Us Congress 2025-2026 Regular Session

Us Congress Senate Bill SB731 Compare Versions

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11 II
22 119THCONGRESS
33 1
44 STSESSION S. 731
55 To prohibit conflicts of interest among consulting firms that simultaneously
66 contract with China or other covered foreign entities and the United
77 States Government, and for other purposes.
88 IN THE SENATE OF THE UNITED STATES
99 FEBRUARY25, 2025
1010 Mr. H
1111 AWLEY(for himself, Mr. PETERS, and Mr. SCOTTof Florida) introduced
1212 the following bill; which was read twice and referred to the Committee
1313 on Homeland Security and Governmental Affairs
1414 A BILL
1515 To prohibit conflicts of interest among consulting firms that
1616 simultaneously contract with China or other covered for-
1717 eign entities and the United States Government, and
1818 for other purposes.
1919 Be it enacted by the Senate and House of Representa-1
2020 tives of the United States of America in Congress assembled, 2
2121 SECTION 1. SHORT TITLE. 3
2222 This Act may be cited as the ‘‘Time to Choose Act 4
2323 of 2025’’. 5
2424 SEC. 2. FINDINGS. 6
2525 Congress makes the following findings: 7
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2929 (1) The Department of Defense and other agen-1
3030 cies in the United States Government regularly 2
3131 award contracts to firms that are simultaneously 3
3232 providing consulting services to foreign governments 4
3333 and proxies or affiliates thereof. 5
3434 (2) The provision of such consulting services to 6
3535 covered foreign entities may support efforts by cer-7
3636 tain foreign governments to generate economic and 8
3737 military power that they can then use to undermine 9
3838 the economic and national security of the American 10
3939 people. 11
4040 (3) It is a conflict of interest for consulting 12
4141 firms to simultaneously aid in the efforts of certain 13
4242 foreign governments to undermine the economic and 14
4343 national security of the United States while they are 15
4444 simultaneously contracting with Federal agencies re-16
4545 sponsible for protecting and defending the United 17
4646 States from foreign threats. 18
4747 (4) Firms should be prevented from engaging in 19
4848 such a conflict of interest and should instead be re-20
4949 quired to choose between aiding the efforts of cer-21
5050 tain foreign governments or helping the United 22
5151 States Government to support and defend its citi-23
5252 zens. 24
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5656 SEC. 3. PROHIBITION ON FEDERAL CONTRACTING WITH 1
5757 ENTITIES THAT ARE SIMULTANEOUSLY AID-2
5858 ING IN THE EFFORTS OF COVERED FOREIGN 3
5959 ENTITIES. 4
6060 (a) I
6161 NGENERAL.—In order to end conflicts of inter-5
6262 est in Federal contracting among consulting firms that si-6
6363 multaneously contract with the United States Government 7
6464 and covered foreign entities, the Federal Acquisition Reg-8
6565 ulatory Council shall, not later than 1 year after the date 9
6666 of the enactment of this Act, amend the Federal Acquisi-10
6767 tion Regulation— 11
6868 (1) to require any entity that makes an offer or 12
6969 quotation to provide consulting services to an execu-13
7070 tive agency, including services described in the 14
7171 North American Industry Classification System’s In-15
7272 dustry Group code 5416, prior to entering into a 16
7373 Federal contract, to certify that neither it nor any 17
7474 of its subsidiaries or affiliates hold a consulting con-18
7575 tract with one or more covered foreign entities; and 19
7676 (2) to prohibit Federal contracts for consulting 20
7777 services from being awarded to an entity that pro-21
7878 vides consulting services, including services described 22
7979 under the North American Industry Classification 23
8080 System’s Industry Group code 5416 if the entity or 24
8181 any of its subsidiaries or affiliates are determined, 25
8282 based on the self-certification required under para-26
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8686 graph (1), to be a contractor of, or are otherwise 1
8787 providing consulting services to, a covered foreign 2
8888 entity. 3
8989 (b) W
9090 AIVER.— 4
9191 (1) I
9292 N GENERAL.—Subject to the limitations in 5
9393 paragraph (2), the head of an executive agency may 6
9494 waive the conflict of interest restrictions under this 7
9595 section on a case-by-case basis if— 8
9696 (A) the agency head, in consultation with 9
9797 the Secretary of Defense and the Director of 10
