I 
110TH CONGRESS 
1ST SESSION H. R. 1639 
To provide that no entity performing lead system integrator functions in 
the acquisition of a major system by the Department of Homeland 
Security may have any direct financial interest in the development or 
construction of any individual system or element of any system of sys-
tems, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 22, 2007 
Mr. CARNEY (for himself and Mr. THOMPSON of Mississippi) introduced the 
following bill; which was referred to the Committee on Homeland Security 
A BILL 
To provide that no entity performing lead system integrator 
functions in the acquisition of a major system by the 
Department of Homeland Security may have any direct 
financial interest in the development or construction of 
any individual system or element of any system of sys-
tems, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 
1. 
LEAD 
SYSTEM 
INTEGRATOR 
FUNCTIONS 
UNDER DHS MAJOR SYSTEM ACQUISITIONS. 
(a) IN GENERAL.—With respect to contracts entered 
into after May 1, 2007, and except as provided in sub-
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section (b), no entity performing lead system integrator 
functions in the acquisition of a major system by the De-
partment of Homeland Security may have any direct fi-
nancial interest in the development or construction of any 
individual system or element of any system of systems. 
(b) EXCEPTION.—An entity described in subsection 
(a) may have a direct financial interest in the development 
or construction of an individual system or element of a 
system of systems if— 
(1) the Secretary of Homeland Security cer-
tifies to the Committees on Appropriations of the 
Senate and the House of Representatives and the 
House Committee on Homeland Security that— 
(A) the entity was selected by the Depart-
ment of Homeland Security as a contractor to 
develop or construct the system or element con-
cerned through the use of competitive proce-
dures; and 
(B) the Department took appropriate steps 
to prevent any organizational conflict of interest 
in the selection process; or 
(2) the entity was selected by a subcontractor 
to serve as a lower-tier subcontractor, through a 
process over which the entity exercised no control. 
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(c) CONSTRUCTION.—Nothing in this section shall be 
construed to preclude an entity described in subsection (a) 
from performing work necessary to integrate two or more 
individual systems or elements of a system of systems with 
each other. 
(d) REGULATIONS UPDATE.—Not later than May 1, 
2007, the Secretary of Homeland Security shall update 
the acquisition regulations of the Department of Home-
land Security in order to specify fully in such regulations 
the matters with respect to lead system integrators set 
forth in this section. Included in such regulations shall be 
(1) a precise and comprehensive definition of the term 
‘‘lead system integrator’’, modeled after that used by the 
Department of Defense, and (2) a specification of various 
types of contracts and fee structures that are appropriate 
for use by lead system integrators in the production, field-
ing, and sustainment of complex systems. 
Æ 
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