To require contractors with the Federal Government to possess a satisfactory record of integrity and business ethics.

SECTION 1. REQUIREMENT FOR FEDERAL CONTRACTORS TO POSSESS SATISFACTORY 
              RECORD OF INTEGRITY 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:
``Sec. 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 unless the contracting officer 
for the contract determines that such prospective contractor has a 
satisfactory record of integrity and business ethics, including a 
record of satisfactory compliance with the law (including tax, labor 
and employment, environmental, antitrust, and consumer protection 
laws).
    ``(b) Information To Be Considered.--In making 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 information, but 
        shall give the greatest weight to any violations of law that 
        have been adjudicated during the 3-year period preceding the 
        offer by the prospective contractor;
            ``(2) shall consider any administrative agreements entered 
        into with the prospective contractor if the prospective 
        contractor has taken corrective action after disclosing a 
        violation of law, and may consider such a contractor to be a 
        responsible contractor 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 adjudicated 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, 
                        attempting to obtain, or performing a Federal, 
                        State, or local contract or subcontract;
                            ``(ii) violation of Federal or State 
                        antitrust law relating to the submission of 
                        offers; or
                            ``(iii) commission of embezzlement, theft, 
                        forgery, bribery, falsification, or destruction 
                        of records, making false statement, tax 
                        evasion, or receiving stolen property.
                    ``(B) Indictments for the offenses described in 
                subparagraph (A).
                    ``(C) With respect to tax, labor, employment, 
                environmental, antitrust, or consumer protection laws--
                            ``(i) Federal or State felony convictions;
                            ``(ii) adverse Federal court judgments in 
                        civil cases brought by the United States;
                            ``(iii) adverse decisions by a Federal 
                        administrative law judge, board, or commission 
                        indicating violations of law; and
                            ``(iv) Federal or State felony 
                        indictments.''.
    (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 Federal 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 SATISFACTORY RECORD OF 
              INTEGRITY AND BUSINESS ETHICS.

    ``(a) In General.--No prospective contractor may be awarded a 
contract with an agency unless the contracting officer for the contract 
determines that such prospective contractor has a satisfactory record 
of integrity and business ethics, including a record of satisfactory 
compliance with the law (including tax, labor and employment, 
environmental, antitrust, and consumer protection laws).
    ``(b) Information To Be Considered.--In making 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 information, but 
        shall give the greatest weight to any violations of law that 
        have been adjudicated during the 3-year period preceding the 
        offer by the prospective contractor;
            ``(2) shall consider any administrative agreements entered 
        into with the prospective contractor if the prospective 
        contractor has taken corrective action after disclosing a 
        violation of law, and may consider such a contractor to be a 
        responsible contractor 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 adjudicated 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, 
                        attempting to obtain, or performing a Federal, 
                        State, or local contract or subcontract;
                            ``(ii) violation of Federal or State 
                        antitrust law relating to the submission of 
                        offers; or
                            ``(iii) commission of embezzlement, theft, 
                        forgery, bribery, falsification, or destruction 
                        of records, making false statement, tax 
                        evasion, or receiving stolen property.
                    ``(B) Indictments for the offenses described in 
                subparagraph (A).
                    ``(C) With respect to tax, labor, employment, 
                environmental, antitrust, or consumer protection laws--
                            ``(i) Federal or State felony convictions;
                            ``(ii) adverse Federal court judgments in 
                        civil cases brought by the United States;
                            ``(iii) adverse decisions by a Federal 
                        administrative law judge, board, or commission 
                        indicating violations of law; and
                            ``(iv) Federal or State felony 
                        indictments.''.
    (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.

Summary: Amends Federal defense contract law and the Federal Property and Administrative Services Act of 1949 to prohibit a contractor from being awarded a defense or Federal contract unless the Federal contracting officer determines that such contractor has a satisfactory record of integrity and business ethics, including compliance with all applicable laws. Outlines information to be considered by a contracting officer in making such determination, with an emphasis on any violations that have been adjudicated during the prior three-year period, as well as certain convictions of and civil judgments rendered against such contractor.