S.Amdt. 6119

This amendment aims to stop the Department of Defense from doing business with certain consulting firms. It adds a new section to the bill that prohibits the Secretary of Defense from entering into contracts, awarding grants, or providing any financial benefit to a covered consultancy.

The amendment adds the following requirements and rules:

• Disclosure and Penalties: Anyone bidding for consulting services must disclose if they have worked with a covered entity in the last five years or if they currently have active contracts or funds from one. If a contractor fails to disclose this, the Secretary shall terminate the contract and can ban the contractor for up to 5 years.

• Path to Certification: A covered consultancy can regain eligibility by providing a signed certification stating they are no longer working with or receiving money from a covered entity, and that they will not do so while working with the Department of Defense.

• Official Guidance: The Secretary must create policies to implement this ban, provide best practices for firms to avoid becoming covered consultancies, and update the Defense Federal Acquisition Regulation Supplement within one year.

• Key Definitions:

  • A covered consultancy is a company that failed to disclose activities with a covered entity, gave false information to a Federal agency, or failed to disclose conflicts of interest.
  • A covered entity includes various foreign governments and organizations, specifically those from the People's Republic of China, the Russian Federation, North Korea, Iran, Cuba, and the Maduro regime in Venezuela, as well as entities on specific sanctions or commerce lists.