1 | 1 | | II |
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2 | 2 | | 119THCONGRESS |
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3 | 3 | | 1 |
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4 | 4 | | STSESSION S. 731 |
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5 | 5 | | To prohibit conflicts of interest among consulting firms that simultaneously |
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6 | 6 | | contract with China or other covered foreign entities and the United |
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7 | 7 | | States Government, and for other purposes. |
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8 | 8 | | IN THE SENATE OF THE UNITED STATES |
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9 | 9 | | FEBRUARY25, 2025 |
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10 | 10 | | Mr. H |
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11 | 11 | | AWLEY(for himself, Mr. PETERS, and Mr. SCOTTof Florida) introduced |
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12 | 12 | | the following bill; which was read twice and referred to the Committee |
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13 | 13 | | on Homeland Security and Governmental Affairs |
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14 | 14 | | A BILL |
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15 | 15 | | To prohibit conflicts of interest among consulting firms that |
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16 | 16 | | simultaneously contract with China or other covered for- |
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17 | 17 | | eign entities and the United States Government, and |
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18 | 18 | | for other purposes. |
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19 | 19 | | Be it enacted by the Senate and House of Representa-1 |
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20 | 20 | | tives of the United States of America in Congress assembled, 2 |
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21 | 21 | | SECTION 1. SHORT TITLE. 3 |
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22 | 22 | | This Act may be cited as the ‘‘Time to Choose Act 4 |
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23 | 23 | | of 2025’’. 5 |
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24 | 24 | | SEC. 2. FINDINGS. 6 |
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25 | 25 | | Congress makes the following findings: 7 |
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28 | 28 | | •S 731 IS |
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29 | 29 | | (1) The Department of Defense and other agen-1 |
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30 | 30 | | cies in the United States Government regularly 2 |
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31 | 31 | | award contracts to firms that are simultaneously 3 |
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32 | 32 | | providing consulting services to foreign governments 4 |
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33 | 33 | | and proxies or affiliates thereof. 5 |
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34 | 34 | | (2) The provision of such consulting services to 6 |
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35 | 35 | | covered foreign entities may support efforts by cer-7 |
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36 | 36 | | tain foreign governments to generate economic and 8 |
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37 | 37 | | military power that they can then use to undermine 9 |
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38 | 38 | | the economic and national security of the American 10 |
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39 | 39 | | people. 11 |
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40 | 40 | | (3) It is a conflict of interest for consulting 12 |
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41 | 41 | | firms to simultaneously aid in the efforts of certain 13 |
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42 | 42 | | foreign governments to undermine the economic and 14 |
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43 | 43 | | national security of the United States while they are 15 |
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44 | 44 | | simultaneously contracting with Federal agencies re-16 |
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45 | 45 | | sponsible for protecting and defending the United 17 |
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46 | 46 | | States from foreign threats. 18 |
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47 | 47 | | (4) Firms should be prevented from engaging in 19 |
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48 | 48 | | such a conflict of interest and should instead be re-20 |
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49 | 49 | | quired to choose between aiding the efforts of cer-21 |
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50 | 50 | | tain foreign governments or helping the United 22 |
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51 | 51 | | States Government to support and defend its citi-23 |
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52 | 52 | | zens. 24 |
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55 | 55 | | •S 731 IS |
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56 | 56 | | SEC. 3. PROHIBITION ON FEDERAL CONTRACTING WITH 1 |
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57 | 57 | | ENTITIES THAT ARE SIMULTANEOUSLY AID-2 |
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58 | 58 | | ING IN THE EFFORTS OF COVERED FOREIGN 3 |
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59 | 59 | | ENTITIES. 4 |
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60 | 60 | | (a) I |
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61 | 61 | | NGENERAL.—In order to end conflicts of inter-5 |
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62 | 62 | | est in Federal contracting among consulting firms that si-6 |
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63 | 63 | | multaneously contract with the United States Government 7 |
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64 | 64 | | and covered foreign entities, the Federal Acquisition Reg-8 |
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65 | 65 | | ulatory Council shall, not later than 1 year after the date 9 |
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66 | 66 | | of the enactment of this Act, amend the Federal Acquisi-10 |
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67 | 67 | | tion Regulation— 11 |
