (b) Regulations and Guidance.--
            (1) In general.--Not later than 210 days after the date of 
        the enactment of this section (including a period of not more 
        than 30 days for comment), the Director of the Office of 
        Management and Budget and the Secretary shall adopt and revise 
        such regulations or guidance as necessary to incorporate the 
        requirements of this section, including procedures under 
        which--
                    (A) the Commissioner of Internal Revenue shall 
                notify the head of each Executive agency of any 
                determination that a person is an offshore secrecy 
                jurisdiction company; and
                    (B) any person that is no longer determined by the 
                Commissioner of Internal Revenue to be an offshore 
                secrecy jurisdiction company can petition for 
                reinstatement as a person eligible for the awarding of 
                any such contract or grant.
            (2) Determination of offshore secrecy jurisdiction 
        company.--As part of the regulations or guidance under 
        paragraph (1), the Secretary shall provide guidelines for the 
        determination by the Commissioner of Internal Revenue on 
        whether a person is purposefully organized in an offshore 
        secrecy jurisdiction to avoid Federal tax obligations. Such 
        guidelines shall provide that as part of such determination, 
        the Commissioner of Internal Revenue shall review--
                    (A) whether such organization changes in a 
                meaningful way (apart from Federal tax effects) the 
                persons's economic position;
                    (B) whether such person has a substantial nontax 
                purpose for organizing in an offshore secrecy 
                jurisdiction and whether the organization is a 
                reasonable means of accomplishing such purpose;
                    (C) whether the present value of the reasonably 
                expected pre-tax profit attributable to the person's 
                organization in an offshore secrecy jurisdiction is 
                substantial in relation to the present value of the 
                expected net tax benefits of such organization; and
                    (D) whether the reasonably expected pre-tax profit 
                attributable to the person's organization in an 
                offshore secrecy jurisdiction exceeds a risk-free rate 
                of return.
        In applying subparagraph (B), a purpose of achieving a 
        financial accounting benefit shall not be taken into account in 
        determining whether an organization has a substantial nontax 
        purpose if the origin of such financial accounting benefit is a 
        reduction of Federal income tax.
    (c) Definitions and Special Rules.--For purposes of this section:
            (1) Contract.--The term ``contract'' means a binding 
        agreement entered into by an Executive agency for the purpose 
        of obtaining property or services, but does not include--
                    (A) a contract designated by the head of the agency 
                as assisting the agency in the performance of disaster 
                relief authorities; or
                    (B) a contract designated by the head of the agency 
                as necessary to the national security of the United 
                States.
            (2) Executive agency.--The term ``executive agency'' has 
        the meaning given such term in section 4 of the Office of 
        Federal Procurement Policy Act (41 U.S.C. 403).
            (3) Offshore secrecy jurisdiction company.--
                    (A) In general.--The term ``offshore secrecy 
                jurisdiction company'' means any person which the 
                Commissioner of Internal Revenue determines that for 
                the purpose of avoiding Federal tax obligations--
                            (i) is organized in an offshore secrecy 
                        jurisdiction; or
                            (ii) is a member of a domestically 
                        controlled group of entities any member of 
                        which is organized in an offshore secrecy 
                        jurisdiction.
                    (B) Offshore secrecy jurisdiction.--
                            (i) In general.--The term ``offshore 
                        secrecy jurisdiction'' means any foreign 
                        jurisdiction which is listed by the Secretary 
                        as an offshore secrecy jurisdiction for 
                        purposes of this title.
                            (ii) Determination of jurisdictions on 
                        list.--A jurisdiction shall be listed under 
                        clause (i) if the Secretary determines that 
                        such jurisdiction has corporate, business, 
                        bank, or tax secrecy rules and practices which, 
                        in the judgment of the Secretary, unreasonably 
                        restrict the ability of the United States to 
                        obtain information relevant to the enforcement 
                        of the Internal Revenue Code of 1986, unless 
                        the Secretary also determines that such country 
                        has effective information exchange practices.
                            (iii) Secrecy or confidentiality rules and 
                        practices.--For purposes of clause (ii), 
                        corporate, business, bank, or tax secrecy or 
                        confidentiality rules and practices include 
                        both formal laws and regulations and informal 
                        government or business practices having the 
                        effect of inhibiting access of law enforcement 
                        and tax administration authorities to 
                        beneficial ownership and other financial 
                        information.
                            (iv) Ineffective information exchange 
                        practices.--For purposes of clause (ii), a 
                        jurisdiction shall be deemed to have 
                        ineffective information exchange practices 
                        unless the Secretary determines, on an annual 
                        basis, that--
                                    (I) such jurisdiction has in effect 
                                a treaty or other information exchange 
                                agreement with the United States that 
                                provides for the prompt, obligatory, 
                                and automatic exchange of such 
                                information as is forseeably relevant 
                                for carrying out the provisions of the 
