Title: Federal Contracting for Peace and Security Act
Policy area: Government Operations and Politics

Summary:
Federal Contracting for Peace and Security Act
This bill requires executive agencies to terminate their contracts with companies conducting business operations in territory internationally recognized as Russia. This requirement ends when Russia takes steps to restore the safety, sovereignty, and condition of Ukraine.
The bill makes exceptions for (1) good faith efforts by a contractor to comply, (2) business operations in Russia authorized by a license issued by the Office of Foreign Assets Control or the Bureau of Industry and Security or otherwise allowed to operate notwithstanding the imposition of sanctions or export controls, and (3) contracts related to the operation and maintenance of U.S. Government consular offices and diplomatic posts in Russia.
The bill shall not apply to the procurement of products or services for (1) the benefit, either directly or through the efforts of regional allies, of Ukraine; or (2) humanitarian purposes to meet basic human needs.
The bill provides for a waiver where in the national interest of the United States.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 4930 Introduced in Senate (IS)]

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117th CONGRESS
  2d Session
                                S. 4930

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


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 22, 2022

  Mr. Peters introduced the following bill; which was read twice and 
referred to the Committee on Homeland Security and Governmental Affairs

_______________________________________________________________________

                                 A BILL


 
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,

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 
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.
    (b) Contracting Prohibition.--
            (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.
            (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 security 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 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.
                    (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 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:
                    (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 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) Action serving humanitarian 
                                purposes to meet basic human needs, 
                                including through a hospital, school, 
                                or non-profit organization.
                                    (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.
                                    (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.
                            (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.
                    (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 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.
                    (E) Executive agency.--The term ``executive 
                agency'' has the meaning given the term in section 133 
                of title 41, United States Code.
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