,,ii  #aai? ,,congress  #b;d ,session   
,s4 #dbab  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,m>* #be1 #bjbf,ms4    
,w>r5 7= h]self & ,mr4 ,hawley7         
introduc$ ! foll[+ bill2 :i* 0 read     
twice & ref]r$ to ! ,committee on ,arm$ 
,s]vices  ,a ,,bill  ,to require        
contractors ( ! ,dep>tm5t ( ,def5se to  
prioritize meet+ w>fight] ne$s ov] !    
pur*ase ( _! own securities & executive 
comp5sation1 & = o!r purposes4  #a4     
,%ort title ,?is ,act may be cit$ z     
,prioritiz+ ! ,w>fight] 9 ,def5se       
,contract+ ,act ( #bjbf4  #b4           
,def9itions ,9 ?is ,act3 7#a7           
,appropriate congressional committees ,!
 t]m appropriate congressional          
committees means-- 7,a7 ! ,committee on 
,arm$ ,s]vices & ! ,committee on ,homel&
 ,security & ,gov]nm5tal ,affairs ( !   
,s5ate2 &  7,b7 ! ,committee on ,arm$   
,s]vices & ! ,committee on ,ov]sight &  
,gov]nm5t ,re=m ( ! ,h\se (             
,repres5tatives4  7#b7 ,cov]$ employee  
,! t]m cov]$ employee means an employee1

 executive1 or (fic]4  7#c7 ,equity     
security ,! t]m equity security has !   
mean+ giv5 su* t]m 9 section #c7;a7 ( ! 
,securities ,ex*ange ,act ( #aicd 7#ae  
,u4,s4,c4 #gh;c7a774  7#d7 ,cov]$       
comp5sation ,! t]m cov]$ comp5sation--  
7,a7 means-- 7i7 sal>y2  7ii7 bonuses2  
7iii7 any comp5sation t is grant$1 e>n$1
 or ve/$ bas$ :olly or 9 "p ^u !        
atta9m5t ( any f9ancial report+ measure 
or o!r p]=mance metric2  7iv7           
equity-bas$ comp5sation2  7v7 "t- or    
s]vice-bas$ aw>ds2  7vi7 aw>ds bas$ on  
nonf9ancial metrics2 &  7vii7 any pr(its
 realiz$ f ! buy+ or sell+ ( securities2
 &  7,b7 does n include-- 7i7 r\t9e     
employee #dja7k7 plans2 or  7ii7        
employee /ock own]%ip plans4  7#e7 ,l>ge
 contractor ,! t]m l>ge contractor means
 a contractor t receiv$ m ?an           
#bej1jjj1jjj 9 annual rev5ue f contracts
 or lic5ses f ! ,dep>tm5t ( ,def5se 9   
any ( ! previ\s #c ye>s4  7#f7 ,national
 securities ex*ange ,! t]m national     
securities ex*ange means an ex*ange     

regi/]$ z a national securities ex*ange 
9 accordance ) section #f ( !           
,securities ,ex*ange ,act ( #aicd 7#ae  
,u4,s4,c4 #gh;f74  7#g7 ,%ort-t]m       
f9ancial metrics ,! t]m %ort-t]m        
f9ancial metrics means-- 7,a7 free ca%  
fl[2  7,b7 op]at+ ca% fl[2 &  7,c7 e>n+s
 p] %>e driv5 by /ock buy-backs4  #c4   
,limitations on contractors ( ,dep>tm5t 
( ,def5se  7a7 ,9 g5]al ,! ,secret>y (  
,def5se may n ent] into a contract ) a  
l>ge contractor = ! procurem5t ( goods  
or s]vices unless su* contractor agrees 
9 writ+ t-- 7#a7 ! entity %all n-- 7,a7 
pur*ase an equity security ( su* entity1
 or any p>5t entity ( su* entity1 t is  
li/$ on a national securities ex*ange2  
or  7,b7 pay divid5ds or make any o!r   
capital di/ribution ) respect to !      
equity securities ( ! entity2 &  7#b7 ! 
cov]$ comp5sation ( a cov]$ employee (  
su* entity %all-- 7,a7 comply ) !       
requirem5ts ( section #cgdd ( title #aj1
 ,unit$ ,/ates ,code2  7,b7 n be l9k$ to
 %ort-t]m f9ancial metrics2 &  7,c7 n   