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68 | 68 | | (1) to require any entity that makes an offer or 12 |
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69 | 69 | | quotation to provide consulting services to an execu-13 |
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70 | 70 | | tive agency, including services described in the 14 |
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71 | 71 | | North American Industry Classification System’s In-15 |
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72 | 72 | | dustry Group code 5416, prior to entering into a 16 |
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73 | 73 | | Federal contract, to certify that neither it nor any 17 |
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74 | 74 | | of its subsidiaries or affiliates hold a consulting con-18 |
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75 | 75 | | tract with one or more covered foreign entities; and 19 |
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76 | 76 | | (2) to prohibit Federal contracts for consulting 20 |
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77 | 77 | | services from being awarded to an entity that pro-21 |
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78 | 78 | | vides consulting services, including services described 22 |
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79 | 79 | | under the North American Industry Classification 23 |
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80 | 80 | | System’s Industry Group code 5416 if the entity or 24 |
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81 | 81 | | any of its subsidiaries or affiliates are determined, 25 |
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82 | 82 | | based on the self-certification required under para-26 |
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85 | 85 | | •S 731 IS |
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86 | 86 | | graph (1), to be a contractor of, or are otherwise 1 |
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87 | 87 | | providing consulting services to, a covered foreign 2 |
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88 | 88 | | entity. 3 |
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89 | 89 | | (b) W |
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90 | 90 | | AIVER.— 4 |
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91 | 91 | | (1) I |
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92 | 92 | | N GENERAL.—Subject to the limitations in 5 |
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93 | 93 | | paragraph (2), the head of an executive agency may 6 |
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94 | 94 | | waive the conflict of interest restrictions under this 7 |
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95 | 95 | | section on a case-by-case basis if— 8 |
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96 | 96 | | (A) the agency head, in consultation with 9 |
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97 | 97 | | the Secretary of Defense and the Director of 10 |
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98 | 98 | | National Intelligence, determines the waiver to 11 |
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99 | 99 | | be in the national security interests of the 12 |
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100 | 100 | | United States; 13 |
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101 | 101 | | (B) the agency head determines that no 14 |
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102 | 102 | | other entity without a conflict of interest under 15 |
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103 | 103 | | this section can perform the work for the Fed-16 |
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104 | 104 | | eral contract; 17 |
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105 | 105 | | (C) the head of the executive agency sub-18 |
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106 | 106 | | mits to the Director of the Office of Manage-19 |
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107 | 107 | | ment and Budget a notification of such waiver 20 |
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108 | 108 | | at least 5 days prior to issuing the waiver; 21 |
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109 | 109 | | (D) the head of the executive agency sub-22 |
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110 | 110 | | mits to the appropriate congressional commit-23 |
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111 | 111 | | tees a notification of such waiver within 30 24 |
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112 | 112 | | days in unclassified form (accompanied by a 25 |
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115 | 115 | | •S 731 IS |
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116 | 116 | | classified annex if necessary) and offers a brief-1 |
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117 | 117 | | ing to those committees on the information in-2 |
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118 | 118 | | cluded in the notification; and 3 |
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119 | 119 | | (E) the contracting agency publishes in an 4 |
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120 | 120 | | easily accessible location on the agency’s public 5 |
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121 | 121 | | website a list of the names of the covered for-6 |
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122 | 122 | | eign entities to which the entity receiving a 7 |
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123 | 123 | | waiver provides consulting services, unless the 8 |
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124 | 124 | | head of the applicable executive agency, with 9 |
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125 | 125 | | the approval of the Director of the Office of 10 |
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126 | 126 | | Management and Budget, and in consultation 11 |
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127 | 127 | | with the Secretary of Defense and Director of 12 |
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128 | 128 | | National Intelligence, determines that such pub-13 |
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129 | 129 | | lic disclosure would directly harm the national 14 |
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130 | 130 | | security interests of the United States. 15 |
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131 | 131 | | (2) L |
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132 | 132 | | IMITATIONS.— 16 |
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133 | 133 | | (A) D |
