Federal Contracting for Peace and Security Act
Bill: S.4930 | Sponsor: Sen. Peters, Gary C. (D-MI)
Policy area: Government Operations and Politics

Summary:
Federal Contracting for Peace and Security Act
This bill requires executive agencies to terminate their contracts with entities conducting business operations in territory internationally recognized as Russia, with certain exceptions. This requirement ends when Russia takes steps to restore the safety, sovereignty, and condition of Ukraine.

To prohibit Federal procurement from companies operating in the Russian 
                  Federation, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

<DELETED>SECTION 1. SHORT TITLE.</DELETED>

<DELETED>    This Act may be cited as the ``Federal Contracting for 
Peace and Security Act''.</DELETED>

<DELETED>SEC. 2. FEDERAL CONTRACTING FOR PEACE AND SECURITY.</DELETED>

<DELETED>    (a) Purpose.--It is the policy of the Federal Government 
not to conduct business with companies that undermine United States 
national security interests by continuing to operate in the Russian 
Federation during its ongoing war of aggression against 
Ukraine.</DELETED>
<DELETED>    (b) Contracting Prohibition.--</DELETED>
        <DELETED>    (1) Prohibition.--The head of an executive agency 
        may not enter into, extend, or renew a covered contract with a 
        company that continues to conduct business operations in 
        territory internationally recognized as the Russian Federation 
        during the covered period.</DELETED>
        <DELETED>    (2) Exceptions.--</DELETED>
                <DELETED>    (A) Good faith exemption.--The Office of 
                Management and Budget, in consultation with the General 
                Services Administration, may exempt a contractor from 
                the prohibition in paragraph (1) if the contractor 
                has--</DELETED>
                        <DELETED>    (i) pursued and continues to 
                        pursue all reasonable steps in demonstrating a 
                        good faith effort to comply with the 
                        requirements of this Act; and</DELETED>
                        <DELETED>    (ii) provided to the executive 
                        agency a reasonable, written plan to achieve 
                        compliance with such requirements.</DELETED>
                <DELETED>    (B) Permissible operations.--The 
                prohibition in paragraph (1) shall not apply to 
                business operations in Russia authorized by a license 
                issued by the Office of Foreign Assets Control or the 
                Bureau of Industry and Security or is otherwise allowed 
                to operate notwithstanding the imposition of sanctions 
                or export controls.</DELETED>
                <DELETED>    (C) American diplomatic mission in 
                russia.--The prohibition in paragraph (1) shall not 
                apply to contracts related to the operation and 
                maintenance of the United States Government's consular 
                offices and diplomatic posts in Russia.</DELETED>
                <DELETED>    (D) Individual contracts.--The prohibition 
                under paragraph (1) shall not apply to any contract 
                that is any of the following:</DELETED>
                        <DELETED>    (i) For the benefit, either 
                        directly or through the efforts of regional 
                        allies, of the country of Ukraine.</DELETED>
                        <DELETED>    (ii) For humanitarian purposes to 
                        meet basic human needs.</DELETED>
        <DELETED>    (3) National security and public interest 
        waivers.--</DELETED>
                <DELETED>    (A) In general.--The head of an executive 
                agency is authorized to waive the prohibition under 
                paragraph (1) with respect to a covered contract if the 
                head of the agency certifies in writing to the 
                President that such waiver is for the national security 
                of the United States or in the public interest of the 
                United States, and includes in such certification a 
                justification for the waiver and description of the 
                contract to which the waiver applies. The authority in 
                this subparagraph may not be delegated below the level 
                of the senior procurement executive of the 
                agency.</DELETED>
                <DELETED>    (B) Congressional notification.--The head 
                of an executive agency shall, not later than 7 days 
                before issuing a waiver described in subparagraph (A), 
                submit to the appropriate congressional committees the 
                certification described in such subparagraph.</DELETED>
        <DELETED>    (4) Emergency rulemaking authority.--Not later 
        than 60 days after the date of the enactment of this Act, the 
        Director of the Office of Management and Budget, in 
        consultation with the Administrator of General Services and the 
        Secretary of Defense, shall promulgate regulations for agency 
        implementation of this Act using emergency rulemaking 
        procedures while considering public comment to the greatest 
        extent practicable, that includes the following:</DELETED>
                <DELETED>    (A) A list of equipment, facilities, 
                personnel, products, services, or other items or 
                activities, the engagement with which would be 
                considered business operations, subject to the 
                prohibition under paragraph (1).</DELETED>
