[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 1503 Introduced in Senate (IS)]
<DOC>
116th CONGRESS
1st Session
S. 1503
To promote ethics and prevent corruption in Department of Defense
contracting and other activities, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
May 16, 2019
Ms. Warren introduced the following bill; which was read twice and
referred to the Committee on Armed Services
_______________________________________________________________________
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 2019''.
(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. Comptroller General report on post-government employment of
former Department of Defense officials.
Sec. 104. Ban on hiring contracting officials enforceable on certain
contracts.
Sec. 105. Ban on hiring senior officials by giant defense contractors.
Sec. 106. 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. 107. Enhancement of recusal for conflicts of personal interest
requirements for Department of Defense
officers and employees.
Sec. 108. Prohibition on ownership or trading of stocks in certain
companies by Department of Defense officers
and employees.
TITLE II--LIMITING FOREIGN INFLUENCE
Sec. 201. Annual reports on approval of employment or compensation of
retired general or flag officers by foreign
governments for Emoluments Clause purposes.
Sec. 202. Advising foreign governments.
Sec. 203. Ban on former military and civilian intelligence officers
from foreign employment.
TITLE III--TRANSPARENCY
Sec. 301. Affirmative contractor record disclosures.
Sec. 302. Extension of FOIA to private contractors.
Sec. 303. Financial disclosure by large contractors.
Sec. 304. 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) in paragraph (1)--
(i) 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 General Counsel Standards and
Conduct Office of the Department for not less
than ten years''; and
(ii) by inserting ``and shall be posted on
a publicly available Internet website of the
General Counsel Standards and Conduct Office''
after ``opinion was provided''; and
(B) in paragraph (2), by inserting ``not less than
biannually'' after ``conduct periodic reviews''.
SEC. 102. REQUIREMENTS FOR DEFENSE CONTRACTORS RELATING TO CERTAIN
FORMER DEPARTMENT OF DEFENSE OFFICIALS AND LOBBYING
ACTIVITIES.
(a) Requirements.--
(1) In general.--Chapter 141 of title 10, United States
Code is amended by adding at the end the following new section:
``Sec. 2410t. 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 commercial products or 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).
``(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, 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
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; and
``(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 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) Duplicate Information Not Required.--An annual report
submitted by a contractor pursuant to subsection (b) need not provide
information with respect to any former officer or employee of the
Department of Defense or former or retired member of the armed forces
if such information has already been provided in a previous annual
report filed by such contractor under this section.
``(d) 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. 1603).''.
(2) Clerical amendment.--The table of sections at the
beginning of chapter 141 of such title is amended by adding at
the end the following new item:
``Sec. 2410t. Defense contractors report: requirements concerning
former Department of Defense officials and
lobbying activities.''.
(b) Effective Date.--The amendments made by subsection (a) shall
take effect on the date of the enactment of this Act, and shall apply
with respect to contracts entered into on or after that date.
SEC. 103. COMPTROLLER GENERAL REPORT ON POST-GOVERNMENT EMPLOYMENT OF
FORMER DEPARTMENT OF DEFENSE OFFICIALS.
Not later than 90 days after the date of the enactment of this Act,
the Comptroller General of the United States shall initiate a review
updating the information and findings contained in the May 2008
Government Accountability Office report entitled, ``Defense
Contracting: Post-Government Employment of Former DOD Officials Needs
Greater Transparency'' (GAO-08-485). The Comptroller General shall
provide an interim briefing on the status of the review to the
congressional defense committees not later than December 31, 2020, with
a report to follow by a date agreed upon with the committees.
SEC. 104. 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 in 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 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.
SEC. 105. 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 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 an official or
former official of the Department of Defense described in subsection
(a)(2)(A), 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.
SEC. 106. 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), 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. 107. ENHANCEMENT OF RECUSAL FOR CONFLICTS OF PERSONAL INTEREST
REQUIREMENTS FOR DEPARTMENT OF DEFENSE OFFICERS AND
EMPLOYEES.
(a) In General.--An officer or employee of the Department of
Defense may not participate personally and substantially in any covered
matter that the officer or employee knows, or reasonably should know,
is likely to have a direct and predictable effect on the financial
interests of any of the following:
(1) Any organization, including a trade organization, for
which the officer or employee has served as an employee,
officer, director, trustee, or general partner in the past 4
years.
(2) 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.
(3) Any employer with whom the officer or employee is
seeking employment.
(b) Construction.--Nothing in this section shall be construed to
terminate, alter, or make inapplicable any other prohibition or
limitation in law or regulation on the participation of officers or
employees of the Department of Defense in covered matters having an
effect on their or related financial or other personal interests.
(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 policymaking that is narrowly focused on the
interests of a discrete and identifiable class of persons.
SEC. 108. PROHIBITION ON OWNERSHIP OR TRADING OF STOCKS IN CERTAIN
COMPANIES BY DEPARTMENT OF DEFENSE OFFICERS AND
EMPLOYEES.
(a) Prohibition on Ownership and Trading by Certain Senior
Officials.--
(1) Prohibition.--An official of the Department of Defense
described in paragraph (2) may not own or trade a publicly
traded stock of a company if, during the preceding calendar
year, the company received more than $1,000,000,000 in revenue
from the Department of Defense, including through one or more
contracts with the Department.
(2) Department of defense officials.--An official of the
Department of Defense described in this paragraph is any
current Department of Defense official described by section
847(c) of the National Defense Authorization Act for Fiscal
Year 2008 (10 U.S.C. 1701 note).
(3) Nature of offense.--Ownership or a trade of a stock in
violation of paragraph (1) is an offense under section 208 of
title 18, United States Code.