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134 | 134 | | URATION.—A waiver granted under 17 |
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135 | 135 | | paragraph (1) shall last for a period of not 18 |
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136 | 136 | | more than 365 days. The head of the applicable 19 |
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137 | 137 | | executive agency, with the approval of the Di-20 |
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138 | 138 | | rector of the Office of Management and Budg-21 |
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139 | 139 | | et, and in consultation with the Secretary of 22 |
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140 | 140 | | Defense and Director of National Intelligence, 23 |
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141 | 141 | | may extend a waiver granted under such para-24 |
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142 | 142 | | graph one time, for a period up to 180 days 25 |
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145 | 145 | | •S 731 IS |
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146 | 146 | | after the date on which the waiver would other-1 |
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147 | 147 | | wise expire, if such an extension is in the na-2 |
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148 | 148 | | tional security interests of the United States 3 |
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149 | 149 | | and the Director of the Office of Management 4 |
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150 | 150 | | and Budget submits to the appropriate congres-5 |
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151 | 151 | | sional committees a notification of such waiver 6 |
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152 | 152 | | and offers a briefing to those committees on the 7 |
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153 | 153 | | information included in the notification. 8 |
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154 | 154 | | (B) N |
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155 | 155 | | UMBER.—Not more than one total 9 |
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156 | 156 | | waiver across all executive agencies may be 10 |
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157 | 157 | | granted under paragraph (1) to a single entity 11 |
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158 | 158 | | at a given time. 12 |
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159 | 159 | | (C) N |
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160 | 160 | | OTIFICATION REQUIREMENTS .—The 13 |
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161 | 161 | | notification required under subparagraphs (C) 14 |
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162 | 162 | | and (D) of paragraph (1) shall include the fol-15 |
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163 | 163 | | lowing information: 16 |
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164 | 164 | | (i) Information on the contractor, in-17 |
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165 | 165 | | cluding— 18 |
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166 | 166 | | (I) the name, address, and cor-19 |
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167 | 167 | | porate structure of the contractor; 20 |
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168 | 168 | | (II) the name, address, and cor-21 |
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169 | 169 | | porate structure of any subsidiaries or 22 |
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170 | 170 | | subcontractors involved; 23 |
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171 | 171 | | (III) all foreign ownership of the 24 |
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172 | 172 | | contractor; 25 |
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175 | 175 | | •S 731 IS |
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176 | 176 | | (IV) all foreign real estate owned 1 |
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177 | 177 | | by the contractor; and 2 |
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178 | 178 | | (V) an employee designated as 3 |
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179 | 179 | | responsible for managing any conflict 4 |
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180 | 180 | | of interests that may arise as part of 5 |
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181 | 181 | | the contract. 6 |
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182 | 182 | | (ii) Information on the covered foreign 7 |
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183 | 183 | | entities involved to the extent known by 8 |
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184 | 184 | | the contractor, including— 9 |
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185 | 185 | | (I) the name and address of the 10 |
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186 | 186 | | covered foreign entity; 11 |
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187 | 187 | | (II) the name and address of any 12 |
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188 | 188 | | subsidiaries or subcontractors in-13 |
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189 | 189 | | volved; 14 |
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190 | 190 | | (III) a complete history of any 15 |
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191 | 191 | | contracts between the covered foreign 16 |
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192 | 192 | | entity and the contractor; 17 |
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193 | 193 | | (IV) all ownership of the covered 18 |
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194 | 194 | | foreign entity; and 19 |
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195 | 195 | | (V) any legal authorities pro-20 |
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196 | 196 | | viding a foreign government with ac-21 |
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197 | 197 | | cess or control over the covered for-22 |
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198 | 198 | | eign entity. 23 |
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201 | 201 | | •S 731 IS |
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202 | 202 | | (iii) Information on the nature of the 1 |
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203 | 203 | | work performed for the covered foreign en-2 |
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204 | 204 | | tities, including— 3 |
