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[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1362 Referred in Senate (RFS)]

  1st Session
                                H. R. 1362

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             March 15, 2007

     Received; read twice and referred to the Committee on Homeland 
                   Security and Governmental Affairs

_______________________________________________________________________

                                 AN ACT

 
       To reform acquisition practices of the Federal Government.

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

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Accountability in 
Contracting Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title and table of contents.
              TITLE I--IMPROVING THE QUALITY OF CONTRACTS

Sec. 101. Limitation on length of noncompetitive contracts.
Sec. 102. Minimizing sole-source contracts.
Sec. 103. Maximizing fixed-price procurement contracts.
                TITLE II--INCREASING CONTRACT OVERSIGHT

Sec. 201. Public disclosure of justification and approval documents for 
                            noncompetitive contracts.
Sec. 202. Disclosure of Government contractor audit findings.
Sec. 203. Study of acquisition workforce.
Sec. 204. Repeal of sunset of training fund.
Sec. 205. Notice to Congress of noncompetitive contracts awarded to 
                            foreign-owned companies in countries 
                            sponsoring terrorism.
Sec. 206. Prohibition on contracts to educational institutions not 
                            supporting U.S. defense efforts.
             TITLE III--PROMOTING INTEGRITY IN CONTRACTING

Sec. 301. Additional provisions relating to procurement officials.
Sec. 302. Report to Congress.

              TITLE I--IMPROVING THE QUALITY OF CONTRACTS

SEC. 101. LIMITATION ON LENGTH OF NONCOMPETITIVE CONTRACTS.

    (a) Revision of FAR.--Not later than one year after the date of the 
enactment of this Act, the Federal Acquisition Regulation shall be 
revised to restrict the contract period of any contract described in 
subsection (c) to the minimum contract period necessary--
            (1) to meet the urgent and compelling requirements of the 
        work to be performed under the contract; and
            (2) to enter into another contract for the required goods 
        or services through the use of competitive procedures.
    (b) Contract Period.--The regulations promulgated under subsection 
(a) shall require the contract period to not exceed one year, unless 
the head of the executive agency concerned determines that the 
Government would be seriously injured by the limitation on the contract 
period.
    (c) Covered Contracts.--This section applies to any contract in an 
amount greater than $1,000,000 entered into by an executive agency 
using procedures other than competitive procedures pursuant to the 
exception provided in section 303(c)(2) of the Federal Property and 
Administrative Services Act of 1949 (41 U.S.C. 253(c)(2)) or section 
2304(c)(2) of title 10, United States Code.
    (d) Definitions.--In this section:
            (1) The term ``executive agency'' has the meaning provided 
        in section 4(1) of the Office of Federal Procurement Policy Act 
        (41 U.S.C. 403(1)).
            (2) The term ``head of the executive agency'' means the 
        head of an executive agency except that, in the case of the 
        Department of Defense, the term means--
                    (A) in the case of a military department, the 
                Secretary of the military department;
                    (B) in the case of a Defense Agency, the head of 
                the Defense Agency; and
                    (C) in the case of any part of the Department of 
                Defense other than a military department or Defense 
                Agency, the Under Secretary of Defense for Acquisition, 
                Technology, and Logistics.

SEC. 102. MINIMIZING SOLE-SOURCE CONTRACTS.

    (a) Plans Required.--Subject to subsection (c), the head of each 
executive agency covered by title III of the Federal Property and 
Administrative Services Act of 1949 (41 U.S.C. 251 et seq.) or, in the 
case of the Department of Defense, the Under Secretary of Defense for 
Acquisition, Technology, and Logistics, shall develop and implement a 
plan to minimize, to the maximum extent practicable, the use of 
contracts entered into using procedures other than competitive 
procedures by the agency or department concerned. The plan shall 
contain measurable goals and shall be completed and submitted to the 
Committee on Oversight and Government Reform of the House of 
Representatives, the Committee on Homeland Security and Governmental 
Affairs of the Senate, and the Committees on Appropriations of the 
House of Representatives and the Senate and, in the case of the 
Department of Defense and the Department of Energy, the Committees on 
Armed Services of the Senate and the House of Representatives, with a 
copy provided to the Comptroller General, not later than 1 year after 
the date of the enactment of this Act.
    (b) Comptroller General Review.--The Comptroller General shall 
review the plans provided under subsection (a) and submit a report to 
Congress on the plans not later than 18 months after the date of the 
enactment of this Act.
    (c) Requirement Limited to Certain Agencies.--The requirement of 
subsection (a) shall apply only to those agencies that awarded 
contracts in a total amount of at least $1,000,000,000 in the fiscal 
year preceding the fiscal year in which the report is submitted.
    (d) Certain Contracts Excluded.--The following contracts shall not 
be included in the plans developed and implemented under subsection 
(a):
            (1) Contracts entered into under section 8(a) of the Small 
        Business Act (15 U.S.C. 637(a)), in amounts less than the 
        amounts listed in paragraph (1)(D)(i)(II) of that section.
            (2) Contracts entered into under section 31 (15 U.S.C. 
        657a) of such Act, in amounts less than the amounts listed in 
        subsection (b)(2)(A)(ii) of that section.
            (3) Contracts entered into under section 36 of such Act (15 
        U.S.C. 657f), in amounts less than the amounts listed in 
        subsection (a)(2) of that section.

