# Plain Language Summary: Preventing Personal Conflicts of Interest in Federal Acquisition Act

This bill is about stopping contractors who work for the federal government from having conflicts of interest—situations where they might benefit personally from their government work or where their loyalties could be divided. Right now, conflict-of-interest rules exist but only cover certain types of government contracts. This bill expands those rules significantly to cover more types of work that contractors do for federal agencies.

The main change is that contractors can no longer work for both a government agency AND a company that the agency regulates at the same time. For example, if a contractor is helping the Environmental Protection Agency write pollution rules, that same contractor can't simultaneously be consulting for a coal company that the EPA oversees. The bill also requires contractors to disclose any work they've done for regulated companies in the past five years and get written permission before taking on new work that could create conflicts. Contractors must also screen their employees for conflicts, report any violations they discover, and take disciplinary action against employees who break the rules.

The bill creates real consequences for violations. Individuals who knowingly break these rules can face civil penalties up to $50,000 per violation plus having to return all the money they were paid under the contract. Companies face penalties up to $500,000 per violation plus repayment. The government can also cancel contracts, fire contractors, or ban them from future government work if they violate these rules. These penalties apply for up to six years after a violation occurs, giving the government time to investigate and take action.

The bill gives federal agencies one year to update their contracting rules to implement these changes, and the new rules would apply to all new contracts and task orders issued after that deadline. Agencies can grant exceptions in rare cases where there's a "compelling reason" to allow a conflict, but they must publicly explain why they're making that exception so taxpayers can see the decision.

Preventing Personal Conflicts of Interest in Federal Acquisition Act

Maloney, Carolyn B.

Preventing Personal Conflicts of Interest in Federal Acquisition Act This bill addresses conflicts of interest in federal acquisition. Specifically, the bill directs the Federal Acquisition Regulatory Council to (1) expand the scope of rules to prevent personal conflicts of interest beyond the limited types of functions or services that are currently addressed in a specified part of the Federal Acquisition Regulation (FAR), and (2) revise the FAR to address the functions and services that give rise to heightened concerns for personal conflicts of interest. The bill similarly expands the scope of the Office of Federal Procurement Policy's standard policy to prevent personal conflicts of interest by contractor employees performing relevant acquisition functions for or on behalf of a federal agency or department. The bill prohibits contractors, contractor employees, and subcontractors and their employees from providing services supporting the regulatory, policymaking, or adjudicative functions of an agency at the same time that the contractor, employees, or subcontractor provides services to an entity regulated by, or having non-routine business before, the agency, except where there is a compelling reason, as documented in writing. The Department of Justice may bring a civil action in U.S. district court for violations of this bill.