Bill Summary
This legislation aims to address conflicts of interest and corruption within the Department of Defense by implementing stricter revolving door requirements and transparency measures for contractors and former DoD officials. It also prohibits senior national security officials from advising foreign governments and includes provisions for redacting certain information for privacy purposes.
Possible Impacts
1. The new legislation will affect former Department of Defense officials by increasing the time limit for working for contractors from two to four years, and prohibiting them from receiving compensation from the contractor for that period of time.
2. The legislation will require defense contractors to submit an annual report listing any former Department of Defense officials who received compensation from the contractor within the past four years, as well as disclose any lobbying activities and provide copies of any documents transmitted to the Department of Defense.
3. The legislation will also impact senior national security officials by banning them from advising foreign governments, and requiring transparency and disclosure for government contracts and high-ranking military officers. This includes a ban on former military and civilian intelligence officers from foreign employment and the publication of contractor evaluation ratings.
[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5306 Introduced in House (IH)]
<DOC>
118th CONGRESS
1st Session
H. R. 5306
To promote ethics and prevent corruption in Department of Defense
contracting and other activities, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
August 29, 2023
Mr. Kim of New Jersey introduced the following bill; which was referred
to the Committee on Armed Services, and in addition to the Committees
on the Judiciary, and Oversight and Accountability, for a period to be
subsequently determined by the Speaker, in each case for consideration
of such provisions as fall within the jurisdiction of the committee
concerned
_______________________________________________________________________
A BILL
To promote ethics and prevent corruption in Department of Defense
contracting and other activities, 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; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Department of
Defense Ethics and Anti-Corruption Act of 2023''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--REVOLVING DOOR AND CONTRACTOR INFLUENCE
Sec. 101. Heightened revolving door requirements.
Sec. 102. Requirements for defense contractors relating to certain
former Department of Defense officials and
lobbying activities.
Sec. 103. Ban on hiring contracting officials enforceable on certain
contracts.
Sec. 104. Ban on hiring senior officials by giant defense contractors.
Sec. 105. Modification of prohibition on lobbying activities with
respect to the Department of Defense by
certain officers of the Armed Forces and
civilian employees of the Department of
Defense following separation from military
service or employment with the Department.
Sec. 106. Enhancement of recusal for conflicts of personal interest
requirements for Department of Defense
officers and employees.
Sec. 107. Prohibition on ownership or trading of stocks in certain
companies by Department of Defense officers
and employees.
TITLE II--LIMITING FOREIGN INFLUENCE
Sec. 201. Ban on senior national security officials advising foreign
governments.
Sec. 202. Ban on former military and civilian intelligence officers
from foreign employment.
TITLE III--TRANSPARENCY
Sec. 301. Affirmative contractor record disclosures.
Sec. 302. Publication of contractor evaluation ratings.
Sec. 303. Ownership of information.
Sec. 304. Financial disclosure by large contractors.
Sec. 305. Availability on the internet of certain information about
officers serving in general or flag officer
grades.
TITLE I--REVOLVING DOOR AND CONTRACTOR INFLUENCE
SEC. 101. HEIGHTENED REVOLVING DOOR REQUIREMENTS.
Section 847 of the National Defense Authorization Act for Fiscal
Year 2008 (Public Law 110-181; 10 U.S.C. 1701 note) is amended--
(1) in subsection (a)(1), by striking ``within two years of
leaving service'' and inserting ``within four years of leaving
service''; and
(2) in subsection (b)--
(A) by striking ``Requirement.--Each request'' and
inserting the following: ``Requirement.--
``(1) Database.--Each request'';
(B) by striking ``retained by the Department of
Defense in a central database or repository maintained
by the General Counsel of the Department for not less
than five years'' and inserting ``retained by the
Department of Defense in a central database or
repository maintained by the Standards of Conduct
Office of the Department for not less than 10 years'';
(C) by inserting ``and shall be posted on a
publicly available internet website of the General
Counsel Standards of Conduct Office'' after ``opinion
was provided''; and
(D) by inserting after paragraph (1) the following
new paragraph:
``(2) Inspector general review.--The Inspector General of
the Department of Defense shall conduct periodic reviews not
less than biannually to ensure that written opinions are being
requested, provided, and retained in accordance with the
requirements of this section, as well as any related
matters.''.