9898 National Intelligence, determines the waiver to 11
9999 be in the national security interests of the 12
100100 United States; 13
101101 (B) the agency head determines that no 14
102102 other entity without a conflict of interest under 15
103103 this section can perform the work for the Fed-16
104104 eral contract; 17
105105 (C) the head of the executive agency sub-18
106106 mits to the Director of the Office of Manage-19
107107 ment and Budget a notification of such waiver 20
108108 at least 5 days prior to issuing the waiver; 21
109109 (D) the head of the executive agency sub-22
110110 mits to the appropriate congressional commit-23
111111 tees a notification of such waiver within 30 24
112112 days in unclassified form (accompanied by a 25
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116116 classified annex if necessary) and offers a brief-1
117117 ing to those committees on the information in-2
118118 cluded in the notification; and 3
119119 (E) the contracting agency publishes in an 4
120120 easily accessible location on the agency’s public 5
121121 website a list of the names of the covered for-6
122122 eign entities to which the entity receiving a 7
123123 waiver provides consulting services, unless the 8
124124 head of the applicable executive agency, with 9
125125 the approval of the Director of the Office of 10
126126 Management and Budget, and in consultation 11
127127 with the Secretary of Defense and Director of 12
128128 National Intelligence, determines that such pub-13
129129 lic disclosure would directly harm the national 14
130130 security interests of the United States. 15
131131 (2) L
132132 IMITATIONS.— 16
133133 (A) D
134134 URATION.—A waiver granted under 17
135135 paragraph (1) shall last for a period of not 18
136136 more than 365 days. The head of the applicable 19
137137 executive agency, with the approval of the Di-20
138138 rector of the Office of Management and Budg-21
139139 et, and in consultation with the Secretary of 22
140140 Defense and Director of National Intelligence, 23
141141 may extend a waiver granted under such para-24
142142 graph one time, for a period up to 180 days 25
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146146 after the date on which the waiver would other-1
147147 wise expire, if such an extension is in the na-2
148148 tional security interests of the United States 3
149149 and the Director of the Office of Management 4
150150 and Budget submits to the appropriate congres-5
151151 sional committees a notification of such waiver 6
152152 and offers a briefing to those committees on the 7
153153 information included in the notification. 8
154154 (B) N
155155 UMBER.—Not more than one total 9
156156 waiver across all executive agencies may be 10
157157 granted under paragraph (1) to a single entity 11
158158 at a given time. 12
159159 (C) N
160160 OTIFICATION REQUIREMENTS .—The 13
161161 notification required under subparagraphs (C) 14
162162 and (D) of paragraph (1) shall include the fol-15
163163 lowing information: 16
164164 (i) Information on the contractor, in-17
165165 cluding— 18
166166 (I) the name, address, and cor-19
167167 porate structure of the contractor; 20
168168 (II) the name, address, and cor-21
169169 porate structure of any subsidiaries or 22
170170 subcontractors involved; 23
171171 (III) all foreign ownership of the 24
172172 contractor; 25
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176176 (IV) all foreign real estate owned 1
177177 by the contractor; and 2
178178 (V) an employee designated as 3
179179 responsible for managing any conflict 4
180180 of interests that may arise as part of 5
181181 the contract. 6
182182 (ii) Information on the covered foreign 7
183183 entities involved to the extent known by 8
184184 the contractor, including— 9
185185 (I) the name and address of the 10
186186 covered foreign entity; 11
187187 (II) the name and address of any 12
188188 subsidiaries or subcontractors in-13
189189 volved; 14
190190 (III) a complete history of any 15
191191 contracts between the covered foreign 16
192192 entity and the contractor; 17
193193 (IV) all ownership of the covered 18
194194 foreign entity; and 19
195195 (V) any legal authorities pro-20
196196 viding a foreign government with ac-21
197197 cess or control over the covered for-22
198198 eign entity. 23
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202202 (iii) Information on the nature of the 1
203203 work performed for the covered foreign en-2