                <DELETED>    (B) A requirement for a contractor or 
                offeror to represent whether such contractor or offeror 
                uses any of the items on the list described in 
                subparagraph (A).</DELETED>
                <DELETED>    (C) A description of the process for 
                determining a good faith exemption described under 
                paragraph (2).</DELETED>
        <DELETED>    (5) Definitions.--In this section:</DELETED>
                <DELETED>    (A) Appropriate congressional 
                committees.--The term ``appropriate congressional 
                committees'' means the Committee on Homeland Security 
                and Governmental Affairs of the Senate and the 
                Committee on Oversight and Reform of the House of 
                Representatives.</DELETED>
                <DELETED>    (B) Business operations.--</DELETED>
                        <DELETED>    (i) In general.--Except as 
                        provided in clauses (ii) and (iii), the term 
                        ``business operations'' means engaging in 
                        commerce in any form, including acquiring, 
                        developing, selling, leasing, or operating 
                        equipment, facilities, personnel, products, 
                        services, personal property, real property, or 
                        any other apparatus of business or 
                        commerce.</DELETED>
                        <DELETED>    (ii) Exceptions.--The term 
                        ``business operations'' does not include any of 
                        the following:</DELETED>
                                <DELETED>    (I) Action taken for the 
                                benefit of the country of 
                                Ukraine.</DELETED>
                                <DELETED>    (II) Action serving 
                                humanitarian purposes to meet basic 
                                human needs, including through a 
                                hospital, school, or non-profit 
                                organization.</DELETED>
                                <DELETED>    (III) The provision of 
                                products or services for compliance 
                                with legal, reporting, or other 
                                requirements of the laws or standards 
                                of countries other than the Russian 
                                Federation.</DELETED>
                                <DELETED>    (IV) Journalistic and 
                                publishing activities, news reporting, 
                                or the gathering and dissemination of 
                                information, informational materials, 
                                related services, or transactions 
                                ordinarily incident to journalistic and 
                                publishing activities.</DELETED>
                        <DELETED>    (iii) Exception for suspension or 
                        termination actions.--The term ``business 
                        operations'' does not include action taken to 
                        support the suspension or termination of 
                        business operations (as described in clause 
                        (i)) for the duration of the covered period, 
                        including--</DELETED>
                                <DELETED>    (I) an action to secure or 
                                divest from facilities, property, or 
                                equipment;</DELETED>
                                <DELETED>    (II) the provision of 
                                products or services provided to reduce 
                                or eliminate operations in territory 
                                internationally recognized as the 
                                Russian Federation or to comply with 
                                sanctions relating to the Russian 
                                Federation; and</DELETED>
                                <DELETED>    (III) activities that are 
                                incident to liquidating, dissolving, or 
                                winding down a subsidiary or legal 
                                entity in Russia through which 
                                operations had been 
                                conducted.</DELETED>
                <DELETED>    (C) Covered contract.--The term ``covered 
                contract'' means a prime contract entered into by an 
                executive agency with a company conducting business 
                operations in territory internationally recognized as 
                the Russian Federation during the covered 
                period.</DELETED>
                <DELETED>    (D) Covered period.--The term ``covered 
                period'' means the period of time beginning 90 days 
                after the date of the enactment of this Act and ending 
                on a date that is determined by the Secretary of State 
                based on steps taken by the Russian Federation to 
                restore the safety, sovereignty, and condition of the 
                country of Ukraine, or 10 years after the date of the 
                enactment of this Act, whichever is sooner.</DELETED>
                <DELETED>    (E) Executive agency.--The term 
                ``executive agency'' has the meaning given the term in 
                section 133 of title 41, United States Code.</DELETED>

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Federal Contracting for Peace and 
Security Act''.