                                treaty or agreement or the 
                                administration or enforcement of such 
                                Code,
                                    (II) during the 12-month period 
                                preceding the annual determination, the 
                                exchange of information between the 
                                United States and such jurisdiction was 
                                in practice adequate to prevent evasion 
                                or avoidance of United States income 
                                tax by United States persons and to 
                                enable the United States effectively to 
                                enforce such Code, and
                                    (III) during the 12-month period 
                                preceding the annual determination, 
                                such jurisdiction was not identified by 
                                an intergovernmental group or 
                                organization of which the United States 
                                is a member as uncooperative with 
                                international tax enforcement or 
                                information exchange and the United 
                                States concurs in such identification.
                            (v) Initial list of offshore secrecy 
                        jurisdictions.--For purposes of this 
                        subparagraph, each of the following foreign 
                        jurisdictions, which have been previously and 
                        publicly identified by the Internal Revenue 
                        Service as secrecy jurisdictions in Federal 
                        court proceedings, shall be deemed listed by 
                        the Secretary as an offshore secrecy 
                        jurisdiction unless delisted by the Secretary 
                        under clause (vi)(II):
                                    (I) Anguilla.
                                    (II) Antigua and Barbuda.
                                    (III) Aruba.
                                    (IV) Bahamas.
                                    (V) Barbados.
                                    (VI) Belize.
                                    (VII) Bermuda.
                                    (VIII) British Virgin Islands.
                                    (IX) Cayman Islands.
                                    (X) Cook Islands.
                                    (XI) Costa Rica.
                                    (XII) Cyprus.
                                    (XIII) Dominica.
                                    (XIV) Gibraltar.
                                    (XV) Grenada.
                                    (XVI) Guernsey/Sark/Alderney.
                                    (XVII) Hong Kong.
                                    (XVIII) Isle of Man.
                                    (XIX) Jersey.
                                    (XX) Latvia.
                                    (XXI) Liechtenstein.
                                    (XXII) Luxembourg.
                                    (XXIII) Malta.
                                    (XXIV) Nauru.
                                    (XXV) Netherlands Antilles.
                                    (XXVI) Panama.
                                    (XXVII) Samoa.
                                    (XXVIII) St. Kitts and Nevis.
                                    (XXIX) St. Lucia.
                                    (XXX) St. Vincent and the 
                                Grenadines.
                                    (XXXI) Singapore.
                                    (XXXII) Switzerland.
                                    (XXXIII) Turks and Caicos.
                                    (XXXIV) Vanuatu.
                            (vi) Modifications to list.--The 
                        Secretary--
                                    (I) shall add to the list under 
                                clause (i) jurisdictions which meet the 
                                requirements of clause (ii), and
                                    (II) may remove from such list only 
                                those jurisdictions which meet none of 
                                the requirements of clause (ii).
                    (C) Domestically controlled group of entities.--For 
                purposes of this subsection--
                            (i) In general.--The term ``domestically 
                        controlled group of entities'' means a 
                        controlled group of entities the common parent 
                        of which is a domestic corporation.
                            (ii) Controlled group of entities.--The 
                        term ``controlled group of entities'' means a 
                        controlled group of corporations as defined in 
                        section 1563(a)(1) of the Internal Revenue Code 
                        of 1986, except that--
                                    (I) ``more than 50 percent'' shall 
                                be substituted for ``at least 80 
                                percent'' each place it appears 
                                therein, and
                                    (II) the determination shall be 
                                made without regard to subsections 
                                (a)(4) and (b)(2) of section 1563 of 
                                such Code.
                        A partnership or any other entity (other than a 
                        corporation) shall be treated as a member of a 
                        controlled group of entities if such entity is 
                        controlled (within the meaning of section 
                        954(d)(3) of such Code) by members of such 
                        group (including any entity treated as a member 
                        of such group by reason of this sentence).
            (4) Person.--The term ``person'' means--
                    (A) a corporation; or
                    (B) a partnership or any other entity (other than a 
                corporation).
            (5) Secretary.--The term ``Secretary'' means the Secretary 
        of the Treasury or the Secretary's delegate.
    (d) Report.--The Secretary shall make an annual report to Congress 
and the Office of Management and Budget beginning 1 year after the 
effective date of this section regarding efforts to make determinations 
regarding persons purposefully organized in an offshore secrecy 
jurisdiction to avoid Federal tax obligations.
    (e) Effective Date.--This section shall apply to contracts and 
grants awarded after the date which is 210 days after the date of the 
enactment of this Act.

