ETHICAL Procurement Act

Full Title:
ETHICAL Procurement Act

Summary#

This bill stops the Secretary of Defense from entering into, renewing, or extending contracts for goods or services from a company when certain current officials or their close relatives have key roles or big ownership in that company. It names specific covered people: those appointed by the President with Senate confirmation; executive branch employees in Schedule C policy or confidential positions; special government employees; and members of the Senior Executive Service. The bill also covers immediate family members of the President and of the listed officials if they are officers, directors, partners, or hold significant ownership or would get a substantial financial benefit. The Secretary of Defense must issue rules within 30 days after the law takes effect to define terms, set thresholds, and describe how to identify affected people and companies. The bill defines "immediate family member" as a parent, child, sibling, spouse, or domestic partner, and uses the statutory definition for "special government employee."

What it means for you#

  • If you work for or own a company that sells goods or services to the Department of Defense, your company could be ineligible for contracts if an officer, director, partner, or majority owner is one of the covered officials or an immediate family member as described in the bill.
  • Companies will need to check their leadership and ownership against the rule and watch for regulations the Secretary of Defense issues.
  • The Department of Defense will have 30 days to write rules that explain how the restriction works and how to determine who is covered.

Expenses#

No publicly available information.

Proponents' View#

The bill is titled to ensure "Transparency, Honesty, and Integrity for Contracting, Acquisition, and Lifecycle Procurement," and its text states the prohibition and fast rulemaking requirement to prevent contracts where covered officials or their immediate family have key roles or significant financial interests.

Opponents' View#

No publicly available information.