[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 4930 Reported in Senate (RS)]
<DOC>
Calendar No. 665
117th CONGRESS
2d Session
S. 4930
[Report No. 117-266]
To prohibit Federal procurement from companies operating in the Russian
Federation, and for other purposes.
_______________________________________________________________________
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.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
<DELETED>SECTION 1. SHORT TITLE.</DELETED>
<DELETED> This Act may be cited as the ``Federal Contracting for
Peace and Security Act''.</DELETED>
<DELETED>SEC. 2. FEDERAL CONTRACTING FOR PEACE AND SECURITY.</DELETED>
<DELETED> (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.</DELETED>
<DELETED> (b) Contracting Prohibition.--</DELETED>
<DELETED> (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.</DELETED>
<DELETED> (2) Exceptions.--</DELETED>
<DELETED> (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--</DELETED>
<DELETED> (i) pursued and continues to
pursue all reasonable steps in demonstrating a
good faith effort to comply with the
requirements of this Act; and</DELETED>
<DELETED> (ii) provided to the executive
agency a reasonable, written plan to achieve
compliance with such requirements.</DELETED>
<DELETED> (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.</DELETED>
<DELETED> (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.</DELETED>
<DELETED> (D) Individual contracts.--The prohibition
under paragraph (1) shall not apply to any contract
that is any of the following:</DELETED>
<DELETED> (i) For the benefit, either
directly or through the efforts of regional
allies, of the country of Ukraine.</DELETED>
<DELETED> (ii) For humanitarian purposes to
meet basic human needs.</DELETED>
<DELETED> (3) National security and public interest
waivers.--</DELETED>
<DELETED> (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.</DELETED>
<DELETED> (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.</DELETED>
<DELETED> (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:</DELETED>
<DELETED> (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).</DELETED>
<DELETED> (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).</DELETED>
<DELETED> (C) A description of the process for
determining a good faith exemption described under
paragraph (2).</DELETED>
<DELETED> (5) Definitions.--In this section:</DELETED>
<DELETED> (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.</DELETED>
<DELETED> (B) Business operations.--</DELETED>
<DELETED> (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.</DELETED>
<DELETED> (ii) Exceptions.--The term
``business operations'' does not include any of
the following:</DELETED>
<DELETED> (I) Action taken for the
benefit of the country of
Ukraine.</DELETED>
<DELETED> (II) Action serving
humanitarian purposes to meet basic
human needs, including through a
hospital, school, or non-profit
organization.</DELETED>
<DELETED> (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.</DELETED>
<DELETED> (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.</DELETED>
<DELETED> (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--</DELETED>
<DELETED> (I) an action to secure or
divest from facilities, property, or
equipment;</DELETED>
<DELETED> (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</DELETED>
<DELETED> (III) activities that are
incident to liquidating, dissolving, or
winding down a subsidiary or legal
entity in Russia through which
operations had been
conducted.</DELETED>
<DELETED> (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.</DELETED>
<DELETED> (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.</DELETED>
<DELETED> (E) Executive agency.--The term
``executive agency'' has the meaning given the term in
section 133 of title 41, United States Code.</DELETED>
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Federal Contracting for Peace and
Security Act''.
SEC. 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.
Calendar No. 665
117th CONGRESS
2d Session
S. 4930
[Report No. 117-266]
_______________________________________________________________________
A BILL
To prohibit Federal procurement from companies operating in the Russian
Federation, and for other purposes.
_______________________________________________________________________
December 15, 2022
Reported with an amendment