SEC. 103. PROHIBITION ON CONTRACTING WITH COMPANIES WITHOUT FINANCIAL 
              REPORT CERTIFICATIONS.

    (a) Prohibition on Contracting With Companies That Fail To Certify 
Financial Reports.--Except as provided under subsection (c), the head 
of an executive agency may not enter into or approve any contract or 
approve any subcontract under a contract with any company filing 
periodic reports under section 13(a) or 15(d) of the Securities 
Exchange Act of 1934 (15 U.S.C. 78m, 78o(d)) that has failed to make 
the certification required under section 302(a) of the Sarbanes-Oxley 
Act of 2002 (15 U.S.C. 7241(a)) for the most recent periodic report 
due.
    (b) Period of Prohibition.--A prohibition under subsection (a) 
shall remain in effect with respect to a company for the one-year 
period beginning on the date that the periodic report for which the 
certification was not made was due.
    (c) Waiver.--
            (1) In general.--The head of an executive agency may waive 
        the prohibition under subsection (a) with respect to a contract 
        if such agency head determines that--
                    (A) the waiver is in the national security interest 
                of the United States; or
                    (B) the failure of the company to make the 
                certification required under section 302(a) of the 
                Sarbanes-Oxley Act of 2002 (15 U.S.C. 7241(a)) was a 
                minor or technical infraction.
            (2) Justifications.--
                    (A) National security waiver.--The head of an 
                executive agency granting a waiver under paragraph 
                (1)(A) shall submit a justification for the waiver to 
                the Director of the Office of Management and Budget and 
                the chairs and ranking members of the appropriate 
                oversight committees of Congress.
                    (B) Waiver for minor or technical infraction.--The 
                head of an executive agency granting a waiver under 
                paragraph (1)(B) shall, in coordination with the 
                company for which the waiver is granted--
                            (i) submit a justification for the waiver 
                        to the Director of the Office of Management and 
                        Budget and the chairs and ranking members of 
                        the appropriate oversight committees of 
                        Congress; and
                            (ii) post the justification on the 
                        searchable website required under the Federal 
                        Funding Accountability and Transparency Act of 
                        2006 (Public Law 109-282; 31 U.S.C. 6101 note).
    (d) List of Companies Failing To Certify.--The Securities and 
Exchange Commission shall make publicly available on the searchable 
website required under the Federal Funding Accountability and 
Transparency Act of 2006 (Public Law 109-282; 31 U.S.C. 6101 note) a 
list of the companies that failed to make the certification required 
under section 302(a) of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 
7241(a)) for the most recent periodic report due. The list shall be 
updated on a quarterly basis.
    (e) Applicability.--This section applies to contracts and 
subcontracts entered into after the date of the enactment of this Act.

SEC. 104. REQUIREMENT FOR FEDERAL CONTRACTORS TO POSSESS SATISFACTORY 
              RECORD OF INTEGRITY AND BUSINESS ETHICS.

    (a) Defense Contractors.--
            (1) In general.--Chapter 137 of title 10, United States 
        Code, is amended by inserting after section 2305a the following 
        new section:
``Sec. 2305b. Satisfactory record of integrity and business ethics
    ``(a) In General.--No prospective contractor may be awarded a 
contract with an agency under this title unless the contracting officer 
for the contract determines that such prospective contractor has a 
satisfactory record of integrity and business ethics, including 
satisfactory compliance with the law (including tax, labor and 
employment, environmental, antitrust, and consumer protection laws).
    ``(b) Information To Be Considered.--In making a determination as 
to whether a prospective contractor has a satisfactory record of 
integrity and business ethics, a contracting officer--
            ``(1) shall consider all relevant credible information, but 
        shall give the greatest weight to violations of law that have 
        been adjudicated within the last 5 years preceding the offer;
            ``(2) shall give consideration to any administrative 
        agreements entered into with the prospective contractor if the 
        prospective contractor has taken corrective action after 
        disclosing a violation of law, and may consider such a 
        contractor to be a responsible contractor if the contractor has 
        corrected the conditions that led to the misconduct;
            ``(3) shall consider failure to comply with the terms of an 
        administrative agreement as evidence of a lack of integrity and 
        business ethics under this section;
            ``(4) shall consider in descending order of importance--
                    ``(A) convictions of and civil judgments rendered 
                against the prospective contractor for--
                            ``(i) commission of fraud or a criminal 
                        offense in connection with obtaining, 
                        attempting to obtain, or performing a public 
                        Federal, State, or local contract or 
                        subcontract;
                            ``(ii) violation of Federal or State 
                        antitrust law relating to the submission of 
                        offers; or
                            ``(iii) commission of embezzlement, theft, 
                        forgery, bribery, falsification, or destruction 
                        of records, making false statement, tax 
                        evasion, or receiving stolen property; and
                    ``(B) relative to tax, labor, employment, 
                environmental, antitrust, or consumer protection laws--
                            ``(i) Federal or State felony convictions;
                            ``(ii) adverse Federal court judgments in 
                        civil cases brought by the United States;
                            ``(iii) adverse decisions by a Federal 
                        administrative law judge, board, or commission 
                        indicating violations of law;
                            ``(iv) Federal or State felony indictments; 
                        and
                            ``(v) any other civil judgment rendered 
                        against the prospective contractor; and
            ``(5) may consider other relevant information, such as 
        civil or administrative complaints or similar actions filed by 
        or on behalf of a Federal agency, board, or commission, if such 
        action reflects an adjudicated determination by the agency.
    ``(c) Repeated Violations of Law.--A single violation of law 
normally should not give rise to a determination that the prospective 
contractor has an unsatisfactory record of integrity and business 
ethics, but evidence of repeated, pervasive, or significant violations 
of the law may indicate an unsatisfactory record of integrity and 
business ethics.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of such chapter is amended by inserting after the 
        item relating to section 2305a the following new item:

