No Defense Contracts for Terror Profiteers Act of 2016

To limit the use of funds available to the Department of Defense for fiscal year 2017 to procure, or enter into any contract for the procurement of, any goods or services from persons that provide material support to certain Iranian persons. 1. Short title This Act may be cited as the No Defense Contracts for Terror Profiteers Act of 2016 2. Limitation on use of funds available to the Department of Defense for fiscal year 2017 to procure, or enter into any contract for the procurement of, any goods or services from persons that provide material support to certain Iranian persons (a) Limitation No funds available to the Department of Defense for fiscal year 2017 may be used to procure, or enter into any contract for the procurement of, any goods or services from any person that provides material support to, including engaging in a significant transaction or transactions with, a covered Iranian person during such fiscal year. (b) Certification The Federal Acquisition Regulation shall be revised to require a certification from each person that is a prospective contractor that such person does not engage in any of the conduct described in subsection (a). Such revision shall apply with respect to contracts in an amount greater than the simplified acquisition threshold (as defined in section 134 of title 41, United States Code) for which solicitations are issued on or after the date that is 90 days after the date of the enactment of this Act. (c) Waiver The Secretary of Defense, in consultation with the Secretary of State and the Secretary of the Treasury, may, on a case-by-case basis, waive the limitation in subsection (a) with respect to a person if the Secretary of Defense, in consultation with the Secretary of State and the Secretary of the Treasury— (1) determines that the waiver is important to the national security interest of the United States; and (2) submits to the appropriate committees of Congress a notification of, and detailed justification for, the waiver not less than 30 days before the date on which the waiver is to take effect. (d) Definitions In this section: (1) Appropriate committees of Congress The term appropriate committees of Congress (A) the Committee on Armed Services and the Committee on Foreign Relations of the Senate; and (B) the Committee on Armed Services and the Committee on Foreign Affairs of the House of Representatives. (2) Covered Iranian person The term covered Iranian person (A) is included on the list of specially designated nationals and blocked persons maintained by the Office of Foreign Assets Control of the Department of the Treasury and the property and interests in property of which are blocked pursuant to the International Emergency Economic Powers Act ( 50 U.S.C. 1701 et seq. (B) is included on the list of persons identified as blocked solely pursuant to Executive Order 13599; or (C) in the case of an Iranian person described in paragraph (3)(B)— (i) is owned, directly or indirectly, by— (I) Iran’s Revolutionary Guard Corps, or any agent or affiliate thereof; or (II) one or more other Iranian persons that are included on the list of specially designated nationals and blocked persons as described in subparagraph (A) if such Iranian persons collectively own a 25 percent or greater interest in the Iranian person; or (ii) is controlled, managed, or directed, directly or indirectly, by Iran’s Revolutionary Guard Corps, or any agent or affiliate thereof, or by one or more other Iranian persons described in clause (i)(II). (3) Iranian person The term Iranian person (A) an individual who is a national of Iran; or (B) an entity that is organized under the laws of Iran or otherwise subject to the jurisdiction of the Government of Iran. (4) Person The term person (5) Significant transaction or transactions The term significant transaction or transactions

Summary: No Defense Contracts for Terror Profiteers Act of 2016 This bill prohibits funds available to the Department of Defense (DOD) for FY2017 from being used to procure, or enter into a contract to procure, goods or services from any person that provides material support to a covered Iranian person during such fiscal year. A "covered Iranian person" includes an Iranian person that is: (1) included on the list of designated nationals and blocked persons maintained by the Office of Foreign Assets Control of the Department of the Treasury for acting on behalf of, or being owned or controlled by, the government of Iran; or (2) owned or controlled by Iran's Revolutionary Guard Corps. The bill requires the Federal Acquisition Regulation to be revised to require a person with a prospective contract of more than $100,000 to certify that the person does not engage in prohibited conduct with a covered Iranian person. DOD may, on a case-by-case basis, waive such prohibition for national security reasons but must provide Congress with notice before the waiver takes effect.