IB 
Union Calendar No. 372 
110TH CONGRESS 
2D SESSION 
H. R. 5712 
[Report No. 110–599] 
To require disclosure by Federal contractors of certain violations relating 
to the award or performance of Federal contracts. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 3, 2008 
Mr. WELCH of Vermont (for himself, Mr. TOWNS, and Mr. WAXMAN) intro-
duced the following bill; which was referred to the Committee on Over-
sight and Government Reform 
APRIL 22, 2008 
Additional sponsors: Mr. SARBANES, Mr. BRALEY of Iowa, Mr. HODES, Mr. 
MURPHY of Connecticut, and Mr. SHERMAN 
APRIL 22, 2008 
Reported with an amendment, committed to the Committee of the Whole 
House on the State of the Union, and ordered to be printed 
[Omit the part struck through and insert the part printed in italic] 
A BILL 
To require disclosure by Federal contractors of certain viola-
tions relating to the award or performance of Federal 
contracts. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Close the Contractor 
Fraud Loophole Act’’. 
SEC. 2. REQUIREMENT TO NOTIFY INSPECTORS GENERAL 
OF CERTAIN VIOLATIONS RELATED TO CER-
TAIN FEDERAL CONTRACTS. 
(a) NOTIFICATION OF CERTAIN CONTRACT VIOLA-
TIONS.— 
(1) REQUIREMENT.—A covered contractor shall 
submit written notification to the Office of Inspector 
General of the Executive agency that awarded the 
covered contract whenever the contractor has rea-
sonable grounds to believe that the contractor, or a 
principal, employee, agent, or subcontractor of the 
contractor, has committed a violation of Federal 
criminal law, or has received a significant overpay-
ment, in connection with the award or performance 
of the covered contract or any subcontract under the 
contract. 
(2) CAUSE FOR DEBARMENT OR SUSPENSION.— 
A knowing violation to notify an Inspector General 
of a violation or overpayment covered by paragraph 
(1) shall be a cause for debarment or suspension of 
the covered contractor. 
(3) TIMING OF NOTIFICATION.—A notification 
under paragraph (1) shall be submitted within 14 
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days after the contractor becomes aware of the viola-
tion or overpayment. 
(4) COPY OF NOTIFICATION.—A copy of any 
notification under paragraph (1) shall be submitted 
by the contractor to the contracting officer for the 
contract. 
(b) DEFINITIONS.—In this Act: 
(1) The term ‘‘covered contract’’ means any 
contract in an amount greater than $5,000,000 and 
more than 120 days in duration, whether performed 
inside or outside the United States. The term in-
cludes a contract for commercial items. 
(2) The term ‘‘covered contractor’’ means an 
entity performing a covered contract awarded by an 
executive agency. 
(3) The term ‘‘Executive agency’’ has the 
meaning provided in section 105 of title 5, United 
States Code. 
(c) APPLICABILITY.—This Act applies to all work 
performed under covered contracts, whether the work is 
performed inside or outside the United States. 
SEC. 2. REVISION OF THE FEDERAL ACQUISITION REGULA-
TION. 
The Federal Acquisition Regulation shall be amended 
within 180 days after the date of the enactment of this Act 
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pursuant to FAR Case 2007–006 (as published at 72 Fed 
Reg. 64019, November 14, 2007) or any follow-on FAR case 
to include provisions that require timely notification by 
Federal contractors of violations of Federal criminal law 
or overpayments in connection with the award or perform-
ance of covered contracts or subcontracts, including those 
performed outside the United States and those for commer-
cial items. 
SEC. 3. DEFINITION. 
In this Act, the term ‘‘covered contract’’ means any 
contract in an amount greater than $5,000,000 and more 
than 120 days in duration. 
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Union Calendar No. 372 
110TH CONGRESS 
2D SESSION 
H. R. 5712 
[Report No. 110–599] 
A BILL 
To require disclosure by Federal contractors of cer-
tain violations relating to the award or perform-
ance of Federal contracts. 
APRIL 22, 2008 
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union, 
and ordered to be printed 
VerDate Aug 31 2005 
23:32 Apr 22, 2008
Jkt 069200
PO 00000
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