S. 5684: No Cash for Incompetent and Malicious Contractors Act

This bill would require federal agencies to bar certain contractors from doing business with the federal government if they, or their employees, improperly disclose a client’s personal information.

What triggers debarment

If a contractor, or one of its employees, is convicted in criminal court or found liable in a civil judgment for non-consensual disclosure of a client’s personally identifiable information, the agency must debar the contractor from future federal contracts.

The bill specifically covers disclosure of:

• Social Security numbers
• Tax return information
• Individually identifiable health information
• Trade secrets

How long the contractor could be barred

The debarment would last at least 1 year and up to 5 years, depending on how serious the conduct was.

Suspension while a case is pending

If a contractor, or one of its employees, is charged with a criminal offense involving improper disclosure of that kind of information, the agency must suspend the contractor from federal contracting while the matter is investigated. The length and procedure for the suspension would follow existing Federal Acquisition Regulation rules.

How the process would work

The bill says the debarment and suspension procedures must follow the standard federal procurement rules already used for these actions.

Relevant Companies

None found