SEC. 103. MAXIMIZING FIXED-PRICE PROCUREMENT CONTRACTS.

    (a) Plans Required.--Subject to subsection (c), the head of each 
executive agency covered by title III of the Federal Property and 
Administrative Services Act of 1949 (41 U.S.C. 251 et seq.) or, in the 
case of the Department of Defense, the Under Secretary of Defense for 
Acquisition, Technology, and Logistics, shall develop and implement a 
plan to maximize, to the fullest extent practicable, the use of fixed-
price type contracts for the procurement of goods and services by the 
agency or department concerned. The plan shall contain measurable goals 
and shall be completed and submitted to the Committee on Oversight and 
Government Reform of the House of Representatives, the Committee on 
Homeland Security and Governmental Affairs of the Senate, and the 
Committees on Appropriations of the House of Representatives and the 
Senate and, in the case of the Department of Defense and the Department 
of Energy, the Committees on Armed Services of the Senate and the House 
of Representatives, with a copy provided to the Comptroller General, 
not later than 1 year after the date of the enactment of this Act.
    (b) Comptroller General Review.--The Comptroller General shall 
review the plans provided under subsection (a) and submit a report to 
Congress on the plans not later than 18 months after the date of the 
enactment of this Act.
    (c) Requirement Limited to Certain Agencies.--The requirement of 
subsection (a) shall apply only to those agencies that awarded 
contracts in a total amount of at least $1,000,000,000 in the fiscal 
year preceding the fiscal year in which the report is submitted.

                TITLE II--INCREASING CONTRACT OVERSIGHT

SEC. 201. PUBLIC DISCLOSURE OF JUSTIFICATION AND APPROVAL DOCUMENTS FOR 
              NONCOMPETITIVE CONTRACTS.

    (a) Civilian Agency Contracts.--
            (1) In general.--Section 303 of the Federal Property and 
        Administrative Services Act of 1949 (41 U.S.C. 253) is amended 
        by adding at the end the following new subsection:
    ``(j)(1)(A) Except as provided in subparagraph (B), in the case of 
a procurement permitted by subsection (c), the head of an executive 
agency shall make publicly available, within 14 days after the award of 
the contract, the documents containing the justification and approval 
required by subsection (f)(1) with respect to the procurement.
    ``(B) In the case of a procurement permitted by subsection (c)(2), 
subparagraph (A) shall be applied by substituting `30 days' for `14 
days'.
    ``(2) The documents shall be made available on the website of the 
agency and through the Federal Procurement Data System.
    ``(3) 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.''.
            (2) Conforming amendment.--Section 303(f) of such Act is 
        amended--
                    (A) by striking paragraph (4); and
                    (B) by redesignating paragraph (5) as paragraph 
                (4).
    (b) Defense Agency Contracts.--
            (1) In general.--Section 2304 of title 10, United States 
        Code, is amended by adding at the end the following new 
        subsection:
    ``(l)(1)(A) Except as provided in subparagraph (B), in the case of 
a procurement permitted by subsection (c), the head of an agency shall 
make publicly available, within 14 days after the award of the 
contract, the documents containing the justification and approval 
required by subsection (f)(1) with respect to the procurement.
    ``(B) In the case of a procurement permitted by subsection (c)(2), 
subparagraph (A) shall be applied by substituting `30 days' for `14 
days'.
    ``(2) The documents shall be made available on the website of the 
agency and through the Federal Procurement Data System.
    ``(3) This subsection does not require the public availability of 
information that is exempt from public disclosure under section 552(b) 
of title 5.''.
            (2) Conforming amendment.--Section 2304(f) of such title is 
        amended--
                    (A) by striking paragraph (4); and
                    (B) by redesignating paragraphs (5) and (6) as 
                paragraphs (4) and (5), respectively.

SEC. 202. DISCLOSURE OF GOVERNMENT CONTRACTOR AUDIT FINDINGS.