``2305b. Contractor requirement for satisfactory record of integrity 
                            and business ethics.''.
    (b) Civilian Contractors.--Title III of the Federal Property and 
Administrative Services Act of 1949 (41 U.S.C. 251 et seq.) is amended 
by inserting after section 303L the following new section:

``SEC. 303M. SATISFACTORY RECORD OF INTEGRITY AND BUSINESS ETHICS.

    ``(a) In General.--No prospective contractor may be awarded a 
contract with an executive agency under this title unless the 
contracting officer for the contract determines that such prospective 
contractor has a satisfactory record of integrity and business ethics, 
including satisfactory compliance with the law (including tax, labor 
and employment, environmental, antitrust, and consumer protection 
laws).
    ``(b) Information To Be Considered.--In making a determination as 
to whether a prospective contractor has a satisfactory record of 
integrity and business ethics, a contracting officer--
            ``(1) shall consider all relevant credible information, but 
        shall give the greatest weight to violations of law that have 
        been adjudicated within the last 5 years preceding the offer;
            ``(2) shall give consideration to any administrative 
        agreements entered into with the prospective contractor if the 
        prospective contractor has taken corrective action after 
        disclosing a violation of law, and may consider such a 
        contractor to be a responsible contractor if the contractor has 
        corrected the conditions that led to the misconduct;
            ``(3) shall consider failure to comply with the terms of an 
        administrative agreement as evidence of a lack of integrity and 
        business ethics under this section;
            ``(4) shall consider in descending order of importance--
                    ``(A) convictions of and civil judgments rendered 
                against the prospective contractor for--
                            ``(i) commission of fraud or a criminal 
                        offense in connection with obtaining, 
                        attempting to obtain, or performing a public 
                        Federal, State, or local contract or 
                        subcontract;
                            ``(ii) violation of Federal or State 
                        antitrust law relating to the submission of 
                        offers; or
                            ``(iii) commission of embezzlement, theft, 
                        forgery, bribery, falsification, or destruction 
                        of records, making false statement, tax 
                        evasion, or receiving stolen property; and
                    ``(B) relative to tax, labor, employment, 
                environmental, antitrust, or consumer protection laws--
                            ``(i) Federal or State felony convictions;
                            ``(ii) adverse Federal court judgments in 
                        civil cases brought by the United States;
                            ``(iii) adverse decisions by a Federal 
                        administrative law judge, board, or commission 
                        indicating violations of law; and
                            ``(iv) Federal or State felony indictments; 
                        and
            ``(5) may consider other relevant information, such as 
        civil or administrative complaints or similar actions filed by 
        or on behalf of an executive agency, board, or commission, if 
        such action reflects an adjudicated determination by the 
        agency.
    ``(c) Repeated Violations of Law.--A single violation of law 
normally should not give rise to a determination that the prospective 
contractor has an unsatisfactory record of integrity and business 
ethics, but evidence of repeated, pervasive, or significant violations 
of the law may indicate an unsatisfactory record of integrity and 
business ethics.''.
    (c) Effective Date.--The amendments made by this section shall 
apply with respect to contracts for which solicitations are issued 
after the date of the enactment of this Act.

SEC. 105. PREVENTING CONFLICTS OF INTEREST OF CONTRACTOR PERSONNEL.