SEC. 102. REQUIREMENTS FOR DEFENSE CONTRACTORS RELATING TO CERTAIN
FORMER DEPARTMENT OF DEFENSE OFFICIALS AND LOBBYING
ACTIVITIES.
(a) In General.--Chapter 365 of title 10, United States Code, is
amended by adding at the end the following new section:
``Sec. 4705. Defense contractors report: requirements concerning former
Department of Defense officials and lobbying activities
``(a) In General.--Each contract for the procurement of goods or
services in excess of $10,000,000, other than a contract for the
procurement of office supplies or food and beverage (vending) services,
that is entered into by the Department of Defense shall include a
provision under which the contractor agrees to submit to the Secretary
of Defense, not later than April 1 of each year such contract is in
effect, a written report setting forth the information required by
subsection (b). The Secretary of Defense shall make these reports
publicly available on a government website not later than July 1 of
each year such contract is in effect.
``(b) Report Information.--Except as provided in subsection (c), a
report by a contractor under subsection (a) shall--
``(1) list the name of each person who--
``(A) is a former officer or employee of the
Department of Defense or a former or retired member of
the armed forces who served--
``(i) in an Executive Schedule position
under subchapter II of chapter 53 of title 5;
``(ii) in a position in the Senior
Executive Service under subchapter VIII of
chapter 53 of title 5;
``(iii) in a position compensated at a rate
of pay for grade O-6 or above under section 201
of title 37; or
``(iv) as a program manager, deputy program
manager, procuring contracting officer,
administrative contracting officer, source
selection authority, member of the source
selection evaluation board, or chief of a
financial or technical evaluation team for a
contract with a value in excess of $10,000,000;
and
``(B) during the preceding calendar year was
provided compensation by the contractor, if such
compensation was first provided by the contractor not
more than four years after such officer, employee, or
member left service in the Department of Defense;
``(2) in the case of each person listed under subparagraph
(A)--
``(A) identify the agency in which such person was
employed or served on active duty during the last two
years of such person's service with the Department of
Defense;
``(B) state such person's job title and identify
each major defense system, contract, modification,
subcontract, task order, and delivery order in excess
of $10,000,000, if any, on which such person performed
any work with the Department of Defense during the last
two years of such person's service with the Department;
and
``(C) state such person's current job title with
the contractor and identify each major defense system,
contract, modification, subcontract, task order, and
delivery order in excess of $10,000,000, on which such
person has performed any work on behalf of the
contractor; and
``(3) if the contractor is a client, include--
``(A) a statement that--
``(i) lists each specific issue for which
the contractor, any employee of the contractor,
or any lobbyist paid by the contractor engaged
in lobbying activities with the Department of
Defense;
``(ii) specifies the Federal rule or
regulation, Executive order, or other program,
policy, contract, or position of the Department
of Defense to which the lobbying activities
described in clause (i) related;
``(iii) lists each lobbying activity
relating to the Department of Defense that the
contractor, any employee of the contractor, or
any lobbyist paid by the contractor has engaged
in on behalf of the contractor, including--
``(I) each document prepared by the
contractor, any employee of the
contractor, or any lobbyist paid by the
contractor that was submitted to an
officer or employee of the Department
of Defense by the lobbyist;
``(II) each meeting that was a
lobbying contact with an officer or
employee of the Department of Defense,
including the subject of the meeting,
the date of the meeting, and the name
and position of each individual who
attended the meeting;
``(III) each phone call made to an
officer or employee of the Department
of Defense that was a lobbying contact,
including the subject of the phone
call, the date of the phone call, and
the name and position of each
individual who was on the phone call;
and
``(IV) each electronic
communication (including emails, text
messages, and other forms of electronic
communication) sent to an officer or
employee of the Department of Defense
that was a lobbying contact, including
the subject of the electronic
communication, the date of the
electronic communication, and the name
and position of each individual who
received the electronic communication;
``(iv) lists the name of each employee of
the contractor who--
``(I) did not participate in a
lobbying contact with an officer or
employee of the Department of Defense;
and
``(II) engaged in lobbying
activities in support of a lobbying
contact with an officer or employee of
the Department of Defense; and
``(v) describes the lobbying activities
referred to in clause (iv)(II); and
``(B) a copy of any document transmitted to an
officer or employee of the Department of Defense in the
course of the lobbying activities described in
subparagraph (A)(iv)(II).