204204 tities, including— 3
205205 (I) the projected and actual dol-4
206206 lar value of the contract; 5
207207 (II) the projected and actual du-6
208208 ration of the contract; 7
209209 (III) the projected and actual 8
210210 number of employees to work on the 9
211211 contract; 10
212212 (IV) the projected and actual 11
213213 number of employees who are United 12
214214 States citizens who work on the con-13
215215 tract; 14
216216 (V) the projected and actual 15
217217 number of employees who currently or 16
218218 formerly held security clearances with 17
219219 the United States Government who 18
220220 work on the contract; 19
221221 (VI) the subject matter of the 20
222222 contract; 21
223223 (VII) any materials provided to 22
224224 the covered foreign entity in order to 23
225225 secure the contract; 24
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229229 (VIII) any tracking number used 1
230230 by the covered foreign entity to iden-2
231231 tify the contract; 3
232232 (IX) any tracking number or in-4
233233 formation used by the contractor to 5
234234 identify the contract; and 6
235235 (X) any military or intelligence 7
236236 applications that could benefit from 8
237237 the contract. 9
238238 (iv) Justification of the executive 10
239239 agency’s need for providing the waiver. 11
240240 (v) An acceptable management over-12
241241 sight plan to ensure that the work per-13
242242 formed for the covered foreign entities does 14
243243 not compromise the work being performed 15
244244 for the Federal Government or harm the 16
245245 national security of the United States, to 17
246246 be approved at not lower than the Deputy 18
247247 Secretary level at the contracting agency. 19
248248 (3) C
249249 ONTRACTOR REPORTING .—The executive 20
250250 agency granting a waiver under this subsection shall 21
251251 require the contractor, in the event the contractor 22
252252 identifies any of the following during the perform-23
253253 ance of the contract, to report the following informa-24
254254 tion to the executive agency: 25
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258258 (A) Any human rights violations that are 1
259259 known to the contractor through information 2
260260 provided to the contractor in the course of the 3
261261 contract. 4
262262 (B) Any religious liberty violations that are 5
263263 known to the contractor through information 6
264264 provided to the contractor in the course of the 7
265265 contract. 8
266266 (C) Any risks to United States economic or 9
267267 national security identified by the contractor in 10
268268 the course of the contract. 11
269269 SEC. 4. PENALTIES FOR FALSE INFORMATION. 12
270270 (a) T
271271 ERMINATION, SUSPENSION, ANDDEBAR-13
272272 MENT.—If the head of an executive agency determines 14
273273 that a consulting firm described in section 3(a)(1) has 15
274274 knowingly submitted a false certification or information 16
275275 on or after the date on which the Federal Acquisition Reg-17
276276 ulatory Council amends the Federal Acquisition Regula-18
277277 tion pursuant to such section, the head of the executive 19
278278 agency shall terminate the contract with the consulting 20
279279 firm and consider suspending or debarring the firm from 21
280280 eligibility for future Federal contracts in accordance with 22
281281 subpart 9.4 of the Federal Acquisition Regulation. 23
282282 (b) F
283283 ALSECLAIMSACT.—A consulting firm de-24
284284 scribed in section 3(a)(1) that, for the purposes of the 25
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288288 False Claims Act, knowingly hides or misrepresents one 1
289289 or more contracts with covered foreign entities, or other-2
290290 wise violates the False Claims Act, shall be subject to the 3
291291 penalties and corrective actions described in the False 4
292292 Claims Act, including liability for three times the amount 5
293293 of damages which the United States Government sustains. 6
294294 SEC. 5. DEFINITIONS. 7
295295 In this Act: 8
296296 (1) A
297297 PPROPRIATE CONGRESSIONAL COMMIT -9
298298 TEES.—The term ‘‘appropriate congressional com-10
299299 mittees’’ means the Committee on Homeland Secu-11
300300 rity and Governmental Affairs of the Senate and the 12
301301 Committee on Oversight and Government Reform of 13
302302 the House of Representatives. 14
303303 (2) C
304304 ONSULTING SERVICES .—The term ‘‘con-15
305305 sulting services’’ means advisory or assistance serv-16
306306 ices similar to those defined in Federal Acquisition 17