    (a) Quarterly Report to Congress.--
            (1) The head of each Federal agency or department or, in 
        the case of the Department of Defense, the Under Secretary of 
        Defense for Acquisition, Technology, and Logistics, shall 
        submit to the chairman and ranking member of each committee 
        specified in paragraph (2) on a quarterly basis a report that 
        includes the following:
                    (A) A list of completed audits performed by such 
                agency or department issued during the applicable 
                quarter that describe contractor costs in excess of 
                $10,000,000 that have been identified as unjustified, 
                unsupported, questioned, or unreasonable under any 
                contract, task or delivery order, or subcontract.
                    (B) The specific amounts of costs identified as 
                unjustified, unsupported, questioned, or unreasonable 
                and the percentage of their total value of the 
                contract, task or delivery order, or subcontract.
                    (C) A list of completed audits performed by such 
                agency or department issued during the applicable 
                quarter that identify material deficiencies in the 
                performance of any contractor or in any business system 
                of any contractor under any contract, task or delivery 
                order, or subcontract.
            (2) The report described in paragraph (1) shall be 
        submitted to--
                    (A) the Committee on Oversight and Government 
                Reform of the House of Representatives;
                    (B) the Committee on Homeland Security and 
                Governmental Affairs of the Senate;
                    (C) the Committees on Appropriations of the House 
                of Representatives and the Senate;
                    (D) in the case of reports from the Department of 
                Defense or the Department of Energy, the Committees on 
                Armed Services of the Senate and the House of 
                Representatives; and
                    (E) the committees of primary jurisdiction over the 
                agency or department submitting the report.
            (3) Paragraph (1) shall not apply to an agency or 
        department with respect to a calendar quarter if no audits 
        described in paragraph (1) were issued during that quarter.
    (b) Submission of Individual Audits.--
            (1) The head of each Federal agency or department shall 
        provide, within 14 days after a request in writing by the 
        chairman or ranking member of any committee listed in paragraph 
        (2), a full and unredacted copy of any audit described in 
        subsection (a)(1). Such copy shall include an identification of 
        information in the audit exempt from public disclosure under 
        section 552(b) of title 5, United States Code.
            (2) The committees listed in this paragraph are the 
        following:
                    (A) The Committee on Oversight and Government 
                Reform of the House of Representatives.
                    (B) The Committee on Homeland Security and 
                Governmental Affairs of the Senate.
                    (C) The Committees on Appropriations of the House 
                of Representatives and the Senate.
                    (D) In the case of the Department of Defense or the 
                Department of Energy, the Committees on Armed Services 
                of the Senate and House of Representatives.
                    (E) The committees of primary jurisdiction over the 
                agency or department to which the request is made.

SEC. 203. STUDY OF ACQUISITION WORKFORCE.

    (a) Requirement for Study.--The Administrator for Federal 
Procurement Policy shall conduct a study of the composition, scope, and 
functions of the Government-wide acquisition workforce and develop a 
comprehensive definition of, and method of measuring the size of, such 
workforce.
    (b) Report.--Not later than 1 year after the date of the enactment 
of this Act, the Administrator shall submit to the relevant 
congressional committees a report on the results of the study required 
by subsection (a), with such findings and recommendations as the 
Administrator determines appropriate.

SEC. 204. REPEAL OF SUNSET OF TRAINING FUND.

    Subparagraph (H) of section 37(h)(3) of the Office of Federal 
Procurement Policy Act (41 U.S.C. 433(h)(3)) is repealed.

SEC. 205. NOTICE TO CONGRESS OF NONCOMPETITIVE CONTRACTS AWARDED TO 
              FOREIGN-OWNED COMPANIES IN COUNTRIES SPONSORING 
              TERRORISM.

    (a) Notice to Congress Required.--If a contract is expected to be 
awarded by a department or agency of the Federal Government without the 
use of competitive procedures to a foreign-owned company that is based 
or has majority operations in a country described in subsection (b), 
the department or agency shall notify the appropriate congressional 
committees at least 30 days before awarding the contract, for purposes 
of providing Congress time to review the proposed contract and provide 
comments to the department or agency.
    (b) Foreign Countries Described.--A country described in this 
subsection is a country the government of which the Secretary of State 
has determined, for purposes of section 6(j) of Export Administration 
Act of 1979, section 620A of the Foreign Assistance Act of 1961, 
section 40 of the Arms Export Control Act, or any other provision of 
law, is a government that has repeatedly provided support for acts of 
international terrorism.

SEC. 206. PROHIBITION ON CONTRACTS TO EDUCATIONAL INSTITUTIONS NOT 
              SUPPORTING U.S. DEFENSE EFFORTS.

