‘‘(b) REQUIREMENT RELATING
TO GRANTS.—The 
head of any executive agency that offers a grant in excess 
of an amount equal to the simplified acquisition threshold 
may not award such grant to any person unless such per-
son submits with the application for such grant a form— 
‘‘(1) certifying that the person does not have a 
seriously delinquent tax debt; and 
‘‘(2) authorizing the Secretary of the Treasury 
to disclose to the head of the executive agency infor-
mation strictly limited to verifying whether the per-
son has a seriously delinquent tax debt. 
‘‘(c) FORM FOR RELEASE OF INFORMATION.—The 
Secretary of the Treasury shall make available to all exec-
utive agencies a standard form for the certification and 
authorization described in subsections (a) and (b). 
‘‘(d) DEFINITIONS.—In this section: 
‘‘(1) CONTRACT.—The term ‘contract’ means a 
binding agreement entered into by an executive 
agency for the purpose of obtaining property or serv-
ices, but does not include— 
‘‘(A) a contract for property or services 
that is intended to be entered into through the 
use of procedures other than competitive proce-
dures by reason of section 2304(c)(2) of this 
title; or 
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‘‘(B) a contract designated by the head of 
the agency as necessary to the national security 
of the United States. 
‘‘(2) EXECUTIVE AGENCY.—The term ‘executive 
agency’ has the meaning given that term in section 
4(1) of the Office of Federal Procurement Policy 
Act (41 U.S.C. 403(1)). 
‘‘(3) PERSON.—The term ‘person’ includes— 
‘‘(A) an individual; 
‘‘(B) a partnership; 
‘‘(C) a corporation; and 
‘‘(D) a joint venture. 
‘‘(4) SERIOUSLY DELINQUENT TAX DEBT.—The 
term ‘seriously delinquent tax debt’ means any Fed-
eral tax liability— 
‘‘(A) that exceeds $3,000; 
‘‘(B) that has been assessed by the Sec-
retary of the Treasury; 
‘‘(C) with respect to which all judicial and 
administrative remedies have been exhausted, or 
have lapsed; and 
‘‘(D) with respect to which levy may be 
made by such Secretary under section 6331 of 
the Internal Revenue Code of 1986. 
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‘‘(5) SIMPLIFIED ACQUISITION THRESHOLD.— 
The term ‘simplified acquisition threshold’ has the 
meaning given that term in section 4(11) of the Of-
fice of Federal Procurement Policy Act (41 U.S.C. 
403(11)). 
‘‘(e) SPECIAL RULES RELATING TO PARTNERS AND 
SHAREHOLDERS.—For purposes of this section— 
‘‘(1) a partnership shall be treated as a person 
with a seriously delinquent tax debt if such partner-
ship has a partner— 
‘‘(A) who holds an ownership interest of 50 
percent or more in that partnership; and 
‘‘(B) who has a seriously delinquent tax 
debt; and 
‘‘(2) a corporation shall be treated as a person 
with a seriously delinquent tax debt if— 
‘‘(A) another corporation or a joint venture 
holds 50 percent or more of the outstanding 
shares of corporate stock in that corporation 
and the other corporation or joint venture has 
a seriously delinquent tax debt; or 
‘‘(B) another corporation or joint venture 
holds a controlling interest that is less than 50 
percent of the outstanding shares of corporate 
stock in that corporation and the other corpora-
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tion or joint venture has a seriously delinquent 
tax debt.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of chapter 37 of such title is 
amended by adding after the item relating to section 
3720E the following new item: 
‘‘3720F. Contractor and grantee disclosure of delinquent Federal tax debts.’’. 
(b) REVISION OF FAR.—Not later than 270 days 
after the date of enactment of this section, the Federal 
Acquisition Regulation shall be revised to incorporate the 
requirements of section 3720F of title 31, United States 
Code, as added by this section. 
SEC. 404. INDEPENDENCE OF CONTRACTOR BUSINESS SYS-
TEM REVIEWS; RISK-BASED REVIEWS. 
(a) IN GENERAL.— 
(1) AMENDMENT.—Chapter 131 of title 10, 
United States Code, is amended by inserting after 
section 2222 the following new section: 
‘‘§ 2222a. Criteria for business system reviews 
‘‘(a) CRITERIA FOR BUSINESS SYSTEM REVIEWS.— 
The Secretary of Defense shall ensure that any contractor 
business system review carried out by a military depart-
ment, a Defense Agency, or a Department of Defense 
Field Activity— 
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‘‘(1) complies with generally accepted govern-
ment auditing standards issued by the Comptroller 
General; 
‘‘(2) is performed by an audit team that does 
not engage in any other official activity (audit-re-
lated or otherwise) involving the contractor con-
cerned; and 
‘‘(3) is performed in a time and manner con-
sistent with a documented assessment of the risk to 
the Federal Government. 
‘‘(b) CONTRACTOR BUSINESS SYSTEM REVIEW DE-
FINED.—In this section, the term ‘contractor business sys-
tem review’ means an audit of policies, procedures, and 
internal controls relating to accounting and management 
systems of a contractor.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of such chapter is amended 
by inserting after the item relating to section 2222 
the following new item: 
‘‘2222a. Criteria for business system reviews.’’. 
(b) EFFECTIVE DATE.—Section 2222a of title 10, 
United States Code, as added by subsection (a), shall take 
effect 180 days after the date of the enactment of this 
Act. 
Æ 
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