SEC. 2. FEDERAL CONTRACTING FOR PEACE AND SECURITY.

    (a) Purpose.--It is the policy of the Federal Government not to 
contract with entities that undermine United States interests by 
continuing to conduct business operations in the Russian Federation 
during its ongoing war of aggression against Ukraine.
    (b) Contracting Prohibition.--
            (1) Prohibition.--The head of an executive agency may not 
        enter into, extend, or renew a covered contract with an entity 
        that continues to conduct business operations in the territory 
        internationally recognized as the Russian Federation during the 
        covered period.
            (2) Exceptions.--
                    (A) Good faith exemption.--The Office of Management 
                and Budget, in consultation with the General Services 
                Administration, may exempt a contractor from the 
                prohibition in paragraph (1) if the contractor has--
                            (i) pursued and continues to pursue all 
                        reasonable steps in demonstrating a good faith 
                        effort to comply with the requirements of this 
                        Act; and
                            (ii) provided to the executive agency a 
                        reasonable, written plan to achieve compliance 
                        with such requirements.
                    (B) Permissible operations.--The prohibition in 
                paragraph (1) shall not apply to business operations in 
                Russia authorized by a license issued by the Office of 
                Foreign Assets Control or the Bureau of Industry and 
                Security or is otherwise allowed to operate 
                notwithstanding the imposition of sanctions or export 
                controls.
                    (C) American diplomatic mission in russia.--The 
                prohibition in paragraph (1) shall not apply to 
                contracts related to the operation and maintenance of 
                the United States Government's consular offices and 
                diplomatic posts in Russia.
                    (D) Individual contracts.--The prohibition under 
                paragraph (1) shall not apply to any contract that is 
                any of the following:
                            (i) For the benefit, either directly or 
                        through the efforts of regional allies, of the 
                        country of Ukraine.
                            (ii) For humanitarian purposes to meet 
                        basic human needs.
            (3) National interest and public interest waivers.--
                    (A) In general.--The head of an executive agency is 
                authorized to waive the prohibition under paragraph (1) 
                with respect to a covered contract if the head of the 
                agency certifies in writing to the President that such 
                waiver is for the national interest of the United 
                States or in the public interest of the United States, 
                and includes in such certification a justification for 
                the waiver and description of the contract to which the 
                waiver applies. The authority in this subparagraph may 
                not be delegated below the level of the senior 
                procurement executive of the agency.
                    (B) Congressional notification.--The head of an 
                executive agency shall, not later than 7 days before 
                issuing a waiver described in subparagraph (A), submit 
                to the appropriate congressional committees the 
                certification described in such subparagraph.
            (4) Emergency rulemaking authority.--Not later than 180 
        days after the date of the enactment of this Act, the Director 
        of the Office of Management and Budget, in consultation with 
        the Administrator of General Services and the Secretary of 
        Defense, shall promulgate regulations for agency implementation 
        of this Act using emergency rulemaking procedures while 
        considering public comment to the greatest extent practicable, 
        that includes the following:
                    (A) A list of equipment, facilities, personnel, 
                products, services, or other items or activities, the 
                engagement with which would be considered business 
                operations, subject to the prohibition under paragraph 
                (1).
                    (B) A requirement for a contractor or offeror to 
                represent whether such contractor or offeror uses any 
                of the items, or is engaged in any of the activities on 
                the list, described in subparagraph (A).
                    (C) A description of the process for determining a 
                good faith exemption described under paragraph (2).
            (5) Definitions.--In this section:
                    (A) Appropriate congressional committees.--The term 
                ``appropriate congressional committees'' means the 
                Committee on Homeland Security and Governmental Affairs 
                of the Senate and the Committee on Oversight and Reform 
                of the House of Representatives.
                    (B) Business operations.--
                            (i) In general.--Except as provided in 
                        clauses (ii) and (iii), the term ``business 
                        operations'' means engaging in commerce in any 
                        form, including acquiring, developing, selling, 
                        leasing, or operating equipment, facilities, 
                        personnel, products, services, personal 
                        property, real property, or any other apparatus 
                        of business or commerce.
                            (ii) Exceptions.--The term ``business 