    (a) In General.--The head of an executive agency may not enter into 
a covered contract unless the contract includes a conflicts of interest 
clause as described in subsection (b).
    (b) Conflict of Interest Clause.--The conflict of interest clause 
required under subsection (a) shall include the following:
            (1) A requirement that no employee of the contractor may 
        perform a covered function relating to a program, company, 
        contract, or other matter in which the employee (or a member of 
        the employee's immediate family) has a financial interest 
        without the express written approval of the contracting 
        officer.
            (2) A requirement that the contractor shall obtain, review, 
        update, and maintain as part of its personnel records a 
        financial disclosure statement from each employee assigned to 
        perform a covered function under the contract sufficient to 
        enable the contractor to verify compliance of such employee 
        with the requirements under paragraph (1).
            (3) A prohibition against employees of the contractor 
        responsible for performing a covered function under the 
        contract relating to a program, company, contract, or other 
        matter from accepting a gift from the company or from an 
        individual or entity that has a financial interest in the 
        program, company, contract, or other matter.
            (4) A prohibition against contractor personnel who have 
        access to non-public government information obtained while 
        performing work on the contract from using such information for 
        personal gain.
            (5) A requirement that the contractor take appropriate 
        disciplinary action in the case of employees who fail to comply 
        with requirements and prohibitions described in this 
        subsection.
            (6) A requirement for the contractor to promptly report any 
        failure to comply with such requirements and prohibitions to 
        the contracting officer.
            (7) Penalties for failures to comply with the requirements 
        and prohibitions described in paragraphs (1) through (6).
            (8) A requirement that the contractor report any failure to 
        comply with the requirements and prohibitions described in 
        paragraphs (1) through (6) to the applicable contracting 
        officer of the executive agency or representative of such 
        officer as soon as such failure is identified.
            (9) Such additional safeguards, definitions, and exceptions 
        as may be necessary to safeguard the public interest.
    (c) Definitions.--In this section:
            (1) The term ``covered contract'' means a contract (or task 
        or delivery order) in excess of $500,000 for the performance of 
        functions closely associated with governmental functions.
            (2) The term ``covered function'' means an inherently 
        governmental function or a function described in section 
        7.503(d) of the Federal Acquisition Regulation.
    (d) Effective Date; Applicability.--This section shall take effect 
on the date that is 30 days after the date of the enactment of this Act 
and shall apply to--
            (1) contracts entered into on or after such effective date; 
        and
            (2) task or delivery orders awarded on or after such 
        effective date, regardless of whether the contracts pursuant to 
        which such task or delivery orders are awarded were entered 
        into before, on, or after such effective date.

SEC. 106. AWARD FEES.

    (a) Linkage of Award Fees to Successful Acquisition Outcomes.--
Every contract entered into by an executive agency that provides for 
award fees shall link such fees to successful acquisition outcomes 
(which outcomes shall be specified in terms of cost, schedule, and 
performance).
    (b) Prohibition on Award of Unwarranted Award Fees.--The head of an 
executive agency may not--
            (1) award a bonus or other incentive payment to a 
        contractor for work the contractor did not perform or with 
        respect to which the contractor received a poor performance 
        rating; or
            (2) provide to a contractor award fees unless the 
        contractor, to the extent reasonably within the control of the 
        contractor, achieved the successful acquisition outcome to 
        which such fees were linked under the contract.

                 TITLE II--COMPETITION AND TRANSPARENCY

SEC. 201. DATABASE FOR CONTRACTING OFFICERS.

