I 
108TH CONGRESS 
1ST SESSION H. R. 1218
To require contractors with the Federal Government to possess a satisfactory 
record of integrity and business ethics. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 11, 2003
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-
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 
chapter is amended by inserting after the item relating 
to section 2305a the following new item:
‘‘2305b. Contractor requirement for satisfactory record of integrity and business 
ethics.’’.
(b) OTHER CONTRACTORS.—(1) Title III of the Fed-
eral Property and Administrative Services Act of 1949 (41 
U.S.C. 251 et seq.) is amended by inserting after section 
303L the following new section:
‘‘SEC. 303M. CONTRACTOR REQUIREMENT FOR SATISFAC-
TORY RECORD OF INTEGRITY AND BUSINESS 
ETHICS. 
‘‘(a) IN GENERAL.—No prospective contractor may 
be awarded a contract with an agency unless the con-
tracting officer for the contract determines that such pro-
spective contractor has a satisfactory record of integrity 
and business ethics, including a record of satisfactory 
compliance with the law (including tax, labor and employ-
ment, environmental, antitrust, and consumer protection 
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-
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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