                        operations'' does not include any of the 
                        following:
                                    (I) Action taken for the benefit of 
                                the country of Ukraine.
                                    (II) Activities to support 
                                humanitarian projects to meet basic 
                                human needs in Ukraine or the Russian 
                                Federation, including--
                                            (aa) drought and flood 
                                        relief;
                                            (bb) food, nutrition, and 
                                        medicine distribution;
                                            (cc) the provision of 
                                        health services;
                                            (dd) assistance for 
                                        vulnerable or displaced 
                                        populations, including 
                                        individuals with disabilities 
                                        and the elderly; and
                                            (ee) environmental 
                                        programs.
                                    (III) Activities to support 
                                education in Ukraine or the Russian 
                                Federation, including combating 
                                illiteracy, increasing access to 
                                education, international exchanges, and 
                                assisting education reform projects.
                                    (IV) Activities to support non-
                                commercial development projects 
                                directly benefitting the people of 
                                Ukraine or the Russian Federation, 
                                including those related to health, food 
                                security, and water and sanitation.
                                    (V) The provision of products or 
                                services for compliance with legal, 
                                reporting, or other requirements of the 
                                laws or standards of countries other 
                                than the Russian Federation.
                                    (VI) Journalistic and publishing 
                                activities, news reporting, or the 
                                gathering and dissemination of 
                                information, informational materials, 
                                related services, or transactions 
                                ordinarily incident to journalistic and 
                                publishing activities.
                                    (VII) Research activities, 
                                including medical research, for 
                                purposes of benefit to the general 
                                public.
                            (iii) Exception for suspension or 
                        termination actions.--The term ``business 
                        operations'' does not include action taken to 
                        support the suspension or termination of 
                        business operations (as described in clause 
                        (i)) for the duration of the covered period, 
                        including--
                                    (I) an action to secure or divest 
                                from facilities, property, or 
                                equipment;
                                    (II) the provision of products or 
                                services provided to reduce or 
                                eliminate operations in territory 
                                internationally recognized as the 
                                Russian Federation or to comply with 
                                sanctions relating to the Russian 
                                Federation; and
                                    (III) activities that are incident 
                                to liquidating, dissolving, or winding 
                                down a subsidiary or legal entity in 
                                Russia through which operations had 
                                been conducted, including actions 
                                required to meet any judicial or 
                                regulatory requirements or orders of 
                                the Russian Federation.
                    (C) Covered contract.--The term ``covered 
                contract'' means a prime contract entered into by an 
                executive agency with a company conducting business 
                operations in territory internationally recognized as 
                the Russian Federation during the covered period.
                    (D) Covered period.--The term ``covered period'' 
                means the period of time beginning 180 days after the 
                date of the enactment of this Act and ending on a date 
                that is determined by the Secretary of State based on 
                steps taken by the Russian Federation to restore the 
                safety, sovereignty, and condition of the country of 
                Ukraine, or 10 years after the date of the enactment of 
                this Act, whichever is sooner.
                    (E) Executive agency.--The term ``executive 
                agency'' has the meaning given the term in section 133 
                of title 41, United States Code.
                                                       Calendar No. 665

117th CONGRESS

  2d Session

                                S. 4930

                          [Report No. 117-266]

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