    (a) Database.--
            (1) In general.--Subject to the authority, direction, and 
        control of the Director of the Office of Management and Budget, 
        the Administrator of General Services shall establish and 
        maintain a database of information regarding integrity and 
        performance of persons awarded Federal contracts and grants for 
        use by Federal officials having authority over contracts and 
        grants.
            (2) Persons covered.--The database shall cover any person 
        awarded a Federal contract or grant if any information 
        described in paragraph (3) exists with respect to such person.
            (3) Information included.--With respect to a person awarded 
        a Federal contract or grant, the database shall include 
        information (in the form of a brief description) for at least 
        the most recent 5-year period regarding--
                    (A) all Federal contracts and grants awarded to the 
                person that were terminated in such period due to 
                default;
                    (B) all Federal suspensions and debarments of the 
                person in that period;
                    (C) all Federal administrative agreements entered 
                into by the person and the Federal Government in that 
                period to resolve a suspension or debarment proceeding 
                and, to the maximum extent practicable, agreements 
                involving a suspension or debarment proceeding entered 
                into by the person and a State government in that 
                period;
                    (D) all final findings by a Federal official in 
                that period that the person has been determined not to 
                be a responsible source under either subparagraph (C) 
                or (D) of section 4(7) of the Office of Federal 
                Procurement Policy Act (41 U.S.C. 403(7));
                    (E) evidence of repeated, pervasive, or significant 
                violations of the law that may indicate an 
                unsatisfactory record of integrity and business ethics;
                    (F) all convictions of, or civil judgments rendered 
                against, the prospective contractor for--
                            (i) commission of fraud or a criminal 
                        offense in connection with obtaining, 
                        attempting to obtain, or performing a public 
                        Federal, State, or local government contract or 
                        subcontract;
                            (ii) violation of Federal or State 
                        antitrust law relating to the submission of 
                        offers; and
                            (iii) commission of embezzlement, theft, 
                        forgery, bribery, falsification, or obstruction 
                        of records, making a false statement, tax 
                        evasion, or receiving stolen property;
                    (G) relative to tax, labor, employment, 
                environmental, antitrust, or consumer protection laws--
                            (i) all Federal or State felony 
                        convictions;
                            (ii) all adverse Federal court judgments in 
                        civil cases brought by the United States;
                            (iii) all adverse decisions by a Federal 
                        administrative law judge, board, or commission 
                        indicating violations of law;
                            (iv) all Federal or State felony 
                        indictments; and
                            (v) any other civil judgment rendered 
                        against the prospective contractor;
                    (H) all administrative agreements or compliance 
                agreements entered into between an executive agency and 
                the contractor;
                    (I) all civil or administrative complains or 
                similar actions filed by or on behalf of a Federal 
                agency, board, or commission; and
                    (J) other information, such as civil or 
                administrative complaints or similar actions filed by 
                or on behalf of a Federal agency, board, or commission, 
                determined by the Director of the Office of Management 
                and Budget to be relevant.
            (4) Requirements relating to information in database.--
                    (A) Direct input and update.--The Administrator of 
                General Services shall design and maintain the database 
                in a manner that allows the appropriate officials of 
                each Federal agency to directly input and update in the 
                database information relating to actions it has taken 
                with regard to contractors or grant recipients.
                    (B) Timeliness and accuracy.--The Administrator 
                shall develop policies to require--
                            (i) the timely and accurate input of 
                        information into the database;
                            (ii) notification of any covered person 
                        when information relevant to the person is 
                        entered into the database; and
                            (iii) an opportunity for any covered person 
                        to append comments to information about such 
                        person in the database.
            (5) Availability.--
                    (A) Availability to all executive agencies and 
                congress.--The Administrator shall make the database 
                available to all executive agencies and Congress.
                    (B) Limitation.--This subsection does not require 
                the public availability of information that is exempt 
                from public disclosure under section 552(b) of title 5, 
                United States Code.
    (b) Review of Database.--
            (1) Requirement to review database.--Prior to the award of 
        a contract or grant, an official responsible for awarding a 
        contract or grant shall review the database established under 
        subsection (a).
            (2) Requirement to document present responsibility.--In the 
        case of a prospective awardee of a contract or grant against 
        which a judgment or conviction has been rendered more than once 
        within any 3-year period for the same or similar offences, if 
        each judgment or conviction is a cause for debarment, the 
        official responsible for awarding the contract or grant shall 
        document why the prospective awardee is considered presently 
        responsible.
    (c) Disclosure in Applications.--
            (1) Requirement.--Not later than 180 days after the date of 
        the enactment of this Act, the Federal Acquisition Regulation 
        shall be amended to require that in applying for any Federal 
        grant or submitting a proposal or bid for any Federal contract 
        a person shall disclose in writing information described in 
        subsection (a)(3).
            (2) Covered contracts and grants.--This subsection shall 
        apply only to contracts and grants in an amount greater than 
        the simplified acquisition threshold, as defined in section 
        4(11) of the Office of Federal Procurement Policy Act (41 
        U.S.C. 401(11)).
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated to the Administrator of General Services such funds as may 
be necessary to establish the database described in subsection (a).
    (e) Report to Congress.--
            (1) Report required.--Not later than 180 days after the 
        date of the enactment of this Act, the Administrator of General 
        Services shall submit to Congress a report.
            (2) Contents of report.--The report shall contain the 
        following:
                    (A) A list of all databases that include 
                information about Federal contracting and Federal 
                grants.
                    (B) Recommendations for further legislation or 
                administrative action that the Administrator considers 
                appropriate to create a centralized, comprehensive 
                Federal contracting and Federal grant database.

SEC. 202. ENHANCEMENT OF CONTRACTING INFORMATION DISCLOSED ON 
              USASPENDING.GOV.

