Department of Defense Ethics and Anti-corruption Act of 2019

II 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 Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 3 (a) SHORT TITLE.—This Act may be cited as the 4 ‘‘Department of Defense Ethics and Anti-corruption Act 5 of 2019’’. 6 (b) TABLE OF CONTENTS.—The table of contents for 7 this Act is as follows: 8 Sec. 1. Short title; table of contents. TITLE I—REVOLVING DOOR AND CONTRACTOR INFLUENCE VerDate Sep 11 2014 23:45 May 28, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6211 E:\BILLS\S1503.IS S1503 pamtmann on DSKBFK8HB2PROD with BILLS 2 •S 1503 IS Sec. 101. Heightened revolving door requirements. Sec. 102. Requirements for defense contractors relating to certain former De- partment 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 De- partment. Sec. 107. Enhancement of recusal for conflicts of personal interest require- ments 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 serv- ing in general or flag officer grades. TITLE I—REVOLVING DOOR AND 1 CONTRACTOR INFLUENCE 2 SEC. 101. HEIGHTENED REVOLVING DOOR REQUIREMENTS. 3 Section 847 of the National Defense Authorization 4 Act for Fiscal Year 2008 (Public Law 110–181; 10 U.S.C. 5 1701 note) is amended— 6 (1) in subsection (a)(1), by striking ‘‘within two 7 years of leaving service’’ and inserting ‘‘within four 8 years of leaving service’’; and 9 (2) in subsection (b)— 10 VerDate Sep 11 2014 23:45 May 28, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S1503.IS S1503 pamtmann on DSKBFK8HB2PROD with BILLS 3 •S 1503 IS (A) in paragraph (1)— 1 (i) by striking ‘‘retained by the De- 2 partment of Defense in a central database 3 or repository maintained by the General 4 Counsel of the Department for not less 5 than five years’’ and inserting ‘‘retained by 6 the Department of Defense in a central 7 database or repository maintained by the 8 General Counsel Standards and Conduct 9 Office of the Department for not less than 10 ten years’’; and 11 (ii) by inserting ‘‘and shall be posted 12 on a publicly available Internet website of 13 the General Counsel Standards and Con- 14 duct Office’’ after ‘‘opinion was provided’’; 15 and 16 (B) in paragraph (2), by inserting ‘‘not 17 less than biannually’’ after ‘‘conduct periodic 18 reviews’’. 19 SEC. 102. REQUIREMENTS FOR DEFENSE CONTRACTORS 20 RELATING TO CERTAIN FORMER DEPART- 21 MENT OF DEFENSE OFFICIALS AND LOB- 22 BYING ACTIVITIES. 23 (a) REQUIREMENTS.— 24 VerDate Sep 11 2014 23:45 May 28, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S1503.IS S1503 pamtmann on DSKBFK8HB2PROD with BILLS 4 •S 1503 IS (1) IN GENERAL.—Chapter 141 of title 10, 1 United States Code is amended by adding at the end 2 the following new section: 3 ‘‘§ 2410t. Defense contractors report: requirements 4 concerning former Department of De- 5 fense officials and lobbying activities 6 ‘‘(a) IN GENERAL.—Each contract for the procure- 7 ment of goods or services in excess of $10,000,000, other 8 than a contract for the procurement of commercial prod- 9 ucts or services, that is entered into by the Department 10 of Defense shall include a provision under which the con- 11 tractor agrees to submit to the Secretary of Defense, not 12 later than April 1 of each year such contract is in effect, 13 a written report setting forth the information required by 14 subsection (b). 15 ‘‘(b) REPORT INFORMATION.—Except as provided in 16 subsection (c), a report by a contractor under subsection 17 (a) shall— 18 ‘‘(1) list the name of each person who— 19 ‘‘(A) is a former officer or employee of the 20 Department of Defense or a former or retired 21 member of the armed forces who served— 22 ‘‘(i) in an Executive Schedule position 23 under subchapter II of chapter 53 of title 24 5; 25 VerDate Sep 11 2014 23:45 May 28, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S1503.IS S1503 pamtmann on DSKBFK8HB2PROD with BILLS 5 •S 1503 IS ‘‘(ii) in a position in the Senior Exec- 1 utive Service under subchapter VIII of 2 chapter 53 of title 5; 3 ‘‘(iii) in a position compensated at a 4 rate of pay for grade O–6 or above under 5 section 201 of title 37; or 6 ‘‘(iv) as a program manager, deputy 7 program manager, procuring contracting 8 officer, administrative contracting officer, 9 source selection authority, member of the 10 source selection evaluation board, or chief 11 of a financial