†
395
HR 1815 EAS
(b) OPTIONS TO BE ADDRESSED.—The review under
subsection (a) shall include the consideration of a broad
range of options for addressing the ethics considerations de-
scribed in that subsection, including—
(1) amending the Federal Acquisition Regulation
to address ethics and personal conflict of interest con-
cerns for contractor employees;
(2) implementing the Federal Acquisition Regu-
lation, as so amended, through the incorporation of
appropriate provisions in Federal agency contracts
and in the solicitations for such contracts;
(3) requiring such contracts and solicitations to
state that contractor employees will be bound by cer-
tain ethics standards, whether contractor-imposed or
Government-imposed;
(4) encouraging Federal agency personnel to con-
sider including provisions in contracts and solicita-
tions that address conflict of interest issues and re-
quire contractor personnel to receive training on Gov-
ernment ethics rules; and
(5) continuing to identify and mitigate conflicts
and ethics concerns involving contractor personnel on
a case-by-case basis.
(c) REPORT.—
†
396
HR 1815 EAS
(1) IN GENERAL.—Not later than 6 months after
the date of the enactment of this Act, the Secretary
shall submit to the congressional defense committees a
report setting forth the findings and recommendations
of the Secretary as a result of the review under sub-
section (a) and the consideration of options under
subsection (b).
(2) ADDITIONAL VIEWS.—The report under para-
graph (1) shall set forth the views, if any, of the Di-
rector of the Office of Government Ethics and the Ad-
ministrator for Federal Procurement Policy on the
matters covered by the report.
(d) FUNCTIONS CLOSELY ASSOCIATED WITH INHER-
ENTLY GOVERNMENTAL FUNCTIONS DEFINED.—In this sec-
tion, the term ‘‘functions closely associated with inherently
governmental functions’’ has the meaning given such term
in section 2383(b)(3) of title 10, United States Code.
SEC. 823. CONTRACT FRAUD RISK ASSESSMENT.
(a) RISK ASSESSMENT TEAM.—(1) Not later than 30
days after the date of the enactment of this Act, the Sec-
retary of Defense shall establish a risk assessment team to
assess the vulnerability of Department of Defense contracts
to fraud, waste, and abuse.
(2) The risk assessment team shall be chaired by the
Inspector General of the Department of Defense and shall
†
397
HR 1815 EAS
include representatives of the Defense Logistics Agency, the
Defense Contract Management Agency, the Defense Contract
Audit Agency, the Army, the Navy, and the Air Force.
(3) The risk assessment team shall—
(A) review the contracting systems and internal
controls of the Department of Defense and the systems
and controls of prime contractors of the Department
of Defense to identify areas of vulnerability of De-
partment of Defense contracts to fraud, waste, and
abuse; and
(B) prepare a report on the results of its review.
(4) Not later than six months after the date of the en-
actment of this Act, the chairman of the risk assessment
team shall submit the report prepared under paragraph
(3)(B) to the Secretary of Defense and the congressional de-
fense committees.
(b) COMPTROLLER GENERAL REVIEW.—(1) Not later
than 60 days after the date on which the report of the risk
assessment team is submitted under subsection (a)(4), the
Comptroller General of the United States shall—
(A) review the methodology used by the risk as-
sessment team and the results of the team’s review;
and
(B) submit a report on the Comptroller General’s
review to the congressional defense committees.
†
398
HR 1815 EAS
(2) The report under paragraph (1)(B) shall include
the Comptroller General’s findings and any recommenda-
tions that the Comptroller considers appropriate.
(c) ACTION PLAN.—Not later than three months after
receiving the report of the risk assessment team under sub-
section (a)(4), the Secretary of Defense shall develop and
submit to the congressional defense committees a plan of
actions for addressing the areas of vulnerability identified
in the report. If the Secretary determines that no action
is necessary with regard to an area of vulnerability, the
report shall include a discussion of the rationale for that
determination.
SEC. 824. REPORTS ON CERTAIN DEFENSE CONTRACTS IN
IRAQ AND AFGHANISTAN.
(a) QUARTERLY REPORTS.—
(1) IN GENERAL.—Not later than 90 days after
the date of the enactment of this Act, and every 90
days thereafter, the Secretary of Defense shall submit
to the appropriate committees of Congress a report
that lists and describes each task or delivery order
contract or other contract related to security and re-
construction activities in Iraq and Afghanistan in
which an audit conducted by an investigative or
audit component of the Department of Defense during