II Calendar No. 665 117th CONGRESS 2d Session S. 4930 [Report No. 117–266] 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 December 15, 2022 Reported by Mr. Peters , with an amendment Strike out all after the enacting clause and insert the part printed in italic A BILL To prohibit Federal procurement from companies operating in the Russian Federation, and for other purposes.

1. Short title This Act may be cited as the Federal Contracting for Peace and Security Act . 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.

1. Short title This Act may be cited as the Federal Contracting for Peace and Security Act . 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.

December 15, 2022 Reported with an amendment