[Page S1887]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 4174. Mr. GRASSLEY (for himself and Mrs. McCaskill) submitted an 
amendment intended to be proposed by him to the concurrent resolution 
S. Con. Res. 70, setting forth the congressional budget for the United 
States Government for fiscal year 2009 and including the appropriate 
budgetary levels for fiscal years 2008 and 2010 through 2013; which was 
ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. SENSE OF THE SENATE REGARDING OVERSEAS CONTRACTING 
                   INTEGRITY REQUIREMENTS.

       (a) Findings.--The Senate makes the following findings:
       (1) Overseas contracts pose a significant potential for 
     fraud and abuse.
       (2) Fraud against the Federal Government, whether it occurs 
     domestically or abroad, should be detected and prosecuted to 
     the fullest extent of the law.
       (3) On May 23, 2007, the Department of Justice requested 
     amendments to the Federal Acquisition Regulation (referred to 
     in this section as ``FAR'') that would require Federal 
     Government contractors to--
       (A) have a code of ethics and business conduct;
       (B) establish and maintain specific internal controls to 
     detect and prevent improper conduct in connection with the 
     award or performance of Federal Government contracts or 
     subcontracts; and
       (C) notify contracting officers without delay whenever the 
     contractor had become aware of violations of Federal criminal 
     law with regards to such contracts or subcontracts.
       (4) The Department of Defense, the General Services 
     Administration, and the National Aeronautics and Space 
     Administration issued a Federal Acquisition Regulation 
     entitled, ``Contractor Compliance Program and Integrity 
     Reporting'' (FAR Case 2007-006), on November 14, 2007.
       (5) The rule proposed in the regulation issued on November 
     14, 2007, included a loophole that would exempt from such 
     regulation any contract or subcontract to be performed 
     entirely outside the United States.
       (6) The Department of Justice objected to the inclusion of 
     such new loophole in a letter to the General Services 
     Administration dated January 14, 2008.
       (7) The proposed rule is currently under review by the 
     Office of Management and Budget and continues to include such 
     new loophole for overseas contracts.
       (b) Sense of the Senate.--It is the sense of the Senate 
     that--
       (1) Federal Government contracts to be performed outside 
     the United States should be subject to ethics, control, and 
     reporting requirements that are the same, or at least as 
     rigorous as those for contracts to be performed domestically; 
     and
       (2) any final rulemaking related to FAR Case 2007-006 
     should not exempt overseas contracts.
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