or technical evaluation team 12 for a contract with a value in excess of 13 $10,000,000; and 14 ‘‘(B) during the preceding calendar year 15 was provided compensation by the contractor, if 16 such compensation was first provided by the 17 contractor not more than four years after such 18 officer, employee, or member left service in the 19 Department of Defense; 20 ‘‘(2) in the case of each person listed under 21 subparagraph (A)— 22 ‘‘(A) identify the agency in which such per- 23 son was employed or served on active duty dur- 24 VerDate Sep 11 2014 23:45 May 28, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S1503.IS S1503 pamtmann on DSKBFK8HB2PROD with BILLS 6 •S 1503 IS ing the last two years of such person’s service 1 with the Department of Defense; 2 ‘‘(B) state such person’s job title and iden- 3 tify each major defense system, if any, on which 4 such person performed any work with the De- 5 partment of Defense during the last two years 6 of such person’s service with the Department; 7 and 8 ‘‘(C) state such person’s current job title 9 with the contractor and identify each major de- 10 fense system on which such person has per- 11 formed any work on behalf of the contractor; 12 and 13 ‘‘(3) if the contractor is a client, include— 14 ‘‘(A) a statement that— 15 ‘‘(i) lists each specific issue for which 16 the contractor, any employee of the con- 17 tractor, or any lobbyist paid by the con- 18 tractor engaged in lobbying activities with 19 the Department of Defense; and 20 ‘‘(ii) specifies the Federal rule or reg- 21 ulation, Executive order, or other program, 22 policy, contract, or position of the Depart- 23 ment of Defense to which the lobbying ac- 24 tivities described in clause (i) related; 25 VerDate Sep 11 2014 23:45 May 28, 2019 Jkt 089200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S1503.IS S1503 pamtmann on DSKBFK8HB2PROD with BILLS 7 •S 1503 IS ‘‘(iii) lists each lobbying activity relat- 1 ing to the Department of Defense that the 2 contractor, any employee of the contractor, 3 or any lobbyist paid by the contractor has 4 engaged in on behalf of the contractor, in- 5 cluding— 6 ‘‘(I) each document prepared by 7 the contractor, any employee of the 8 contractor, or any lobbyist paid by the 9 contractor that was submitted to an 10 officer or employee of the Department 11 of Defense by the lobbyist; 12 ‘‘(II) each meeting that was a 13 lobbying contact with an officer or 14 employee of the Department of De- 15 fense, including the subject of the 16 meeting, the date of the meeting, and 17 the name and position of each indi- 18 vidual who attended the meeting; 19 ‘‘(III) each phone call made to an 20 officer or employee of the Department 21 of Defense that was a lobbying con- 22 tact, including the subject of the 23 phone call, the date of the phone call, 24 and the name and position of each in- 25 VerDate Sep 11 2014 23:45 May 28, 2019 Jkt 089200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S1503.IS S1503 pamtmann on DSKBFK8HB2PROD with BILLS 8 •S 1503 IS dividual who was on the phone call; 1 and 2 ‘‘(IV) each electronic communica- 3 tion sent to an officer or employee of 4 the Department of Defense that was a 5 lobbying contact, including the subject 6 of the electronic communication, the 7 date of the electronic communication, 8 and the name and position of each in- 9 dividual who received the electronic 10 communication; 11 ‘‘(iv) lists the name of each employee 12 of the contractor who— 13 ‘‘(I) did not participate in a lob- 14 bying contact with an officer or em- 15 ployee of the Department of Defense; 16 and 17 ‘‘(II) engaged in lobbying activi- 18 ties in support of a lobbying contact 19 with an officer or employee of the De- 20 partment of Defense; and 21 ‘‘(v) describes the lobbying activities 22 referred to in clause (iv)(II); and 23 ‘‘(B) a copy of any document transmitted 24 to an officer or employee of the Department of 25 VerDate Sep 11 2014 23:45 May 28, 2019 Jkt 089200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S1503.IS S1503 pamtmann on DSKBFK8HB2PROD with BILLS 9 •S 1503 IS Defense in the course of the lobbying activities 1 described in subparagraph (A)(iv)(II). 2 ‘‘(c) DUPLICATE INFORMATION NOT REQUIRED.