``(c) Definitions.--In subsection (b)(3), the terms `client',
`lobbying activities', `lobbying contact', and `lobbyist' have the
meanings given the terms in section 3 of the Lobbying Disclosure Act of
1995 (2 U.S.C. 1602).''.
(b) Effective Date.--This section and the amendments made by this
section shall apply with respect to contracts entered into on or after
that date.
SEC. 103. BAN ON HIRING CONTRACTING OFFICIALS ENFORCEABLE ON CERTAIN
CONTRACTS.
(a) Prohibition.--
(1) In general.--Any contract for the procurement of goods
or services, other than a contract for the procurement of
commercial products or services, with a value of excess of
$10,000,000 shall include a contract clause prohibiting the
contractor from providing compensation to a former Department
of Defense official described in paragraph (2) within four
years after such former official leaves service in the
Department of Defense.
(2) Covered department of defense official.--An official or
former official of the Department of Defense is covered by the
requirements of this section if such official or former
official is a former officer or employee of the Department of
Defense or a former or retired member of the Armed Forces who
served as a program manager, deputy program manager, procuring
contracting officer, administrative contracting officer, source
selection authority, member of the source selection evaluation
board, or chief of a financial or technical evaluation team or
directly managed someone in these roles for a contract with a
value in excess of $10,000,000, and such person--
(A) participated in the contract or license
selection;
(B) determined or signed off on the technical
requirements of the contract or license; or
(C) granted the contract or license.
(b) Administrative Actions.--In the event that an official or
former official of the Department of Defense described in subsection
(a)(2), or a Department of Defense contractor, knowingly fails to
comply with the requirements of this subsection, the Secretary of
Defense may take any of the administrative actions set forth in section
2105 of title 41, United States Code, that the Secretary of Defense
determines to be appropriate.
(c) Definitions.--In this section:
(1) Commercial product.--The term ``commercial product''
means any of the following:
(A) A product, other than real property, that--
(i) is customarily used by the general
public or by nongovernmental entities for
purposes other than governmental purposes; and
(ii) has been sold, leased, or licensed to
the general public.
(B) A product that--
(i) evolved from a product described in
subparagraph (A) through advances in technology
or performance; and
(ii) is not yet available in the commercial
marketplace but will be available in the
commercial marketplace in time to satisfy the
delivery requirements under a Federal
Government solicitation.
(C) A product that would satisfy the criteria in
subparagraph (A) or (B) were it not for--
(i) modifications customarily available in
the commercial marketplace; or
(ii) minor modifications made to meet
Federal Government requirements.
(D) Any combination of products meeting the
requirements of subparagraph (A), (B), or (C) that are
customarily combined and sold in combination to the
general public.
(E) A product, or combination of products, referred
to in subparagraphs (A) through (D), even though the
product, or combination of products, is transferred
between or among separate divisions, subsidiaries, or
affiliates of a contractor.
(F) A nondevelopmental item if the procuring agency
determines, in accordance with conditions in the
Federal Acquisition Regulation, that--
(i) the product was developed exclusively
at private expense; and
(ii) has been sold in substantial
quantities, on a competitive basis, to multiple
State and local governments or to multiple
foreign governments.
(2) Commercial service.--The term ``commercial service''
means any of the following:
(A) Installation services, maintenance services,
repair services, training services, and other services
if--
(i) those services are procured for support
of a commercial product, regardless of whether
the services are provided by the same source or
at the same time as the commercial product; and
(ii) the source of the services provides
similar services contemporaneously to the
general public under terms and conditions
similar to those offered to the Federal
Government.
