Federal Contracting for Peace and Security Act

To prohibit Federal procurement from companies operating in the Russian Federation, and for other purposes. 1. Short title This Act may be cited as the Federal Contracting for Peace and Security Act 2. Federal contracting for peace and security (a) Purpose It is the policy of the Federal Government not to conduct business with companies that undermine United States national security interests by continuing to operate in the Russian Federation during its ongoing war of aggression against Ukraine. (b) Contracting prohibition (1) Prohibition The head of an executive agency may not enter into, extend, or renew a covered contract with a company that continues to conduct business operations in territory internationally recognized as the Russian Federation during the covered period. (2) Exceptions (A) Good faith exemption The Office of Management and Budget, in consultation with the General Services Administration, may exempt a contractor from the prohibition in paragraph (1) if the contractor has— (i) pursued and continues to pursue all reasonable steps in demonstrating a good faith effort to comply with the requirements of this Act; and (ii) provided to the executive agency a reasonable, written plan to achieve compliance with such requirements. (B) Permissible operations The prohibition in paragraph (1) shall not apply to business operations in Russia authorized by a license issued by the Office of Foreign Assets Control or the Bureau of Industry and Security or is otherwise allowed to operate notwithstanding the imposition of sanctions or export controls. (C) American diplomatic mission in russia The prohibition in paragraph (1) shall not apply to contracts related to the operation and maintenance of the United States Government’s consular offices and diplomatic posts in Russia. (D) Individual contracts The prohibition under paragraph (1) shall not apply to any contract that is any of the following: (i) For the benefit, either directly or through the efforts of regional allies, of the country of Ukraine. (ii) For humanitarian purposes to meet basic human needs. (3) National security and public interest waivers (A) In general The head of an executive agency is authorized to waive the prohibition under paragraph (1) with respect to a covered contract if the head of the agency certifies in writing to the President that such waiver is for the national security of the United States or in the public interest of the United States, and includes in such certification a justification for the waiver and description of the contract to which the waiver applies. The authority in this subparagraph may not be delegated below the level of the senior procurement executive of the agency. (B) Congressional notification The head of an executive agency shall, not later than 7 days before issuing a waiver described in subparagraph (A), submit to the appropriate congressional committees the certification described in such subparagraph. (4) Emergency rulemaking authority Not later than 60 days after the date of the enactment of this Act, the Director of the Office of Management and Budget, in consultation with the Administrator of General Services and the Secretary of Defense, shall promulgate regulations for agency implementation of this Act using emergency rulemaking procedures while considering public comment to the greatest extent practicable, that includes the following: (A) A list of equipment, facilities, personnel, products, services, or other items or activities, the engagement with which would be considered business operations, subject to the prohibition under paragraph (1). (B) A requirement for a contractor or offeror to represent whether such contractor or offeror uses any of the items on the list described in subparagraph (A). (C) A description of the process for determining a good faith exemption described under paragraph (2). (5) Definitions In this section: (A) Appropriate congressional committees The term appropriate congressional committees (B) Business operations (i) In general Except as provided in clauses (ii) and (iii), the term business operations (ii) Exceptions The term business operations (I) Action taken for the benefit of the country of Ukraine. (II) Action serving humanitarian purposes to meet basic human needs, including through a hospital, school, or non-profit organization. (III) The provision of products or services for compliance with legal, reporting, or other requirements of the laws or standards of countries other than the Russian Federation. (IV) Journalistic and publishing activities, news reporting, or the gathering and dissemination of information, informational materials, related services, or transactions ordinarily incident to journalistic and publishing activities. (iii) Exception for suspension or termination actions The term business operations (I) an action to secure or divest from facilities, property, or equipment; (II) the provision of products or services provided to reduce or eliminate operations in territory internationally recognized as the Russian Federation or to comply with sanctions relating to the Russian Federation; and (III) activities that are incident to liquidating, dissolving, or winding down a subsidiary or legal entity in Russia through which operations had been conducted. (C) Covered contract The term covered contract (D) Covered period The term covered period (E) Executive agency The term executive agency 1. Short title This Act may be cited as the Federal Contracting for Peace and Security Act 2. Federal contracting for peace and security (a) Purpose It is the policy of the Federal Government not to contract with entities that undermine United States interests by continuing to conduct business operations in the Russian Federation during its ongoing war of aggression against Ukraine. (b) Contracting prohibition (1) Prohibition The head of an executive agency may not enter into, extend, or renew a covered contract with an entity that continues to conduct business operations in