    An executive agency may not award a contract to an institution of 
higher education (including any subelement of such institution) if that 
institution (or any subelement of that institution) has a policy or 
practice (regardless of when implemented) that either prohibits, or in 
effect prevents, the Secretary of a military department or the 
Secretary of Homeland Security from gaining access to campuses of the 
institution, or access to students (who are 17 years of age or older) 
on campuses, for purposes of military recruiting, in a manner that is 
at least equal in quality and scope to the access to campuses and to 
students that is provided to any other employer. For purposes of this 
section, the term ``institution of higher education'' has the meaning 
provided in section 101 of the Higher Education Act of 1965 (20 U.S.C. 
1001). The prohibition in this section shall not apply to an 
institution of higher education (or any subelement of that institution) 
if the Secretary of Defense determines that the institution of higher 
education involved has a longstanding policy of pacifism based on 
historical religious affiliation.

             TITLE III--PROMOTING INTEGRITY IN CONTRACTING

SEC. 301. ADDITIONAL PROVISIONS RELATING TO PROCUREMENT OFFICIALS.

    (a) Elimination of Loopholes That Allow Former Federal Officials to 
Accept Compensation From Contractors or Related Entities.--Section 
27(d) of the Office of Federal Procurement Policy Act (41 U.S.C. 
423(d)) is amended--
            (1) in paragraph (1)--
                    (A) by striking ``or consultant'' and inserting 
                ``consultant, lawyer, or lobbyist''; and
                    (B) in subparagraph (C), by striking ``Federal 
                agency--'' and inserting ``Federal agency or 
                participated personally and substantially at a senior 
                personnel level in--''; and
            (2) by amending paragraph (2) to read as follows:
    ``(2) Paragraph (1) shall not prohibit a former official of a 
Federal agency from accepting compensation from any division or 
affiliate of a contractor that does not produce the same or similar 
products or services as the entity of the contractor that is 
responsible for the contract referred to in subparagraph (A), (B), or 
(C) of such paragraph if the agency's designated ethics officer 
determines that the former official's acceptance of compensation would 
not damage public confidence in the integrity of the procurement 
process.''.
    (b) Requirement for Federal Procurement Officers to Disclose Job 
Offers Made on Behalf of Relatives.--Section 27(c)(1) of such Act (41 
U.S.C. 423(c)(1)) is amended by inserting after ``that official'' the 
following: ``or for a relative of that official (as defined in section 
3110 of title 5, United States Code)''.
    (c) Requirement on Award of Government Contracts to Former 
Employers.--Section 27 of such Act (41 U.S.C. 423) is amended by adding 
at the end the following new subsection:
    ``(i) Prohibition on Involvement by Certain Former Contractor 
Employees in Procurements.--An employee of the Federal Government who 
is a former employee of a contractor with the Federal Government shall 
not be personally and substantially involved with any award of a 
contract to the employee's former employer, or in the administration of 
such contract at a senior personnel level, for the one-year period 
beginning on the date on which the employee leaves the employment of 
the contractor unless the employee has received a waiver from the 
agency's designated ethics officer. In determining whether to issue a 
waiver, the designated ethics officer shall take into account the 
agency's need for the involvement of the employee and the impact a 
waiver would have on public confidence in the integrity of the 
procurement process.''.
    (d) Regulations.--Section 27 of such Act (41 U.S.C. 423) is further 
amended by adding at the end the following new subsection:
    ``(j) Regulations.--The Administrator, in consultation with the 
Director of the Office of Government Ethics, shall--
            ``(1) promulgate regulations to carry out and ensure the 
        enforcement of this section; and
            ``(2) monitor and investigate individual and agency 
        compliance with this section.''.
    (e) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.

SEC. 302. REPORT TO CONGRESS.

    (a) Report.--Not later than 180 days after the date of the 
enactment of this Act, the Director of the Office of Government Ethics 
shall submit a report to Congress that contains the Director's 
recommendations on requiring Government contractors that advise one or 
more Federal agencies on procurement policy, and requiring federally 
funded research and development centers, to comply with restrictions 
relating to personal financial interests, such as those that apply to 
Federal employees.
    (b) Definition.--In this section--
            (1) The term ``Government contractor'' means any person 
        (other than a Federal agency) with which a Federal agency has 
        entered into a contract to acquire goods or services.
            (2) The term ``Federal agency'' means--
                    (A) any executive department or independent 
                establishment in the executive branch of the 
                Government, including any wholly owned Government 
                corporation; and
                    (B) any establishment in the legislative or 
                judicial branch of the Government (except the Senate, 
                the House of Representatives, and the Architect of the 
                Capitol and any activities under the Architect's 
                direction).
            (3) The term ``federally funded research and development 
        center'' means a federally funded research and development 
        center as identified by the National Science Foundation in 
        accordance with the Federal Acquisition Regulation.

            Passed the House of Representatives March 15, 2007.

            Attest:

                                                 KAREN L. HAAS,

                                                                 Clerk.
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