I
107TH CONGRESS
2D SESSION
H. R. 4081
To require contractors with the Federal Government to possess a satisfactory
record of integrity and business ethics.
IN THE HOUSE OF REPRESENTATIVES
MARCH 20, 2002
Mr. WYNN introduced the following bill; which was referred to the Committee
on Government Reform, and in addition to the Committee on Armed
Services, for a period to be subsequently determined by the Speaker, in
each case for consideration of such provisions as fall within the jurisdic-
tion of the committee concerned
A BILL
To require contractors with the Federal Government to
possess a satisfactory record of integrity and business ethics.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. REQUIREMENT FOR FEDERAL CONTRACTORS
TO POSSESS SATISFACTORY RECORD OF IN-
TEGRITY AND BUSINESS ETHICS.
(a) DEFENSE CONTRACTORS.—(1) Chapter 137 of
title 10, United States Code, is amended by inserting after
section 2305a the following new section:
‘‘§ 2305b. Contractor requirement for satisfactory
record of integrity and business ethics
‘‘(a) IN GENERAL.—No prospective contractor may
be awarded a contract with an agency under this title un-
less the contracting officer for the contract determines
that such prospective contractor has a satisfactory record
of integrity and business ethics, including a record of sat-
isfactory compliance with the law (including tax, labor and
employment, environmental, antitrust, and consumer pro-
tection laws).
‘‘(b) INFORMATION TO BE CONSIDERED.—In mak-
ing a determination as to whether a prospective contractor
has a satisfactory record of integrity and business ethics,
a contracting officer—
‘‘(1) shall consider all relevant credible informa-
tion, but shall give the greatest weight to any viola-
tions of law that have been adjudicated during the
3-year period preceding the offer by the prospective
contractor;
‘‘(2) shall consider any administrative agree-
ments entered into with the prospective contractor if
the prospective contractor has taken corrective ac-
tion after disclosing a violation of law, and may con-
sider such a contractor to be a responsible con-
tractor if the contractor has corrected the conditions
that led to the misconduct;
‘‘(3) shall consider failure to comply with the
terms of an administrative agreement to be a lack
of integrity and business ethics under this section;
‘‘(4) may consider other relevant information,
such as civil or administrative complaints or similar
actions filed by or on behalf of a Federal agency,
board, or commission, if such action reflects an ad-
judicated determination by the agency; and
‘‘(5) shall consider the following in descending
order of importance:
‘‘(A) Convictions of and civil judgments
rendered against the prospective contractor
for—
‘‘(i) commission of fraud or a criminal
offense in connection with obtaining, at-
tempting to obtain, or performing a Fed-
eral, State, or local contract or sub-
contract;
‘‘(ii) violation of Federal or State
antitrust law relating to the submission of
offers; or
‘‘(iii) commission of embezzlement,
theft, forgery, bribery, falsification, or de-
struction of records, making false state-
tractor if the contractor has corrected the conditions
that led to the misconduct;
‘‘(3) shall consider failure to comply with the
terms of an administrative agreement to be a lack
of integrity and business ethics under this section;
‘‘(4) may consider other relevant information,
such as civil or administrative complaints or similar
actions filed by or on behalf of a Federal agency,
board, or commission, if such action reflects an ad-
judicated determination by the agency; and
‘‘(5) shall consider the following in descending
order of importance:
‘‘(A) Convictions of and civil judgments
rendered against the prospective contractor
for—
‘‘(i) commission of fraud or a criminal
offense in connection with obtaining, at-
tempting to obtain, or performing a Fed-
eral, State, or local contract or sub-
contract;
‘‘(ii) violation of Federal or State
antitrust law relating to the submission of
offers; or
‘‘(iii) commission of embezzlement,
theft, forgery, bribery, falsification, or de-
struction of records, making false state-
ment, tax evasion, or receiving stolen prop-
erty.
‘‘(B) Indictments for the offenses de-
scribed in subparagraph (A).
‘‘(C) With respect to tax, labor, employ-
ment, environmental, antitrust, or consumer
protection laws—
‘‘(i) Federal or State felony convic-
tions;
‘‘(ii) adverse Federal court judgments
in civil cases brought by the United States;
‘‘(iii) adverse decisions by a Federal
administrative law judge, board, or com-
mission indicating violations of law; and
‘‘(iv) Federal or State felony indict-
ments.’’.
(2) The table of sections at the beginning of such Act
is amended by inserting after the item relating to section
303L the following new item:
‘‘303M. Contractor requirement for satisfactory record of integrity and business
ethics.’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply with respect to contracts for which
solicitations are issued after the date of the enactment of
this Act.
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