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S. 675, Never Contract With the Enemy Act 1 (June 20, 2014)

handle is hein.congrec/cbo1754 and id is 1 raw text is: CONGRESSIONAL BUDGET OFFICE
COST ESTIMATE
June 20, 2014
S. 675
Never Contract With the Enemy Act
As ordered reported by the Senate Committee on Homeland Security
and Governmental Affairs on May 21, 2014
S. 675 would require the Department of Defense (DoD) to identify entities that use
resources received from the federal government to provide aid to a person or group that is
actively opposing U.S. or allied armed forces in overseas contingency operations. The bill
also would require DoD to identify entities that do not take sufficient care to ensure that
government resources are not being used to support the enemy.
The bill would require that contracts, grants, or cooperative agreements that are used or
performed outside the United States and have a value of $50,000 or more include a clause
giving federal agencies the right to examine the business records of the other party if the
agency has reason to believe the recipient is supporting the enemy.
S. 675 would require DoD to develop a program under which information on those entities
found to be aiding the enemy may be provided to other federal agencies. The bill would
authorize all federal agencies to cancel contractual agreements with such entities and to bar
them from receiving additional contracts, grants, or cooperative agreements with the
federal government. The bill also would require annual reports on the use of the authority
during the 2016-2018 period.
DoD currently conducts a similar program and notifies military commands engaged in
overseas contingency operations of entities that have been identified as supporters of the
enemy. Certain military commands are authorized under current law to cancel contracts
with those identified. The department reports such cancelled contracts in the Federal
Awardee Performance and Integrity Information System. DoD indicates that it would post
the list of all entities identified as supporters of the enemy to that system where the
information would be available to other federal agencies.
CBO estimates that providing access to the list of enemy supporters and authorizing other
federal agencies to cancel contracts and disbar contractors would have discretionary costs
of less than $500,000 over the 20 15-2019 period; any spending would be subject to the
availability of appropriated funds. Pay-as-you-go procedures do not apply to this
legislation because it would not affect direct spending or revenues.

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