(B) Services of a type sold competitively, in
substantial quantities, in the commercial marketplace--
(i) based on established catalog or market
prices;
(ii) for specific tasks performed or
specific outcomes to be achieved; and
(iii) under standard commercial terms and
conditions.
(C) A service described in subparagraph (A) or (B),
even though the service is transferred between or among
separate divisions, subsidiaries, or affiliates of a
contractor.
SEC. 104. BAN ON HIRING SENIOR OFFICIALS BY GIANT DEFENSE CONTRACTORS.
(a) Prohibition.--
(1) In general.--Any Department of Defense contract for the
procurement of goods or services with a giant defense
contractor shall include a contract clause prohibiting the
contractor from hiring or paying (including as a consultant,
lobbyist, or lawyer) any covered Department of Defense official
within four years after such former official leaves service in
the Department of Defense.
(2) Definitions.--In this section:
(A) Covered department of defense official.--The
term ``covered Department of Defense official'' means a
former officer or employee of the Department of Defense
or a former or retired member of the Armed Forces who
served--
(i) in an Executive Schedule position under
subchapter II of chapter 53 of title 5, United
States Code;
(ii) in a position in the Senior Executive
Service under subchapter VIII of chapter 53 of
title 5, United States Code;
(iii) in a position compensated at a rate
of pay for grade O-6 or above under section 201
of title 37, United States Code; or
(iv) in a supervisory position compensated
at a rate of pay for grade GS-15 of the General
Schedule under section 5107 of title 5, United
States Code, or higher.
(B) Giant defense contractor.--The term ``giant
defense contractor'' means a contractor (other than an
institution of higher education) that received an
average of more than $1,000,000,000 in annual revenue
from the Department of Defense or the Department of
Energy for contracted work related to the United States
nuclear program in the previous three fiscal years.
(b) Administrative Actions.--In the event that a covered Department
of Defense official, or a Department of Defense contractor, knowingly
fails to comply with the requirements of this section, the Secretary of
Defense may take any of the administrative actions set forth in section
2105 of title 41, United States Code, that the Secretary of Defense
determines to be appropriate.
(c) Annual Report.--The Inspector General of the Department of
Defense shall submit to the Committee on Armed Services of the Senate
and the Committee on Armed Services of the House of Representatives an
annual report listing the officials or former officials of the
Department of Defense described in subsection (a)(2)(A), or any
Department of Defense contractor, subject to any of the administrative
actions from the Secretary of Defense under the requirements of
subsection (b) during the prior calendar year.
SEC. 105. MODIFICATION OF PROHIBITION ON LOBBYING ACTIVITIES WITH
RESPECT TO THE DEPARTMENT OF DEFENSE BY CERTAIN OFFICERS
OF THE ARMED FORCES AND CIVILIAN EMPLOYEES OF THE
DEPARTMENT OF DEFENSE FOLLOWING SEPARATION FROM MILITARY
SERVICE OR EMPLOYMENT WITH THE DEPARTMENT.
Section 1045 of the National Defense Authorization Act for Fiscal
Year 2018 (Public Law 115-91; 131 Stat. 1555) is amended--
(1) in subsection (a)--
(A) in the subsection heading, by striking ``Two-
year Prohibition'' and inserting ``Four-year
Prohibition'';
(B) in paragraph (1), by striking ``during the two-
year period'' and inserting ``during the four-year
period''; and
(C) in paragraph (2)(A), by striking ``grade O-9 or
higher'' and inserting ``grade O-6 or higher'';
(2) by striking subsection (b);
(3) by redesignating subsection (c) as subsection (b); and
(4) in subsection (b)(1)(A), as redesignated by paragraph
(3), by inserting ``, including activities in support of
lobbying contact with an officer or employee of the Department
of Defense'' before the period at the end.
SEC. 106. ENHANCEMENT OF RECUSAL FOR CONFLICTS OF PERSONAL INTEREST
REQUIREMENTS FOR DEPARTMENT OF DEFENSE OFFICERS AND
EMPLOYEES.