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205 | 205 | | (I) the projected and actual dol-4 |
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206 | 206 | | lar value of the contract; 5 |
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207 | 207 | | (II) the projected and actual du-6 |
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208 | 208 | | ration of the contract; 7 |
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209 | 209 | | (III) the projected and actual 8 |
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210 | 210 | | number of employees to work on the 9 |
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211 | 211 | | contract; 10 |
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212 | 212 | | (IV) the projected and actual 11 |
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213 | 213 | | number of employees who are United 12 |
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214 | 214 | | States citizens who work on the con-13 |
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215 | 215 | | tract; 14 |
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216 | 216 | | (V) the projected and actual 15 |
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217 | 217 | | number of employees who currently or 16 |
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218 | 218 | | formerly held security clearances with 17 |
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219 | 219 | | the United States Government who 18 |
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220 | 220 | | work on the contract; 19 |
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221 | 221 | | (VI) the subject matter of the 20 |
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222 | 222 | | contract; 21 |
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223 | 223 | | (VII) any materials provided to 22 |
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224 | 224 | | the covered foreign entity in order to 23 |
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225 | 225 | | secure the contract; 24 |
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228 | 228 | | •S 731 IS |
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229 | 229 | | (VIII) any tracking number used 1 |
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230 | 230 | | by the covered foreign entity to iden-2 |
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231 | 231 | | tify the contract; 3 |
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232 | 232 | | (IX) any tracking number or in-4 |
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233 | 233 | | formation used by the contractor to 5 |
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234 | 234 | | identify the contract; and 6 |
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235 | 235 | | (X) any military or intelligence 7 |
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236 | 236 | | applications that could benefit from 8 |
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237 | 237 | | the contract. 9 |
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238 | 238 | | (iv) Justification of the executive 10 |
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239 | 239 | | agency’s need for providing the waiver. 11 |
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240 | 240 | | (v) An acceptable management over-12 |
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241 | 241 | | sight plan to ensure that the work per-13 |
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242 | 242 | | formed for the covered foreign entities does 14 |
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243 | 243 | | not compromise the work being performed 15 |
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244 | 244 | | for the Federal Government or harm the 16 |
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245 | 245 | | national security of the United States, to 17 |
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246 | 246 | | be approved at not lower than the Deputy 18 |
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247 | 247 | | Secretary level at the contracting agency. 19 |
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248 | 248 | | (3) C |
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249 | 249 | | ONTRACTOR REPORTING .—The executive 20 |
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250 | 250 | | agency granting a waiver under this subsection shall 21 |
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251 | 251 | | require the contractor, in the event the contractor 22 |
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252 | 252 | | identifies any of the following during the perform-23 |
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253 | 253 | | ance of the contract, to report the following informa-24 |
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254 | 254 | | tion to the executive agency: 25 |
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257 | 257 | | •S 731 IS |
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258 | 258 | | (A) Any human rights violations that are 1 |
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259 | 259 | | known to the contractor through information 2 |
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260 | 260 | | provided to the contractor in the course of the 3 |
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261 | 261 | | contract. 4 |
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262 | 262 | | (B) Any religious liberty violations that are 5 |
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263 | 263 | | known to the contractor through information 6 |
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264 | 264 | | provided to the contractor in the course of the 7 |
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265 | 265 | | contract. 8 |
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266 | 266 | | (C) Any risks to United States economic or 9 |
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267 | 267 | | national security identified by the contractor in 10 |
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268 | 268 | | the course of the contract. 11 |
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269 | 269 | | SEC. 4. PENALTIES FOR FALSE INFORMATION. 12 |
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270 | 270 | | (a) T |
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271 | 271 | | ERMINATION, SUSPENSION, ANDDEBAR-13 |
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272 | 272 | | MENT.—If the head of an executive agency determines 14 |
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273 | 273 | | that a consulting firm described in section 3(a)(1) has 15 |
