A bill to provide risk sharing and indemnification for government contractors supplying anti-terrorism technology and services, and for other purposes.

SECTION 1. APPLICATION OF INDEMNIFICATION AUTHORITY.

    (a) In General.--The discretionary authority under Public Law 85-
804 (50 U.S.C. 1431 et seq.) includes authority for the President to 
provide under such law for the indemnification of a contractor or 
subcontractor in connection with procurement of an anti-terrorism 
technology or an anti-terrorism service from the contractor or 
subcontractor for the purpose of preventing, detecting, identifying, 
otherwise deterring, or recovering from acts of terrorism.
    (b) Exercise of Authority.--The authority to provide under Public 
Law 85-804 for indemnification of contractors and subcontractors in 
connection with procurements described in subsection (a) includes 
authority for the President to provide for--
            (1) indemnification for economic damages not fully covered 
        by private liability insurance within the scope of the losses 
        or damages of the indemnification coverage;
            (2) negotiation for inclusion of an indemnification clause 
        in a contract prior to the commencement of the performance of 
        the contract;
            (3) coverage of information technology used to prevent, 
        detect, identify, otherwise deter, or recover from acts of 
        terrorism; and
            (4) applicability of the authority to procurements by the 
        United States Postal Service.

SEC. 2. APPLICATION OF INDEMNIFICATION AUTHORITY TO STATE AND LOCAL 
              GOVERNMENT CONTRACTORS.

    (a) Authority.--Subject to the limitations of subsection (b), the 
President may exercise the discretionary authority under Public Law 85-
804 (50 U.S.C. 1431 et seq.) so as to provide under such law for 
indemnification of contractors and subcontractors in procurements by 
States or units of local government of an anti-terrorism technology or 
an anti-terrorism service for the purpose of preventing, detecting, 
identifying, otherwise deterring, or recovering from acts of terrorism.
    (b) Limitations.--Any authority that is delegated by the President 
under subsection (a) to the head of a Federal agency to provide for the 
indemnification of contractors and subcontractors under Public Law 85-
804 (50 U.S.C. 1431 et seq.) for procurements by States or units of 
local government may be exercised only--
            (1) in the case of a procurement by a State or unit of 
        local government that--
                    (A) is made under a contract awarded pursuant to 
                section 3; and
                    (B) is approved, in writing, for the provision of 
                indemnification by the President or the official 
                designated by the President under section 3(a); and
            (2) with respect to--
                    (A) amounts of losses or damages not fully covered 
                by private liability insurance and State or local 
                government-provided indemnification; and
                    (B) liabilities of a contractor or subcontractor 
                not arising out of willful misconduct or lack of good 
                faith on the part of the contractor or subcontractor, 
                respectively.

SEC. 3. PROCUREMENTS OF ANTI-TERRORISM TECHNOLOGIES AND ANTI-TERRORISM 
              SERVICES BY STATE AND LOCAL GOVERNMENTS THROUGH FEDERAL 
              CONTRACTS.

    (a) In General.--
            (1) Establishment of program.--The President shall 
        designate an officer or employee of the United States to 
        establish, and the designated official shall establish, a 
        program under which States and units of local government may 
        procure through contracts entered into by the designated 
        official anti-terrorism technologies or anti-terrorism services 
        for the purpose of preventing, detecting, identifying, 
        otherwise deterring, or recovering from acts of terrorism.
            (2) Designated federal procurement official for program.--
        In this section, the officer or employee designated by the 
        President under paragraph (1) shall be referred to as the 
        ``designated Federal procurement official''.
            (3) Authorities.--Under the program, the designated Federal 
        procurement official may, but shall not be required to, award 
        contracts using the same authorities as are provided to the 
        Administrator of General Services under section 309(b)(3) of 
        the Federal Property and Administrative Services Act (41 U.S.C. 
        259(b)(3)).
            (4) Offers not required to state and local governments.--A 
        contractor that sells anti-terrorism technology or anti-
        terrorism services to the Federal Government may not be 
        required to offer such technology or services to a State or 
        unit of local government under the program.
    (b) Responsibilities of the Contracting Official.--In carrying out 
the program established under this section, the designated Federal 
procurement official shall--
            (1) produce and maintain a catalog of anti-terrorism 
        technologies and anti-terrorism services suitable for 
        procurement by States and units of local government under this 
        program; and
            (2) establish procedures in accordance with subsection (c) 
        to address the procurement of anti-terrorism technologies and 
anti-terrorism services by States and units of local government under 
contracts awarded by the designated official.
    (c) Required Procedures.--The procedures required by subsection 
(b)(2) shall implement the following requirements and authorities:
            (1) Submissions by states.--
                    (A) Requests and payments.--Except as provided in 
                subparagraph (B), each State desiring to participate in 
                a procurement of anti-terrorism technologies or anti-
                terrorism services through a contract entered into by 
                the designated Federal procurement official under this 
                section shall submit to that official in such form and 
                manner and at such times as such official prescribes, 
                the following:
                            (i) Request.--A request consisting of an 
                        enumeration of the technologies or services, 
                        respectively, that are desired by the State and 
                        units of local government within the State.
                            (ii) Payment.--Advance payment for each 
                        requested technology or service in an amount 
                        determined by the designated official based on 
                        estimated or actual costs of the technology or 
                        service and administrative costs incurred by 
                        such official.
                    (B) Other contracts.--The designated Federal 
                procurement official may award and designate contracts 
                under which States and units of local government may 
                procure anti-terrorism technologies and anti-terrorism 
                services directly from the contractors. No 
                indemnification may be provided under Public Law 85-804 
                pursuant to an exercise of authority under section 2 
                for procurements that are made directly between 
                contractors and States or units of local government.
            (2) Permitted catalog technologies and services.--A State 
        may include in a request submitted under paragraph (1) only a 
        technology or service listed in the catalog produced under 
        subsection (b)(1).
            (3) Coordination of local requests within state.--The 
        Governor of a State may establish such procedures as the 
        Governor considers appropriate for administering and 
        coordinating requests for anti-terrorism technologies or anti-
        terrorism services from units of local government within the 
        State.
            (4) Shipment and transportation costs.--A State requesting 
        anti-terrorism technologies or anti-terrorism services shall be 
        responsible for arranging and paying for any shipment or 
        transportation of the technologies or services, respectively, 
        to the State and localities within the State.
    (d) Reimbursement of Actual Costs.--In the case of a procurement 
made by or for a State or unit of local government under the procedures 
established under this section, the designated Federal procurement 
official shall require the State or unit of local government to 
reimburse the Department for the actual costs it has incurred for such 
procurement.
    (e) Time for Implementation.--The catalog and procedures required 
by subsection (b) of this section shall be completed as soon as 
practicable and no later than 210 days after the enactment of this Act.