exce$ #e1jjj1jjj p] cal5d> ye>4  7b7    
,compliance plan & proc$ures  7#a7 ,9   
g5]al ,any contractor subject to !      
requirem5ts ( subsection 7a7 %all       
develop & implem5t a plan to prev5t !   
activities prohibit$ "u t subsection4   
7#b7 ,c]tification ,prior to ent]+ into 
a contract ) ! ,dep>tm5t ( ,def5se1 &   
annually !reaft] = ! duration ( !       
contract1 a contractor %all submit to ! 
contract+ (fic] ( ! ,dep>tm5t a         
c]tification t to ! be/ ( ! k ( !       
contractor1 nei!r ! contractor nor any  
cov]$ employee ( ! contractor is engag$ 
9 any ( ! activities prohibit$ "u       
subsection 7a74  7c7 ,waiv] au?ority    
7#a7 ,id5tification ( contractors       
eligible = waiv] ,beg9n+ on ! date ( !  
enactm5t ( ?is ,act1 & on a roll+ basis 
!reaft]1 ! ,secret>y ( ,def5se-- 7,a7   
%all review & det]m9e :e!r a l>ge       
contractor meets ! contractor metrics   
describ$ 9 p>agraph 7#d72 &  7,b7 = any 
l>ge contractor assess$ by ! ,secret>y  
to meet su* metrics1 may grant !        

contractor a waiv] ( ! requirem5ts (    
subsection 7a74  7#b7 ,notice ,= any    
waiv] grant$ "u p>agraph 7#a71 !        
,secret>y %all submit to ! appropriate  
congressional committees notification ( 
! waiv] t includes ju/ification = !     
waiv]4  7#c7 ,annual review  7,a7 ,9    
g5]al ,= any contractor grant$ a waiv]  
"u p>agraph 7#a71 ! ,secret>y %all      
conduct1 n lat] ?an #a ye> aft] ! date  
on :i* ! contractor 0 grant$ a waiv] "u 
su* p>agraph & n less frequ5tly ?an once
 a ye> !reaft]1 a review to det]m9e :e!r
 ! contractor cont9ues to meet ! metrics
 describ$ 9 p>agraph 7#d74  7,b7        
,au?ority to revoke waiv]  ,! ,secret>y 
may revoke a waiv] issu$ to any         
contractor t ! ,secret>y det]m9es1 dur+ 
a review conduct$ pursuant to           
subp>agraph 7,a71 no long] meets !      
metrics describ$ 9 p>agraph 7#d74  7#d7 
,contractor metrics ,! contractor       
metrics describ$ 9 ?is p>agraph are z   
foll[s3 7,a7 ,n less ?an #hj p]c5t ( !  
"t dur+ ! prec$+ fiscal ye>1 !          

contractor met contract requirem5ts     
reg>d+ deliv]y dates ) demon/rat$1      
fieldable capability or associat$       
te*nical a*ievem5t4  7,b7 ,n less ?an   
#hj p]c5t ( ! "t dur+ ! prec$+ fiscal   
ye>1 ! contractor met contract read9ess 
requirem5ts4  7,c7 ,n less ?an #hj p]c5t
 ( ! "t dur+ ! prec$+ fiscal ye>1 !     
contractor demon/rat$ te*nical p]=mance 
metrics & regul> value assessm5ts ) !   
us] community4  7,d7 ,n less ?an #hj    
p]c5t ( ! "t dur+ ! prec$+ fiscal ye>1 !
 contractor respond$ to reque/s =       
c]tifi$ or unc]tifi$ co/ or pric+ data  
by ! due date /at$ 9 ! reque/ =         
submissions4  7#e7 ,rule ( con/ruction  
,no?+ 9 ?is subsection may be con/ru$ to
 sup]s$e exi/+ limitations t re/rict    
,f$]al funds f be+ us$ = contractor     
employee comp5sation4  7d7 ,review &    
en=cem5t  7#a7 ,e/abli%m5t ( =mal review
 process ,n lat] ?an #cj days aft] !    
date ( ! enactm5t ( ?is ,act1 !         
,secret>y ( ,def5se %all e/abli% a =mal 
review me*anism = id5tify+1 on a cont9u+

 basis1 ,def5se contractors t are 9     
violation ( ! requirem5ts ( subsection  
7a74  7#b7 ,r5egotiation ( exi/+        
contracts  7,a7 ,review & id5tification 
,! ,secret>y %all review all contracts 9
 exi/5ce on ! day be=e ! date ( !       
enactm5t ( ?is ,act & id5tify any       
contract to be modifi$ 9 ! int]e/ ( !   
,dep>tm5t4  7,b7  ,r5egotiation  ,= ea* 
contract id5tifi$ by ! ,secret>y        
pursuant to subp>agraph 7,a71 !         
,secret>y %all r5egotiate su* contract 9
 accordance ) ! requirem5ts ( ?is       
section4  7#c7 ,evid5ce & notification (
 violation  7,a7 ,9 g5]al ,if a         
contract+ (fic] ( ! ,dep>tm5t f9ds1 or  
receives & sub/antiates1 an allegation  
describ$ 9 subp>agraph 7,b71 ! ,secret>y
 %all-- 7i7 imm$iately notify !         
contractor ( ! violation 9 writ+2 &     
7ii7 track & cont9ually update !        
allegation 9 ! ,contractor ,p]=mance    
,assessm5t ,report+ ,sy/em & ! ,sy/em = 
,aw>d ,managem5t ( ! ,g5]al ,s]vices    
,adm9i/ration1 = %>$ use across         