— 3 An annual report submitted by a contractor pursuant to 4 subsection (b) need not provide information with respect 5 to any former officer or employee of the Department of 6 Defense or former or retired member of the armed forces 7 if such information has already been provided in a pre- 8 vious annual report filed by such contractor under this 9 section. 10 ‘‘(d) DEFINITIONS.—In subsection (b)(3), the terms 11 ‘client’, ‘lobbying activities’, ‘lobbying contact’, and ‘lob- 12 byist’ have the meanings given the terms in section 3 of 13 the Lobbying Disclosure Act of 1995 (2 U.S.C. 1603).’’. 14 (2) CLERICAL AMENDMENT.—The table of sec- 15 tions at the beginning of chapter 141 of such title 16 is amended by adding at the end the following new 17 item: 18 ‘‘Sec. 2410t. Defense contractors report: requirements concerning former De- partment of Defense officials and lobbying activities.’’. (b) EFFECTIVE DATE.—The amendments made by 19 subsection (a) shall take effect on the date of the enact- 20 ment of this Act, and shall apply with respect to contracts 21 entered into on or after that date. 22 VerDate Sep 11 2014 20:43 May 30, 2019 Jkt 089200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S1503.IS S1503 pamtmann on DSKBFK8HB2PROD with BILLS 10 •S 1503 IS SEC. 103. COMPTROLLER GENERAL REPORT ON POST-GOV- 1 ERNMENT EMPLOYMENT OF FORMER DE- 2 PARTMENT OF DEFENSE OFFICIALS. 3 Not later than 90 days after the date of the enact- 4 ment of this Act, the Comptroller General of the United 5 States shall initiate a review updating the information and 6 findings contained in the May 2008 Government Account- 7 ability Office report entitled, ‘‘Defense Contracting: Post- 8 Government Employment of Former DOD Officials Needs 9 Greater Transparency’’ (GAO–08–485). The Comptroller 10 General shall provide an interim briefing on the status of 11 the review to the congressional defense committees not 12 later than December 31, 2020, with a report to follow by 13 a date agreed upon with the committees. 14 SEC. 104. BAN ON HIRING CONTRACTING OFFICIALS EN- 15 FORCEABLE ON CERTAIN CONTRACTS. 16 (a) PROHIBITION.— 17 (1) IN GENERAL.—Any contract for the pro- 18 curement of goods or services, other than a contract 19 for the procurement of commercial products or serv- 20 ices, with a value in excess of $10,000,000 shall in- 21 clude a contract clause prohibiting the contractor 22 from providing compensation to a former Depart- 23 ment of Defense official described in paragraph (2) 24 within four years after such former official leaves 25 service in the Department of Defense. 26 VerDate Sep 11 2014 20:43 May 30, 2019 Jkt 089200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S1503.IS S1503 pamtmann on DSKBFK8HB2PROD with BILLS 11 •S 1503 IS (2) COVERED DEPARTMENT OF DEFENSE OFFI- 1 CIAL.—An official or former official of the Depart- 2 ment of Defense is covered by the requirements of 3 this section if such official or former official is a 4 former officer or employee of the Department of De- 5 fense or a former or retired member of the Armed 6 Forces who served as a program manager, deputy 7 program manager, procuring contracting officer, ad- 8 ministrative contracting officer, source selection au- 9 thority, member of the source selection evaluation 10 board, or chief of a financial or technical evaluation 11 team for a contract with a value in excess of 12 $10,000,000, and such person— 13 (A) participated in the contract or license 14 selection; 15 (B) determined or signed off on the tech- 16 nical requirements of the contract or license; or 17 (C) granted the contract or license. 18 (b) ADMINISTRATIVE ACTIONS.—In the event that an 19 official or former official of the Department of Defense 20 described in subsection (a)(2), or a Department of De- 21 fense contractor, knowingly fails to comply with the re- 22 quirements of this subsection, the Secretary of Defense 23 may take any of the administrative actions set forth in 24 VerDate Sep 11 2014 23:45 May 28, 2019 Jkt 089200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\S1503.IS S1503 pamtmann on DSKBFK8HB2PROD with BILLS 12 •S 1503 IS section 2105 of title 41, United States Code that the Sec- 1 retary of Defense determines to be appropriate. 2 SEC. 105. BAN ON HIRING SENIOR OFFICIALS BY GIANT DE- 3 FENSE CONTRACTORS. 4 (a) PROHIBITION.— 5 (1) IN GENERAL.—Any Department of Defense 6 contract for the procurement of goods or services [Text truncated for display. Full text available on Congress.gov.]