    The Director of the Office of Management and Budget shall maintain 
on the searchable website required under the Federal Funding 
Accountability and Transparency Act of 2006 (Public Law 109-282; 31 
U.S.C. 6101 note) the following information:
            (1) A detailed description of the type and purpose of work 
        to be performed under each contract included on the website, 
        unless the inclusion of such information is determined by the 
        Director not to be in the interest of the United States in the 
        case of a contract awarded in connection with a national 
        emergency, a national security situation, or in the national 
        defense.
            (2) Sworn affidavits by procurement managers and political 
        appointees involved in the award of a contract stating that 
        they complied with contracting rules regarding full and open 
        competition, including the restrictions on disclosing and 
        obtaining contractor bid or proposal information or source 
        selection information under section 27 of the Office of Federal 
        Procurement Policy Act (41 U.S.C. 423), and addressing any 
        conflicts of interest.
            (3) Award fees awarded to contractors and justifications 
        for such award fees.
            (4) Contractors performing work under contracts that is 
        closely associated with inherently governmental functions (as 
        that term is described in section 7.503 of the Federal 
        Acquisition Regulation).
            (5) The identities of any senior personnel, officers, or 
        board members of, or senior lobbyists or consultants for, 
        contractors who serve in a capacity where they provide media 
        commentary on the performance of an executive agency.
            (6) The price range of bids that were competitive with the 
        winning bid for each contract included on the website, 
        including the lowest price, median price, and highest price.
            (7) The performance range of the top 100 Federal 
        contractors (according to value of contracts awarded per fiscal 
        year), including a listing of ratings for unsatisfactory 
        performance, performance meeting expectations, and performance 
        exceeding expectations.
            (8) For each contractor included on the website, a list of 
        executive agencies for which the contractor is currently 
        performing services under a contract.
            (9) Any administrative agreements or compliance agreements 
        entered into between an executive agency and a contractor with 
        respect to a contract included on the website.

       TITLE III--BUILDING A BETTER FEDERAL GOVERNMENT WORKFORCE

SEC. 301. CONTRACTORS AND INHERENTLY GOVERNMENTAL FUNCTIONS.