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274 | 274 | | knowingly submitted a false certification or information 16 |
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275 | 275 | | on or after the date on which the Federal Acquisition Reg-17 |
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276 | 276 | | ulatory Council amends the Federal Acquisition Regula-18 |
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277 | 277 | | tion pursuant to such section, the head of the executive 19 |
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278 | 278 | | agency shall terminate the contract with the consulting 20 |
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279 | 279 | | firm and consider suspending or debarring the firm from 21 |
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280 | 280 | | eligibility for future Federal contracts in accordance with 22 |
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281 | 281 | | subpart 9.4 of the Federal Acquisition Regulation. 23 |
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282 | 282 | | (b) F |
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283 | 283 | | ALSECLAIMSACT.—A consulting firm de-24 |
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284 | 284 | | scribed in section 3(a)(1) that, for the purposes of the 25 |
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287 | 287 | | •S 731 IS |
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288 | 288 | | False Claims Act, knowingly hides or misrepresents one 1 |
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289 | 289 | | or more contracts with covered foreign entities, or other-2 |
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290 | 290 | | wise violates the False Claims Act, shall be subject to the 3 |
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291 | 291 | | penalties and corrective actions described in the False 4 |
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292 | 292 | | Claims Act, including liability for three times the amount 5 |
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293 | 293 | | of damages which the United States Government sustains. 6 |
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294 | 294 | | SEC. 5. DEFINITIONS. 7 |
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295 | 295 | | In this Act: 8 |
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296 | 296 | | (1) A |
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297 | 297 | | PPROPRIATE CONGRESSIONAL COMMIT -9 |
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298 | 298 | | TEES.—The term ‘‘appropriate congressional com-10 |
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299 | 299 | | mittees’’ means the Committee on Homeland Secu-11 |
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300 | 300 | | rity and Governmental Affairs of the Senate and the 12 |
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301 | 301 | | Committee on Oversight and Government Reform of 13 |
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302 | 302 | | the House of Representatives. 14 |
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303 | 303 | | (2) C |
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304 | 304 | | ONSULTING SERVICES .—The term ‘‘con-15 |
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305 | 305 | | sulting services’’ means advisory or assistance serv-16 |
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306 | 306 | | ices similar to those defined in Federal Acquisition 17 |
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307 | 307 | | Regulation 2.101, but for the purposes of this Act 18 |
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308 | 308 | | includes services provided to covered foreign entities, 19 |
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309 | 309 | | except that the term does not include the provision 20 |
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310 | 310 | | of products or services related to— 21 |
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311 | 311 | | (A) compliance with legal, audit, account-22 |
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312 | 312 | | ing, tax, reporting, or other requirements of the 23 |
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313 | 313 | | laws and standards of countries; or 24 |
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316 | 316 | | •S 731 IS |
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317 | 317 | | (B) participation in a judicial, legal, or eq-1 |
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318 | 318 | | uitable dispute resolution proceeding. 2 |
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319 | 319 | | (3) C |
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320 | 320 | | OVERED FOREIGN ENTITY .—The term 3 |
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321 | 321 | | ‘‘covered foreign entity’’ means any of the following: 4 |
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322 | 322 | | (A) The Government of the People’s Re-5 |
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323 | 323 | | public of China, the Chinese Communist Party, 6 |
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324 | 324 | | the People’s Liberation Army, the Ministry of 7 |
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325 | 325 | | State Security, or other security service or in-8 |
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326 | 326 | | telligence agency of the People’s Republic of 9 |
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327 | 327 | | China. 10 |
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328 | 328 | | (B) The Government of the Russian Fed-11 |
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329 | 329 | | eration or any entity sanctioned by the Sec-12 |
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330 | 330 | | retary of the Treasury under Executive Order 13 |
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331 | 331 | | 13662 titled ‘‘Blocking Property of Additional 14 |
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332 | 332 | | Persons Contributing to the Situation in 15 |
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333 | 333 | | Ukraine’’ (79 Fed. Reg. 16169). 16 |
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334 | 334 | | (C) The government of any country if the 17 |
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335 | 335 | | Secretary of State determines that such govern-18 |
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336 | 336 | | ment has repeatedly provided support for acts 19 |
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337 | 337 | | of international terrorism pursuant to any of 20 |
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338 | 338 | | the following: 21 |
