Sec. 3. Prohibition on Federal contracting with entities that are simultaneously aiding in the efforts of covered foreign entities
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In order to end conflicts of interest in Federal contracting among consulting firms that simultaneously contract with the United States Government and covered foreign entities, the Federal Acquisition Regulatory Council shall, not later than 1 year after the date of the enactment of this Act, amend the Federal Acquisition Regulation— to require any entity that makes an offer or quotation to provide consulting services to an executive agency, including services described in the North American Industry Classification System's Industry Group code 5416, prior to entering into a Federal contract, to certify that neither it nor any of its subsidiaries or affiliates hold a consulting contract with one or more covered foreign entities; and to prohibit Federal contracts for consulting services from being awarded to an entity that provides consulting services, including services described under the North American Industry Classification System's Industry Group code 5416 if the entity or any of its subsidiaries or affiliates are determined, based on the self-certification required under paragraph (1), to be a contractor of, or are otherwise providing consulting services to, a covered foreign entity.
Subject to the limitations in paragraph (2), the head of an executive agency may waive the conflict of interest restrictions under this section on a case-by-case basis if— the agency head, in consultation with the Secretary of Defense and the Director of National Intelligence, determines the waiver to be in the national security interests of the United States; the agency head determines that no other entity without a conflict of interest under this section can perform the work for the Federal contract; the head of the executive agency submits to the Director of the Office of Management and Budget a notification of such waiver at least 5 days prior to issuing the waiver; the head of the executive agency submits to the appropriate congressional committees a notification of such waiver within 30 days in unclassified form (accompanied by a classified annex if necessary) and offers a briefing to those committees on the information included in the notification; and the contracting agency publishes in an easily accessible location on the agency’s public website a list of the names of the covered foreign entities to which the entity receiving a waiver provides consulting services, unless the head of the applicable executive agency, with the approval of the Director of the Office of Management and Budget, and in consultation with the Secretary of Defense and Director of National Intelligence, determines that such public disclosure would directly harm the national security interests of the United States.
A waiver granted under paragraph
(1)shall last for a period of not more than 365 days. The head of the applicable executive agency, with the approval of the Director of the Office of Management and Budget, and in consultation with the Secretary of Defense and Director of National Intelligence, may extend a waiver granted under such paragraph one time, for a period up to 180 days after the date on which the waiver would otherwise expire, if such an extension is in the national security interests of the United States and the Director of the Office of Management and Budget submits to the appropriate congressional committees a notification of such waiver and offers a briefing to those committees on the information included in the notification. Not more than one total waiver across all executive agencies may be granted under paragraph
(1)to a single entity at a given time. The notification required under subparagraphs
(C)and
(D)of paragraph
(1)shall include the following information: Information on the contractor, including— the name, address, and corporate structure of the contractor; the name, address, and corporate structure of any subsidiaries or subcontractors involved; all foreign ownership of the contractor; all foreign real estate owned by the contractor; and an employee designated as responsible for managing any conflict of interests that may arise as part of the contract. Information on the covered foreign entities involved to the extent known by the contractor, including— the name and address of the covered foreign entity; the name and address of any subsidiaries or subcontractors involved; a complete history of any contracts between the covered foreign entity and the contractor; all ownership of the covered foreign entity; and any legal authorities providing a foreign government with access or control over the covered foreign entity. Information on the nature of the work performed for the covered foreign entities, including— the projected and actual dollar value of the contract; the projected and actual duration of the contract; the projected and actual number of employees to work on the contract; the projected and actual number of employees who are United States citizens who work on the contract; the projected and actual number of employees who currently or formerly held security clearances with the United States Government who work on the contract; the subject matter of the contract; any materials provided to the covered foreign entity in order to secure the contract; any tracking number used by the covered foreign entity to identify the contract; any tracking number or information used by the contractor to identify the contract; and any military or intelligence applications that could benefit from the contract. Justification of the executive agency’s need for providing the waiver. An acceptable management oversight plan to ensure that the work performed for the covered foreign entities does not compromise the work being performed for the Federal Government or harm the national security of the United States, to be approved at not lower than the Deputy Secretary level at the contracting agency. The executive agency granting a waiver under this subsection shall require the contractor, in the event the contractor identifies any of the following during the performance of the contract, to report the following information to the executive agency: Any human rights violations that are known to the contractor through information provided to the contractor in the course of the contract. Any religious liberty violations that are known to the contractor through information provided to the contractor in the course of the contract. Any risks to United States economic or national security identified by the contractor in the course of the contract.