307307 Regulation 2.101, but for the purposes of this Act 18
308308 includes services provided to covered foreign entities, 19
309309 except that the term does not include the provision 20
310310 of products or services related to— 21
311311 (A) compliance with legal, audit, account-22
312312 ing, tax, reporting, or other requirements of the 23
313313 laws and standards of countries; or 24
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317317 (B) participation in a judicial, legal, or eq-1
318318 uitable dispute resolution proceeding. 2
319319 (3) C
320320 OVERED FOREIGN ENTITY .—The term 3
321321 ‘‘covered foreign entity’’ means any of the following: 4
322322 (A) The Government of the People’s Re-5
323323 public of China, the Chinese Communist Party, 6
324324 the People’s Liberation Army, the Ministry of 7
325325 State Security, or other security service or in-8
326326 telligence agency of the People’s Republic of 9
327327 China. 10
328328 (B) The Government of the Russian Fed-11
329329 eration or any entity sanctioned by the Sec-12
330330 retary of the Treasury under Executive Order 13
331331 13662 titled ‘‘Blocking Property of Additional 14
332332 Persons Contributing to the Situation in 15
333333 Ukraine’’ (79 Fed. Reg. 16169). 16
334334 (C) The government of any country if the 17
335335 Secretary of State determines that such govern-18
336336 ment has repeatedly provided support for acts 19
337337 of international terrorism pursuant to any of 20
338338 the following: 21
339339 (i) Section 1754(c)(1)(A) of the Ex-22
340340 port Control Reform Act of 2018 (50 23
341341 U.S.C. 4318(c)(1)(A)). 24
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345345 (ii) Section 620A of the Foreign As-1
346346 sistance Act of 1961 (22 U.S.C. 2371). 2
347347 (iii) Section 40 of the Arms Export 3
348348 Control Act (22 U.S.C. 2780). 4
349349 (iv) Any other provision of law. 5
350350 (D) Any entity included on any of the fol-6
351351 lowing lists maintained by the Department of 7
352352 Commerce: 8
353353 (i) The Entity List set forth in Sup-9
354354 plement No. 4 to part 744 of the Export 10
355355 Administration Regulations. 11
356356 (ii) The Denied Persons List as de-12
357357 scribed in section 764.3(a)(2) of the Ex-13
358358 port Administration Regulations. 14
359359 (iii) The Unverified List set forth in 15
360360 Supplement No. 6 to part 744 of the Ex-16
361361 port Administration Regulations. 17
362362 (iv) The Military End User List set 18
363363 forth in Supplement No. 7 to part 744 of 19
364364 the Export Administration Regulations. 20
365365 (E) Any entity identified by the Secretary 21
366366 of Defense pursuant to section 1237(b) of the 22
367367 Strom Thurmond National Defense Authoriza-23
368368 tion Act for Fiscal Year 1999 (Public Law 24
369369 105–261; 50 U.S.C. 1701 note). 25
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373373 (F) Any entity on the Non-SDN Chinese 1
374374 Military-Industrial Complex Companies List 2
375375 (NS–CMIC List) maintained by the Office of 3
376376 Foreign Assets Control of the Department of 4
377377 the Treasury under Executive Order 14032 (86 5
378378 Fed. Reg. 30145; relating to addressing the 6
379379 threat from securities investments that finance 7
380380 certain companies of the People’s Republic of 8
381381 China), or any successor order. 9
382382 (4) E
383383 XECUTIVE AGENCY.—The term ‘‘executive 10
384384 agency’’ has the meaning given the term in section 11
385385 133 of title 41, United States Code. 12
386386 (5) F
387387 ALSE CLAIMS ACT .—The term ‘‘False 13
388388 Claims Act’’ means sections 3729 through 3733 of 14
389389 title 31, United States Code. 15
390390 (6) N
391391 ORTH AMERICAN INDUSTRY CLASSIFICA -16
392392 TION SYSTEM’S INDUSTRY GROUP CODE 5416 .—The 17
393393 term ‘‘North American Industry Classification Sys-18
394394 tem’s Industry Group code 5416’’ refers to the 19
395395 North American Industry Classification System cat-20
396396 egory that covers Management, Scientific, and Tech-21
397397 nical Consulting Services as Industry Group code 22
398398 5416, including industry codes 54151, 541611, 23
399399 541612, 541613, 541614, 541618, 54162, 541620, 24
400400 54169, and 541690. 25
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404404 SEC. 6. NO ADDITIONAL FUNDING. 1
405405 No additional funds are authorized to be appro-2
406406 priated for the purpose of carrying out this Act. 3
407407 Æ
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