the territory internationally recognized as the Russian Federation during the covered period. (2) Exceptions (A) Good faith exemption The Office of Management and Budget, in consultation with the General Services Administration, may exempt a contractor from the prohibition in paragraph (1) if the contractor has— (i) pursued and continues to pursue all reasonable steps in demonstrating a good faith effort to comply with the requirements of this Act; and (ii) provided to the executive agency a reasonable, written plan to achieve compliance with such requirements. (B) Permissible operations The prohibition in paragraph (1) shall not apply to business operations in Russia authorized by a license issued by the Office of Foreign Assets Control or the Bureau of Industry and Security or is otherwise allowed to operate notwithstanding the imposition of sanctions or export controls. (C) American diplomatic mission in Russia The prohibition in paragraph (1) shall not apply to contracts related to the operation and maintenance of the United States Government’s consular offices and diplomatic posts in Russia. (D) Individual contracts The prohibition under paragraph (1) shall not apply to any contract that is any of the following: (i) For the benefit, either directly or through the efforts of regional allies, of the country of Ukraine. (ii) For humanitarian purposes to meet basic human needs. (3) National interest and public interest waivers (A) In general The head of an executive agency is authorized to waive the prohibition under paragraph (1) with respect to a covered contract if the head of the agency certifies in writing to the President that such waiver is for the national interest of the United States or in the public interest of the United States, and includes in such certification a justification for the waiver and description of the contract to which the waiver applies. The authority in this subparagraph may not be delegated below the level of the senior procurement executive of the agency. (B) Congressional notification The head of an executive agency shall, not later than 7 days before issuing a waiver described in subparagraph (A), submit to the appropriate congressional committees the certification described in such subparagraph. (4) Emergency rulemaking authority Not later than 180 days after the date of the enactment of this Act, the Director of the Office of Management and Budget, in consultation with the Administrator of General Services and the Secretary of Defense, shall promulgate regulations for agency implementation of this Act using emergency rulemaking procedures while considering public comment to the greatest extent practicable, that includes the following: (A) A list of equipment, facilities, personnel, products, services, or other items or activities, the engagement with which would be considered business operations, subject to the prohibition under paragraph (1). (B) A requirement for a contractor or offeror to represent whether such contractor or offeror uses any of the items, or is engaged in any of the activities on the list, described in subparagraph (A). (C) A description of the process for determining a good faith exemption described under paragraph (2). (5) Definitions In this section: (A) Appropriate congressional committees The term appropriate congressional committees (B) Business operations (i) In general Except as provided in clauses (ii) and (iii), the term business operations (ii) Exceptions The term business operations (I) Action taken for the benefit of the country of Ukraine. (II) Activities to support humanitarian projects to meet basic human needs in Ukraine or the Russian Federation, including— (aa) drought and flood relief; (bb) food, nutrition, and medicine distribution; (cc) the provision of health services; (dd) assistance for vulnerable or displaced populations, including individuals with disabilities and the elderly; and (ee) environmental programs. (III) Activities to support education in Ukraine or the Russian Federation, including combating illiteracy, increasing access to education, international exchanges, and assisting education reform projects. (IV) Activities to support non-commercial development projects directly benefitting the people of Ukraine or the Russian Federation, including those related to health, food security, and water and sanitation. (V) The provision of products or services for compliance with legal, reporting, or other requirements of the laws or standards of countries other than the Russian Federation. (VI) Journalistic and publishing activities, news reporting, or the gathering and dissemination of information, informational materials, related services, or transactions ordinarily incident to journalistic and publishing activities. (VII) Research activities, including medical research, for purposes of benefit to the general public. (iii) Exception for suspension or termination actions The term business operations (I) an action to secure or divest from facilities, property, or equipment; (II) the provision of products or services provided to reduce or eliminate operations in territory internationally recognized as the Russian Federation or to comply with sanctions relating to the Russian Federation; and (III) activities that are incident to liquidating, dissolving, or winding down a subsidiary or legal entity in Russia through which operations had been conducted, including actions required to meet any judicial or regulatory requirements or orders of the Russian Federation. (C) Covered contract The term covered contract (D) Covered period The term covered period (E) Executive agency The term executive agency December 15, 2022 Reported with an amendment

Summary: Federal Contracting for Peace and Security Act This bill requires executive agencies to terminate their contracts with entities conducting business operations in territory internationally recognized as Russia, with certain exceptions. This requirement ends when Russia takes steps to restore the safety, sovereignty, and condition of Ukraine.