I 

110TH CONGRESS 

1ST SESSION H. R. 1639 

To provide that no entity performing lead system integrator functions in 

the acquisition of a major system by the Department of Homeland 

Security may have any direct financial interest in the development or 

construction of any individual system or element of any system of systems, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 22, 2007 

Mr. CARNEY (for himself and Mr. THOMPSON of Mississippi) introduced the 

following bill; which was referred to the Committee on Homeland Security 

A BILL 

To provide that no entity performing lead system integrator 

functions in the acquisition of a major system by the 

Department of Homeland Security may have any direct 

financial interest in the development or construction of 

any individual system or element of any system of systems, and for other purposes. 

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

3 SECTION 1. LEAD SYSTEM INTEGRATOR FUNCTIONS 

4 UNDER DHS MAJOR SYSTEM ACQUISITIONS. 

5 (a) IN GENERAL.—With respect to contracts entered 

6 into after May 1, 2007, and except as provided in subVerDate Aug 31 2005 00:30 Mar 28, 2007 Jkt 059196 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H1639.IH H1639

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1 section (b), no entity performing lead system integrator 

2 functions in the acquisition of a major system by the De3 partment of Homeland Security may have any direct fi4 nancial interest in the development or construction of any 

5 individual system or element of any system of systems. 

6 (b) EXCEPTION.—An entity described in subsection 

7 (a) may have a direct financial interest in the development 

8 or construction of an individual system or element of a 

9 system of systems if— 

10 (1) the Secretary of Homeland Security cer11 tifies to the Committees on Appropriations of the 

12 Senate and the House of Representatives and the 

13 House Committee on Homeland Security that— 

14 (A) the entity was selected by the Depart15 ment of Homeland Security as a contractor to 

16 develop or construct the system or element con17 cerned through the use of competitive proce18 dures; and 

19 (B) the Department took appropriate steps 

20 to prevent any organizational conflict of interest 

21 in the selection process; or 

22 (2) the entity was selected by a subcontractor 

23 to serve as a lower-tier subcontractor, through a 

24 process over which the entity exercised no control. 


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1 (c) CONSTRUCTION.—Nothing in this section shall be 

2 construed to preclude an entity described in subsection (a) 

3 from performing work necessary to integrate two or more 

4 individual systems or elements of a system of systems with 

5 each other. 

6 (d) REGULATIONS UPDATE.—Not later than May 1, 

7 2007, the Secretary of Homeland Security shall update 

8 the acquisition regulations of the Department of Home9 land Security in order to specify fully in such regulations 

10 the matters with respect to lead system integrators set 

11 forth in this section. Included in such regulations shall be 

12 (1) a precise and comprehensive definition of the term 

13 ‘‘lead system integrator’’, modeled after that used by the 

14 Department of Defense, and (2) a specification of various 

15 types of contracts and fee structures that are appropriate 

16 for use by lead system integrators in the production, field17 ing, and sustainment of complex systems. 

Æ 


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