(2) Violation of a Federal or State antitrust
statute relating to the submission of offers for Fed-
eral contracts.
(3) Commission of embezzlement, theft, forgery,
bribery, falsification or destruction of records, mak-
ing false statements, or receiving stolen property in
connection with obtaining, attempting to obtain, or
performing a Federal, State or local government
contract or subcontract.
(b) APPLICABILITY.—This section shall apply with
respect to a contract awarded on or after the date of the
enactment of this Act.
(c) LENGTH OF PROHIBITION; REPORT.—The prohi-
bition on the award of a contract under this section shall
terminate after a period of three years beginning on the
date that the most recent conviction or civil judgment has
been entered against the potential contractor if—
(1) during such three-year period, the potential
contractor demonstrates a satisfactory record of eth-
ics and integrity by avoiding additional criminal con-
victions or civil judgments regarding the offenses de-
scribed in subsection (a);
(2) the potential contractor submits to the Di-
rector of the Office of Management and Budget a
report on the steps that have been taken by the po-
tential contractor (such as changes in company pol-
icy, personnel, or procedures) to prevent future vio-
lations; and
(3) the Director certifies that the steps taken
are satisfactory.
(d) ADDITIONAL OFFENSES.—If an individual or en-
tity who has been prohibited from being awarded a Fed-
eral contract under subsection (a) has a conviction or civil
judgment for an offense described in subsection (a) en-
tered against the individual or entity after the termination
of the three-year period described in subsection (c), such
individual or entity shall be prohibited from being awarded
a Federal contract for an additional three years.
SEC. 6. PRESIDENTIAL WAIVER.
(a) AUTHORITY.—The President may waive the ap-
plication of section 5 if the President determines that—
(1) such a waiver is in the interests of national
security; or
(2) the need for the property or services to be
acquired under the contract is of such an unusual
and compelling urgency that the Federal Govern-
ment would be seriously injured if the application of
such section is not waived.
(b) WAITING PERIOD.—The President may not exer-
cise the waiver authority of this section until 45 days after
the date that the President submits to Congress in writing
a justification for such waiver.
SEC. 7. PAYMENT OF LEGAL COSTS.
In any case in which the United States brings an ac-
tion against an individual or entity for an offense de-
scribed in section 5(a) and a verdict of guilty is rendered,
the United States shall not be responsible for payment of
legal costs of the individual or entity in connection with
the action.
SEC. 8. CONTRACTOR DEFINED.
In this Act, the term ‘‘contractor’’ has the meaning
given such term in section 9.403 of the Federal Acquisi-
tion Regulation, as in effect on the date of the enactment
of this Act.
SEC. 9. CONSTRUCTION.
Nothing in this Act shall be construed as superseding
the authority of a Federal contracting officer to make a
determination of nonresponsibility regarding a potential
contractor, or to initiate suspension and debarment proce-
dures against an entity or individual against whom three
or more convictions or civil judgments for the offenses de-
scribed in section 5(a) have not been entered.
Æ