(b) Prohibition on Ownership and Trading by All Officers and
Employees.--An officer or employee of the Department of Defense may not
own or trade a publicly traded stock of a company that is a contractor
or subcontractor of the Department if the Office of Standards and
Compliance of the Office of the General Counsel of the Department of
Defense determines that the value of the stock may be directly or
indirectly influenced by any official action of the officer or employee
for the Department.
(c) Inapplicability to Mutual Funds.--For purposes of this section,
publicly traded stock does not include a widely held investment fund
described in section 102(f)(8) of the Ethics in Government Act of 1978
(5 U.S.C. App.).
TITLE II--LIMITING FOREIGN INFLUENCE
SEC. 201. ANNUAL REPORTS ON APPROVAL OF EMPLOYMENT OR COMPENSATION OF
RETIRED GENERAL OR FLAG OFFICERS BY FOREIGN GOVERNMENTS
FOR EMOLUMENTS CLAUSE PURPOSES.
(a) Annual Reports.--Section 908 of title 37, United States Code,
is amended--
(1) by redesignating subsection (c) as subsection (d); and
(2) by inserting after subsection (b) the following new
subsection (c):
``(c) Annual Reports on Approvals for Retired General and Flag
Officers.--(1) Not later than January 31 each year, the Secretaries of
the military departments shall jointly submit to the appropriate
committees and Members of Congress a report on each approval under
subsection (b) for employment or compensation described in subsection
(a) for a retired member of the armed forces in a general or flag
officer grade that was issued during the preceding year.
``(2) In this subsection, the appropriate committees and Members of
Congress are--
``(A) the Committee on Armed Services, the Committee on
Foreign Relations, and the Committee on Appropriations of the
Senate;
``(B) the Committee on Armed Services, the Committee on
Foreign Affairs, and the Committee on Appropriations of the
House of Representatives;
``(C) the Majority Leader and the Minority Leader of the
Senate; and
``(D) the Speaker of the House of Representatives and the
Minority Leader of the House of Representatives.''.
(b) Scope of First Report.--The first report submitted pursuant to
subsection (c) of section 908 of title 37, United States Code (as
amended by subsection (a) of this section), after the date of the
enactment of this Act shall cover the five-year period ending with the
year before the year in which such report is submitted.
SEC. 202. 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 without prior approval.--
``(A) In general.--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, without the explicit prior
approval of the Secretary of State, performs
compensated work for a foreign entity that might
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.
``(B) Limitation on approval.--The Secretary of
State may not approve any work described in
subparagraph (A) that conflicts with the national
security interests of the United States, as determined
by the Secretary and verified by the Director of
National Intelligence.
``(C) Annual report.--The Secretary of State shall
submit an annual report listing all of the approvals
under subparagraph (A) during the prior calendar year
to the Committee on Foreign Relations of the Senate,
the Committee on Armed Services of the Senate, the
Select Committee on Intelligence of the Senate, the
Committee on Foreign Affairs of the House of
Representatives, the Committee on Armed Services of the
House of Representatives, and the Permanent Select
Committee on Intelligence of the House of
Representatives.''.
SEC. 203. BAN ON FORMER MILITARY AND CIVILIAN INTELLIGENCE OFFICERS
FROM FOREIGN EMPLOYMENT.
(a) In General.--Except as provided in subsection (b), military and
intelligence officers 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.
(b) Exemption.--
(1) In general.--Employment with the Government of
Australia, of Canada, of New Zealand, or of the United Kingdom
is not subject to the prohibition under subsection (a).
(2) Waivers.--Individuals may seek and be granted a waiver
by the Secretary of State for employment by any other foreign
government. Such waiver will be presumptively granted in cases
that ex-officers seek employment in jobs focused on
humanitarian aid, development, or infrastructure improvement.
Waivers for employment in other jobs shall be determined based
on whether such employment would reasonably involve the use or
disclosure or appropriation of sources, methods, or skills that
could pose a threat to United States interests when employed by
other countries or enable the repression of the nationals of
such countries.
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--
(A) copies of each contract and task delivery order
the contractor on such contract has entered into with
the Department of Defense during the previous three
fiscal years; and
(B) past performance information about the
contractor to the extent it is maintained by the
Department.
(2) In the case of a contract with the Department of
Defense for goods or services in excess of $10,000,000, all
correspondence and documents related to the contract.
(3) The contractor report required under section 2410t of
title 10, United States Code, as added by section 102 of this
Act.
SEC. 302. EXTENSION OF FOIA TO PRIVATE CONTRACTORS.
(a) Definitions.--In this section--
(1) the term ``covered contractor'' means a private
contractor that entered into a contract with the Department;
(2) the term ``covered record'' means any record produced
using Federal funds during the fulfillment of a Department
contract by a covered contractor; and
(3) the term ``Department'' means the Department of
Defense.
(b) Application of FOIA.--A covered record shall be--
(1) considered an agency record for purposes of section
552(f)(2) of title 5, United States Code, whether in the
possession of a covered contractor or the Department; and
(2) subject to section 552 of title 5, United States Code
(commonly known as the ``Freedom of Information Act''), to the
same extent as if the record was maintained by the Department.
(c) Inclusion of FOIA Provisions.--In any contract entered into by
a covered contractor with the Department, the Department shall include
provisions relating to the application of section 552 of title 5,
United States Code (commonly known as the ``Freedom of Information
Act'') to any covered records produced during the fulfillment of the
contract.
SEC. 303. 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 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
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. 304. 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 an Internet website of such
department available to the public information specified in subsection
(b) on 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 specified by this
subsection to be made available pursuant to subsection (a) is the
information 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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