Section 1117 of the National Defense Authorization Act for Fiscal
Year 2022 (Public Law 117-81; 10 U.S.C. 971 note prec.) is amended--
(1) in subsection (a)--
(A) by striking ``particular matter'' and inserting
``covered matter'';
(B) by striking ``where any of the following
organizations is a party or represents a party to the
matter:'' and inserting ``where any of the following
organizations or entities is a party or represents a
party to the matter, or where the officer or employee
knows, or reasonably should know, the matter is likely
to have a direct and predictable effect on the
financial interests of any of the following
organizations or entities:'';
(C) in paragraph (1), by striking ``2 years'' and
inserting ``4 years''; and
(D) by inserting after paragraph (2) the following
new paragraph:
``(3) A former direct competitor or client of any
organization for which the officer or employee has served as an
employee, officer, director, trustee, or general partner in the
past 4 years.'';
(2) by redesignating subsection (c) as subsection (d); and
(3) by inserting after subsection (b) the following new
subsection:
``(c) Covered Matter Defined.--In this section, the term `covered
matter'--
``(1) means any matter that involves deliberation,
decision, or action that is focused upon the interests of a
specific person or a discrete and identifiable class of
persons; and
``(2) includes policy making that is narrowly focused on
the interests of a discrete and identifiable class of
persons.''.
SEC. 107. PROHIBITION ON OWNERSHIP OR TRADING OF STOCKS IN CERTAIN
COMPANIES BY DEPARTMENT OF DEFENSE OFFICERS AND
EMPLOYEES.
(a) Prohibition on Ownership and Trading Publicly Traded Stocks.--
Section 988(a) of title 10, United States Code, is amended by striking
``if that company is one of the 10 entities awarded the most amount of
contract funds by the Department of Defense in a fiscal year during the
five preceding fiscal years'' and inserting ``if, during the preceding
calendar year, the company received more than $100,000,000 in revenue
from the Department of Defense, including through 1 or more contracts
with the Department''.
(b) Definition of Covered Official.--Section 988 of title 10,
United States Code, is amended--
(1) by redesignating subsection (c) as subsection (d); and
(2) in paragraph (1) of subsection (d), as redesignated by
paragraph (1) of this section, by striking ``means any'' and
all that follows through the period at the end of subparagraph
(B) and inserting ``means any official described in section
847(c) of the National Defense Authorization Act for Fiscal
Year 2008 (10 U.S.C. 1701 note).''.
(c) Penalty.--Section 988 of title 10, United States Code, as
amended by subsection (b), is further amended by inserting after
subsection (b) the following new subsection:
``(c) Penalties.--Whoever violates subsection (a) shall be subject
to the penalties set forth in section 216 of title 18, United States
Code.''.
TITLE II--LIMITING FOREIGN INFLUENCE
SEC. 201. BAN ON SENIOR NATIONAL SECURITY OFFICIALS ADVISING FOREIGN
GOVERNMENTS.
Section 207(f) of title 18, United States Code, is amended--
(1) by redesignating paragraph (3) as paragraph (4); and
(2) by inserting after paragraph (2) the following new
paragraph:
``(3) Permanent restriction.--Any person who has been
employed as a senior official in the White House, the
Department of State, the Department of Defense, or the
Department of the Treasury who performs compensated work for
the benefit of a foreign entity that stands to benefit from the
knowledge obtained by the person as a result of such United
States Government employment, shall be punished as provided in
section 216 of this title.''.
SEC. 202. BAN ON FORMER MILITARY AND CIVILIAN INTELLIGENCE OFFICERS
FROM FOREIGN EMPLOYMENT.
All military and civilian intelligence personnel employed by a
military intelligence organization possessing a security clearance,
upon separation from service or resignation, are prohibited from
obtaining employment with a foreign government or a private company
doing work predominantly on behalf of a foreign government. Any
intelligence personnel who performs compensated work for the benefit of
a foreign entity that stands to benefit from the knowledge obtained by
the person as a result of such United States Government employment,
shall be punished as provided in section 216 of title 18, United States
Code.
TITLE III--TRANSPARENCY
SEC. 301. AFFIRMATIVE CONTRACTOR RECORD DISCLOSURES.