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339 | 339 | | (i) Section 1754(c)(1)(A) of the Ex-22 |
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340 | 340 | | port Control Reform Act of 2018 (50 23 |
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341 | 341 | | U.S.C. 4318(c)(1)(A)). 24 |
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344 | 344 | | •S 731 IS |
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345 | 345 | | (ii) Section 620A of the Foreign As-1 |
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346 | 346 | | sistance Act of 1961 (22 U.S.C. 2371). 2 |
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347 | 347 | | (iii) Section 40 of the Arms Export 3 |
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348 | 348 | | Control Act (22 U.S.C. 2780). 4 |
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349 | 349 | | (iv) Any other provision of law. 5 |
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350 | 350 | | (D) Any entity included on any of the fol-6 |
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351 | 351 | | lowing lists maintained by the Department of 7 |
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352 | 352 | | Commerce: 8 |
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353 | 353 | | (i) The Entity List set forth in Sup-9 |
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354 | 354 | | plement No. 4 to part 744 of the Export 10 |
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355 | 355 | | Administration Regulations. 11 |
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356 | 356 | | (ii) The Denied Persons List as de-12 |
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357 | 357 | | scribed in section 764.3(a)(2) of the Ex-13 |
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358 | 358 | | port Administration Regulations. 14 |
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359 | 359 | | (iii) The Unverified List set forth in 15 |
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360 | 360 | | Supplement No. 6 to part 744 of the Ex-16 |
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361 | 361 | | port Administration Regulations. 17 |
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362 | 362 | | (iv) The Military End User List set 18 |
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363 | 363 | | forth in Supplement No. 7 to part 744 of 19 |
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364 | 364 | | the Export Administration Regulations. 20 |
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365 | 365 | | (E) Any entity identified by the Secretary 21 |
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366 | 366 | | of Defense pursuant to section 1237(b) of the 22 |
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367 | 367 | | Strom Thurmond National Defense Authoriza-23 |
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368 | 368 | | tion Act for Fiscal Year 1999 (Public Law 24 |
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369 | 369 | | 105–261; 50 U.S.C. 1701 note). 25 |
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372 | 372 | | •S 731 IS |
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373 | 373 | | (F) Any entity on the Non-SDN Chinese 1 |
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374 | 374 | | Military-Industrial Complex Companies List 2 |
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375 | 375 | | (NS–CMIC List) maintained by the Office of 3 |
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376 | 376 | | Foreign Assets Control of the Department of 4 |
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377 | 377 | | the Treasury under Executive Order 14032 (86 5 |
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378 | 378 | | Fed. Reg. 30145; relating to addressing the 6 |
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379 | 379 | | threat from securities investments that finance 7 |
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380 | 380 | | certain companies of the People’s Republic of 8 |
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381 | 381 | | China), or any successor order. 9 |
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382 | 382 | | (4) E |
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383 | 383 | | XECUTIVE AGENCY.—The term ‘‘executive 10 |
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384 | 384 | | agency’’ has the meaning given the term in section 11 |
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385 | 385 | | 133 of title 41, United States Code. 12 |
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386 | 386 | | (5) F |
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387 | 387 | | ALSE CLAIMS ACT .—The term ‘‘False 13 |
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388 | 388 | | Claims Act’’ means sections 3729 through 3733 of 14 |
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389 | 389 | | title 31, United States Code. 15 |
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390 | 390 | | (6) N |
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391 | 391 | | ORTH AMERICAN INDUSTRY CLASSIFICA -16 |
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392 | 392 | | TION SYSTEM’S INDUSTRY GROUP CODE 5416 .—The 17 |
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393 | 393 | | term ‘‘North American Industry Classification Sys-18 |
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394 | 394 | | tem’s Industry Group code 5416’’ refers to the 19 |
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395 | 395 | | North American Industry Classification System cat-20 |
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396 | 396 | | egory that covers Management, Scientific, and Tech-21 |
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397 | 397 | | nical Consulting Services as Industry Group code 22 |
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398 | 398 | | 5416, including industry codes 54151, 541611, 23 |
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399 | 399 | | 541612, 541613, 541614, 541618, 54162, 541620, 24 |
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400 | 400 | | 54169, and 541690. 25 |
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403 | 403 | | •S 731 IS |
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404 | 404 | | SEC. 6. NO ADDITIONAL FUNDING. 1 |
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405 | 405 | | No additional funds are authorized to be appro-2 |
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406 | 406 | | priated for the purpose of carrying out this Act. 3 |
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407 | 407 | | Æ |
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