H.R. 7604: Contracting America First Act

This bill, titled the Contracting America First Act, aims to limit federal contracts for certain software systems primarily to companies that are domestically owned. The key provisions include:

Prohibition on Federal Contracts

The bill prohibits federal agencies from entering into, renewing, or extending contracts for specific software systems with companies that are internationally owned. This means that if a software company is primarily owned by non-U.S. citizens, federal agencies cannot do business with them for these contracts.

Certification Requirements

Additionally, any company that seeks to obtain a contract for the covered software systems must certify, under penalty of perjury, that it is not an internationally owned software company. This adds a layer of verification to ensure compliance with the prohibition.

Waiver Authority

There is a provision that allows the heads of agencies to waive these prohibitions on a case-by-case basis. If a federal agency head believes that a waiver is necessary for national security reasons, they must submit a written justification to the appropriate congressional committees within 30 days after granting the waiver.

Contract Termination

If an agency head finds that a contractor has violated the prohibition or has provided false certification, the agency has the authority to terminate the contract. It can do so either for default or for convenience and may also pursue other remedies available under law, including debarment or suspension from future federal contracts.

Update of Federal Acquisition Regulation (FAR)

The bill requires that the Federal Acquisition Regulation be updated to reflect the new prohibitions and requirements within 180 days following the enactment of this bill.

Definitions

The bill includes specific definitions for terms used within the text, which help clarify its provisions:

• Agency: Defined in accordance with the existing legal definition for executive agencies.
• Covered Software System: Refers to software systems that store, process, or provide access to sensitive personal information of 500 or more federal employees or officers.
• Internationally Owned Software Company: A company that is predominantly owned (more than 50%) by individuals who are not U.S. citizens.
• Sensitive Personal Information: This includes information like Social Security numbers, medical records, personally identifiable information, or any other information that, if compromised, could lead to identity theft or national security risks.

Impact on Federal Contracts

The overall intention of the bill is to ensure that federal contracts for software systems that handle sensitive information are awarded primarily to companies owned by U.S. citizens, enhancing national security and protecting sensitive personal information held by the government.

Relevant Companies

None found.