SEC. 4. CONGRESSIONAL NOTIFICATION.

    (a) In General.--The President shall ensure that an appropriate 
officer of the United States submits to the appropriate committees of 
Congress a written notification of each contract for a procurement 
described in this Act for which indemnification is provided under 
Public Law 85-804 within 30 days after the contract is entered into.
    (b) Congressional Committees.--In this section, the term 
``appropriate committees of Congress'' means the following:
            (1) The Committee on Appropriations, Committee of Armed 
        Services, and Committee on Governmental Affairs of the Senate.
            (2) The Committee on Appropriations, Committee of Armed 
        Services, and Committee on Government Reform of the House of 
        Representatives.

SEC. 5. DEFINITIONS.

    In this Act:
            (1) Anti-terrorism technology and service.--The terms 
        ``anti-terrorism technology'' and ``anti-terrorism service'' 
        mean any product, equipment, or device, including information 
        technology, and any service, system integration, or other kind 
        of service (including a support service), respectively, that is 
        related to technology and is designed, developed, modified, or 
        procured for the purpose of preventing, detecting, identifying, 
        otherwise deterring, or recovering from acts of terrorism.
            (2) Act of terrorism.--The term ``act of terrorism'' means 
        a calculated attack or threat of attack against any person, 
        property, or infrastructure to inculcate fear, or to intimidate 
        or coerce a government, the civilian population, or any segment 
        thereof, in the pursuit of political, religious, or ideological 
        objectives.
            (3) Information technology.--The term ``information 
        technology'' has the meaning such term in section 11101(6) of 
        title 40, United States Code.
            (4) State.--The term ``State'' includes the District of 
        Columbia, the Commonwealth of Puerto Rico, the Commonwealth of 
        the Northern Mariana Islands, and any territory or possession 
        of the United States.
            (5) Unit of local government.--The term ``unit of local 
        government'' means any city, county, township, town, borough, 
        parish, village, or other general purpose political subdivision 
        of a State; an Indian tribe which performs law enforcement 
        functions as determined by the Secretary of the Interior; or 
        any agency of the District of Columbia Government or the United 
        States Government performing law enforcement functions in and 
        for the District of Columbia or the Trust Territory of the 
        Pacific Islands.

Summary: States that the discretionary authority of the President to provide indemnification for government contractors in the interest of national defense shall include the authority to indemnify a contractor or subcontractor in connection with the procurement of an anti-terrorism technology or service for preventing, detecting, identifying, deterring, or recovering from acts of terrorism. Authorizes the President, under such authority, to provide for: (1) indemnification for economic damages not fully covered by private liability insurance; and (2) the applicability of such authority to procurements by the U.S. Postal Service.Authorizes the President to indemnify State and local contractors in the procurement of an anti-terrorism technology or service, with limitations.Requires the President to designate an official to establish a program under which States and local governments may procure, through contracts entered into by such official, anti-terrorism technologies or services. Requires the designated official to produce and maintain a catalog of anti-terrorism technologies and services suitable for such procurement. Outlines required procedures for participating States and local governments.Directs the President to ensure that an appropriate officer of the United States notifies specified congressional committees of each procurement contract providing such indemnification.