    (a) Department of Defense.--
            (1) Report on performance by contractors of certain 
        functions.--Not later than 120 days after the date of the 
        enactment of this Act, the Inspector General of the Department 
        of Defense shall submit to the Secretary of Defense and the 
        Committees on Armed Services of the Senate and the House of 
        Representatives a report listing functions of the Department 
        that are inherently governmental functions or are closely 
        associated with the performance of inherently governmental 
        functions and are performed by contractor personnel.
            (2) Staffing plan.--Not later than 120 days after the 
        submission of the report required under subsection (a), the 
        Secretary of Defense shall submit to the Committees on Armed 
        Services of the Senate and the House of Representatives a plan 
        for staffing with Department of Defense personnel the functions 
        identified in such report.
            (3) Incremental staffing requirements.--
                    (A) One year after inspector general report.--Not 
                later than one year after the submission of the report 
                required under subsection (a), the Secretary of Defense 
                shall--
                            (i) ensure that--
                                    (I) at least 50 percent of the 
                                functions identified in the report as 
                                inherently governmental functions are 
                                staffed by Department of Defense 
                                personnel;
                                    (II) at least 10 percent of the 
                                functions identified in the report as 
                                closely associated with the performance 
                                of inherently governmental functions 
                                are staffed by Department of Defense 
                                personnel; and
                                    (III) the remainder of the 
                                functions identified in the report as 
                                inherently governmental functions or as 
                                closely associated with the performance 
                                of inherently governmental functions 
                                are individually screened for potential 
                                conflicts of interest involving 
                                contractor personnel; and
                            (ii) implement a contract oversight plan 
                        within the Department of Defense to mitigate 
                        the risk that functions identified as 
                        inherently governmental functions or as closely 
                        associated with the performance of inherently 
                        governmental functions are performed by 
                        contractor personnel, particularly personnel 
                        who may experience conflicts of interest.
                    (B) Two years after inspector general report.--Not 
                later than two years after the submission of the report 
                required under subsection (a), the Secretary of Defense 
                shall ensure that--
                            (i) all functions identified in the report 
                        as inherently governmental functions are 
                        staffed by Department of Defense personnel;
                            (ii) at least 30 percent of the functions 
                        identified in the report as closely associated 
                        with the performance of inherently governmental 
                        functions are staffed by Department of Defense 
                        personnel; and
                            (iii) the remainder of the functions 
                        identified in the report as inherently 
                        governmental functions or as closely associated 
                        with the performance of inherently governmental 
                        functions are individually screened for 
                        potential conflicts of interest involving 
                        contractor personnel.
                    (C) Three years after inspector general report.--
                Not later than three years after the submission of the 
                report required under subsection (a), the Secretary of 
                Defense shall ensure that at least 50 percent of the 
                functions identified in the report as closely 
                associated with the performance of inherently 
                governmental functions are staffed by Department of 
                Defense personnel.
    (b) Department of Homeland Security.--
            (1) Report on performance by contractors of certain 
        functions.--Not later than 120 days after the date of the 
        enactment of this Act, the Inspector General of the Department 
        of Homeland Security shall submit to the Secretary of Homeland 
        Security and the Committee on Homeland Security and 
        Governmental Affairs of the Senate and the Committee on 
        Homeland Security of the House of Representatives a report 
        listing functions of the Department that are inherently 
        governmental functions or are closely associated with the 
        performance of inherently governmental functions and are 
        performed by contractor personnel.
            (2) Staffing plan.--Not later than 120 days after the 
        submission of the report required under subsection (a), the 
        Secretary of Homeland Security shall submit to the Committee on 
        Homeland Security and Governmental Affairs of the Senate and 
        the Committee on Homeland Security of the House of 
        Representatives a plan for staffing with Department of Homeland 
        Security personnel the functions identified in such report.
            (3) Incremental staffing requirements.--
                    (A) One year after inspector general report.--Not 
                later than one year after the submission of the report 
                required under subsection (a), the Secretary of 
                Homeland Security shall--
                            (i) ensure that--
                                    (I) at least 50 percent of the 
                                functions identified in the report as 
                                inherently governmental functions are 
                                staffed by Department of Homeland 
                                Security personnel;
                                    (II) at least 10 percent of the 
                                functions identified in the report as 
                                closely associated with the performance 
                                of inherently governmental functions 
                                are staffed by Department of Homeland 
                                Security personnel; and
                                    (III) the remainder of the 
                                functions identified in the report as 
                                inherently governmental functions or as 
                                closely associated with the performance 
                                of inherently governmental functions 
                                are individually screened for potential 
                                conflicts of interest involving 
                                contractor personnel; and
                            (ii) implement a contract oversight plan 
                        within the Department of Homeland Security to 
                        mitigate the risk that functions identified as 
                        inherently governmental functions or as closely 
                        associated with the performance of inherently 
                        governmental functions are performed by 
                        contractor personnel, particularly personnel 
                        who may experience conflicts of interest.
                    (B) Two years after inspector general report.--Not 
                later than two years after the submission of the report 
                required under subsection (a), the Secretary of 
                Homeland Security shall ensure that--
                            (i) all functions identified in the report 
                        as inherently governmental functions are 
                        staffed by Department of Homeland Security 
                        personnel;
                            (ii) at least 30 percent of the functions 
                        identified in the report as closely associated 
                        with the performance of inherently governmental 
                        functions are staffed by Department of Homeland 
                        Security personnel; and
                            (iii) the remainder of the functions 
                        identified in the report as inherently 
                        governmental functions or as closely associated 
                        with the performance of inherently governmental 
                        functions are individually screened for 
                        potential conflicts of interest involving 
                        contractor personnel.
                    (C) Three years after inspector general report.--
                Not later than three years after the submission of the 
                report required under subsection (a), the Secretary of 
                Homeland Security shall ensure that at least 50 percent 
                of the functions identified in the report as closely 
                associated with the performance of inherently 
                governmental functions are staffed by Department of 
                Homeland Security personnel.

                    TITLE IV--DISCLOSURE EXCEPTIONS

SEC. 401. EXCEPTIONS TO DISCLOSURE REQUIREMENTS.

    Nothing in this Act shall be construed to require the disclosure of 
the following information:
            (1) Information exempted from disclosure under the Federal 
        Acquisition Regulation, the Defense Federal Acquisition 
        Regulation Supplement, Subpart 206.3, and the Agency for 
        International Development Acquisition Regulations, Subpart 
        706.3.
            (2) Information exempted from disclosure pursuant to--
                    (A) paragraphs (1) through (7) of section 2304(c) 
                of title 10, United States Code; or
                    (B) paragraphs (1) through (7) of section 303(c) of 
                the Federal Property and Administrative Services Act of 
                1949 (41 U.S.C. 253(c)(1)-(7)).
            (3) Information exempt from disclosure in accordance with 
        contracting procedures designed to promote procurement 
        opportunities for minority and women small business owners.
            (4) Information exempt from disclosure in accordance with 
        the exercise of special emergency procurement authority 
        exercised under section 32A of the Office of Federal 
        Procurement Policy Act (41 U.S.C. 428a).
            (5) Proprietary information.
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