tractor, grantee, or recipient is 
an employer; and 
‘‘(bb) any professional mem-
bership organization, certification 
or other professional body, any 
agent or licensee of the Federal 
government, or any person acting 
directly or indirectly in the inter-
est of an employer receiving cov-
ered funds; or 
‘‘(II) with respect to covered 
funds received by a State or local gov-
ernment, the State or local govern-
ment receiving the funds and any con-
tractor or subcontractor of the State 
or local government; and 
‘‘(ii) any corporation or person who 
receives any Federal funds; and 
‘‘(B) does not mean any department, agen-
cy, or other entity of the Federal Government. 
‘‘(5) STATE
OR
LOCAL
GOVERNMENT.—The 
term ‘State or local government’ means— 
‘‘(A) the government of each of the several 
States, the District of Columbia, the Common-
wealth of Puerto Rico, Guam, American Samoa, 
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the Virgin Islands, the Commonwealth of the 
Northern Mariana Islands, or any other terri-
tory or possession of the United States; or 
‘‘(B) the government of any political sub-
division of a government listed in subparagraph 
(A).’’. 
(2) CONFORMING AMENDMENT.—The table of 
sections at the beginning of chapter 23 of title 41, 
United States Code, is amended by inserting after 
the item relating to section 2313 the following new 
item: 
‘‘2314. Protection for State and local government and contractor whistle-
blowers.’’. 
(c) APPLICABILITY.— 
(1) REPRISALS AFTER DATE OF ENACTMENT.— 
Section 2314 of title 41, United States Code, as 
added by subsection (b), shall apply to alleged re-
prisals described under subsection (a) of such sec-
tion that occur on or after the date of the enactment 
of this Act, regardless of the date on which the con-
tract, grant, cooperative agreement, or other ar-
rangement involving covered funds is entered into. 
(2) REPRISALS
BEFORE
DATE
OF
ENACT-
MENT.— 
(A) CIVILIAN CONTRACTS.—Section 4705 
of title 41, United States Code, as in effect on 
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the day before the date of the enactment of this 
Act, shall apply to alleged reprisals described 
under such section that occurred on or after the 
date of the enactment of such section and be-
fore the date of the enactment of this Act, re-
gardless of the date on which the contract, 
grant, cooperative agreement, or other arrange-
ment involving covered funds was entered into. 
(B) DEFENSE CONTRACTS.—Section 2409 
of title 10, United States Code, as in effect on 
the day before the date of the enactment of this 
Act, shall apply to alleged reprisals described 
under such section that occurred on or after the 
date of the enactment of such section and be-
fore the date of the enactment of this Act, re-
gardless of the date on which the contract, 
grant, cooperative agreement, or other arrange-
ment involving covered funds was entered into. 
(d) REGULATIONS.— 
(1) LIMITED ALLOWABILITY OF LEGAL FEES AS 
COSTS
UNDER
CONTRACTS.—Not later than 180 
days after the date of the enactment of this Act, the 
Federal Acquisition Regulatory Council shall amend 
the Federal Acquisition Regulation to provide that 
legal fees and other expenses related to a claim aris-
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ing under a whistleblower protection law are not al-
lowable costs under a contract unless and until the 
contractor has been found in an administrative or 
judicial proceeding not to be liable for such claim. 
(2) NOTIFICATION OF EMPLOYEES OF RIGHTS 
AND REMEDIES.—Not later than 180 days after the 
date of the enactment of this Act, the Federal Ac-
quisition Regulatory Council shall amend the Fed-
eral Acquisition Regulation to require inclusion of a 
contract clause notifying contractors of the require-
ment under section 2314(f) of title 41, United 
States Code, as added by subsection (b)(1), for non- 
Federal employers to notify employees of their rights 
and remedies under such section. 
Æ 
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