Summary#
This bill would add a new rule to federal procurement law that automatically places certain people on the federal exclusion list when they are convicted of specific felonies tied to federal contracts, grants, loans, or other federal financial help. The main change is an automatic 3-year entry on the System for Award Management (SAM) Exclusions list for those convicted, with a limited waiver option by an agency head. The stated policy goal is to protect federal funds and reduce fraud against federal programs.
Key points:
- Main change: People convicted of certain federal felonies that arise out of an agency contract, grant, loan, or other federal financial assistance would be identified as excluded on the SAM Exclusions list for three years.
- Who decides: The Attorney General must notify the General Services Administration (GSA) of convictions, and GSA must enter the exclusion into SAM.
- Waiver: An agency head may exempt a person from the prohibition by writing a determination and must send a copy of that exemption to Congress.
- Which crimes: The bill lists many federal felony statutes (for example, fraud, theft, money laundering, identity and computer crimes, mail and wire fraud, and related offenses).
- Guidance: The Attorney General must issue guidance for implementing the new rule within one year, in consultation with GSA.
What it means for you#
- Individuals convicted of listed felonies: If the felony is tied to a federal contract, grant, loan, or other federal financial help, the person would be entered on the SAM Exclusions list for three years. The bill treats convictions, guilty findings, guilty pleas, and certain deferred programs as convictions for this purpose.
- Contractors and grant recipients: The bill targets individuals, not companies. But a company could be affected if a key individual is excluded. This could make it harder for companies to bid for or get federal contracts or assistance if excluded people are involved.
- Agencies and agency officials: Agency heads can grant written waivers in individual cases. They must send copies of each waiver to Congress.
- Attorney General and GSA: The Attorney General must notify GSA when a covered conviction occurs. GSA must enter the 3-year exclusion into SAM. They must also work together on implementation guidance within one year.
- People seeking rehabilitation or re-entry: The bill counts some deferred adjudication or withheld-judgment programs as convictions. That could affect people who completed such programs and were not formally sentenced.
Expenses#
No publicly available information.
Possible budget or administrative effects (inferred from the bill):
- Could increase workload for the Department of Justice to notify GSA about each covered conviction.
- Could raise administrative work for GSA to enter exclusions into SAM and manage records.
- Agencies will have to review and write exemption determinations and notify Congress, adding staffing or legal review needs.
- There may be compliance costs for businesses and individuals who must check SAM status before contracting or hiring.
- The bill’s required guidance may require interagency staff time to prepare.
Proponents' View#
- The bill appears intended to protect federal money by keeping people convicted of program-related fraud and related crimes away from federal contracts and aid for a period.
- Making exclusion automatic for covered convictions could speed action and reduce the need for separate suspension or debarment proceedings.
- Including deferred-adjudication programs in the definition of conviction can close a potential loophole where people avoid formal conviction but still committed conduct that harmed federal programs.
- Requiring the Attorney General to issue guidance within a year aims to coordinate implementation and compliance.
Opponents' View#
- One concern is that the bill’s definition of “convicted” includes deferred programs and withheld judgments. This could block people who avoided formal convictions through alternative sentencing from receiving federal work for three years.
- The bill does not fully describe procedures for notice, appeal, or how excluded individuals can seek early removal from SAM, beyond the agency waiver option.
- The waiver power rests with individual agency heads and could be used inconsistently. The bill requires notifying Congress of waivers but does not set standards for when waivers should be granted.
- The bill may overlap with existing suspension and debarment systems. It says it does not prevent other actions, but it is unclear how the new automatic exclusions will interact with current processes.
- The fiscal effects are not estimated in the bill text. The administrative and compliance costs for DOJ, GSA, agencies, and affected businesses are not quantified.