The Secretary of Defense shall publish on a publicly available
internet website the following information to the extent such
information is unclassified and non-confidential:
(1) In the case of a contract with the Department of
Defense for goods or services above the simplified acquisition
threshold specified in section 134 of title 41, United States
Code, copies of all contracts, subcontracts, purchase orders,
delivery orders, task orders, lease agreements, and assignments
entered into with the Department of Defense during the previous
3 fiscal years.
(2) In the case of a contract with the Department of
Defense for goods or services in excess of $10,000,000, all
records related to lack of performance, failure to meet
contract requirements, and any resulting corrective action
plans, cure notices, show cause notices, and non-conformance
reports.
(3) The contractor report required under section 4705 of
title 10, United States Code, as added by section 102 of this
Act.
SEC. 302. PUBLICATION OF CONTRACTOR EVALUATION RATINGS.
Section 2313(c) of title 41, United States Code, is amended by
adding at the end the following new paragraph:
``(9) Contractor evaluation ratings as provided for at
paragraph (b)(4) of section 1503 of part 42 of title 48, Code
of Federal Regulations, as of the date of enactment of this
paragraph.''.
SEC. 303. OWNERSHIP OF INFORMATION.
Any entity of the Department of Defense that enters into a contract
or agreement with, or provides funding to, a nongovernmental entity for
the purposes of procuring goods or services shall--
(1) for the purposes of paragraph (3), be deemed to have
control over all information of the entity related to--
(A) any costs or the expenditure of any funds
related to the contract or agreement; and
(B) any other information related to the
performance of the contract or agreement;
(2) provide access to the information described in
paragraph (1), which shall be considered an ``agency record'',
to any person upon request made pursuant to paragraph (3); and
(3) include compliance with this subsection as a material
term in any contract, agreement, or renewal of a contract or
agreement with any nongovernmental entity for the purposes of
procuring goods or services.
SEC. 304. FINANCIAL DISCLOSURE BY LARGE CONTRACTORS.
(a) Disclosure Requirement.--
(1) In general.--The Secretary of Defense shall require a
covered contractor, as a condition for entering into a contract
with the Department of Defense, to make publicly available on
an annual basis the following information (excluding
information determined to be classified by the Secretary):
(A) Audited financial statements.
(B) A listing of the salaries of employees
performing work on the contract that receive
compensation from the contractor in excess of $250,000
per year.
(C) A description of all Federal political
spending, including lobbying, by the contractor.
(2) Suspension and debarment.--The Secretary of Defense may
suspend or debar any covered contractor that fails to comply
with the disclosure requirements under paragraph (1).
(3) Covered contractor defined.--The term ``covered
contractor'' means a contractor (other than an institute of
higher education) that--
(A) received more than $10,000,000 in annual
revenue from Federal Government contracts or licenses
in any of the previous three fiscal years; or
(B) earned more than 20 percent of its total annual
revenue from Federal Government contracts or licenses
in any of the previous three fiscal years.
SEC. 305. AVAILABILITY ON THE INTERNET OF CERTAIN INFORMATION ABOUT
OFFICERS SERVING IN GENERAL OR FLAG OFFICER GRADES.
(a) Availability Required.--The Secretary of each military
department shall make available on a publicly available internet
website of such department the information specified in subsection (b)
related to each officer in a general or flag officer grade under the
jurisdiction of such Secretary, including any such officer on the
reserve active-status list.
(b) Information.--The information on an officer referred to in
subsection (a) is as follows:
(1) The officer's name.
(2) The officer's current billet.
(3) A biographical summary of the officer.
(4) Any financial disclosures made by the officer to or for
Department of Defense purposes.
(5) Any substantiated reports of an Inspector General in
the Department of Defense involving conduct of the officer.
(6) Summaries of any command climate survey conducted with
respect to a command of the officer.
(c) Redaction.--Information made available pursuant to subsection
(a) may be redacted in a manner that accords with the provisions of
section 552a of title 5, United States Code (commonly referred to as
the ``Privacy Act'').
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