contract+ (fic]s4  7,b7 ,allegation     
describ$ ,an allegation describ$ 9 ?is  
subp>agraph is any allegation relat+    
to-- 7i7 a contractor ( ! ,dep>tm5t or  
any cov]$ employee ( su* contractor     
engag+ 9 an activity prohibit$ "u       
subsection 7a71 if ! requirem5ts ( su*  
subsection h n be5 waiv$ "u subsection  
7c77#a72 or  7ii7 a contractor :o       
receiv$ a waiv] "u subsection 7c77#a7 t 
is und]p]=m+ ) respect to               
prioritization1 inve/m5t1 or production 
su* t ! contractor no long] meets !     
contractor metrics describ$ 9 subsection
 7c77#d74  7,c7 ,cont5ts ( notice ,!    
notice issu$ "u subp>agraph 7,a77i7 %all
 include1 dep5d+ on ! basis ( !         
violation1 a description (-- 7i7 !      
conduct ( ! contractor or ! cov]$       
employee ( ! contractor t is prohibit$  
"u subsection 7a72 or  7ii7 ! nature ( !
 und]p]=mance or insuffici5t            
prioritization1 inve/m5t1 or production 
spe$ ( ! contractor t fails to meet !   
contractor metrics describ$ 9 subsection

 7c77#d74  7#d7 ,rem$iation  7,a7 ,9    
g5]al ,n lat] ?an #ae days aft] ! date  
on :i* ! contractor receives ! notice ( 
a violation "u p>agraph 7#c77;,a77i71 ! 
contractor may submit to ! ,secret>y a  
rem$iation plan1 approv$ by ! bo>d (    
directors ( ! contractor1 = review by ! 
,secret>y4  7,b7 ,cont5t ( plan ,!      
rem$iation plan submitt$ "u subp>agraph 
7,a7 %all include a description ( !     
mann] by :i* ! contractor %all rem$y !  
violation1 includ+1 if applicable1 a    
/rategy = meet+ ! contractor metrics    
describ$ 9 subsection 7c77#d74  7,c7    
,id5tification ( defici5cies ,if !      
,secret>y id5tifies defici5cies 9 !     
rem$iation plan submitt$ "u subp>agraph 
7,a71 ! ,secret>y %all engage ) !       
contractor z ne$$ to resolve su*        
defici5cies4  7#e7 ,p5alties ,if a      
contractor engages 9 an activity        
prohibit$ "u subsection 7a7 & 0 n grant$
 a waiv] "u subsection 7c77#a7 or if !  
contractor 0 grant$ a waiv] "u          
subsection 7c77#a7 b no long] meets !   

contractor metrics describ$ 9 subsection
 7c77#d71 ! contract+ (fic] ( !         
,dep>tm5t may take "o or m ( ! foll[+   
actions aga9/ ! contractor3 7,a7 ,susp5d
 paym5t "u "o or m contracts1 at !      
discretion ( ! ,dep>tm5t4  7,b7 ,revoke 
! waiv] issu$ "u subsection 7c77#a74    
7,c7 ,t]m9ate ! eligibility ( !         
contractor to receive progress paym5ts  
"u section #chjd ( title #aj1 ,unit$    
,/ates ,code4  7,d7 ,t]m9ate ! contract 
= default or cause 9 accordance ) !     
t]m9ation clause = ! contract4  7,e7    
,ref] ! matt] to ! ,secret>y to claw    
back all or "p ( ! cov]$ comp5sation    
giv5 to a cov]$ employee4  7,f7 ,ref] ! 
matt] to ! relevant susp5sion & deb>m5t 
(ficial4  7,g7 ,ref] ! matt] to !       
,secret>y = o!r adm9i/rative actions4   
7,h7 ,ref] ! matt] to ! ,attorney ,g5]al
 = prosecution "u any applicable law4   
7,i7 ,cease advocacy = ! contractor =   
=eign milit>y sales & direct comm]cial  
sales4  7,j7 ,prohibit ! ,dep>tm5t f    
ent]+ into a new contract ) !           

contractor4  7e7 ,reports to ,congress  
7#a7 ,annual report  7,a7 ,9 g5]al ,n   
lat] ?an "o ye> aft] ! date ( ! enactm5t
 ( ?is ,act1 & annually !reaft]1 !      
,secret>y ( ,def5se %all submit to !    
appropriate congressional committees a  
report t includes1 = ! "o-ye> p]iod     
prec$+ submission ( ! report-- 7i7 a li/
 ( all contractors subject to !         
requirem5ts ( subsection 7a72  7ii7 =   
ea* contractor1 a copy ( ! c]tification 
submitt$ "u subsection 7b77#b72  7iii7 a
 li/ ( all contractors grant$ a waiv] "u
 subsection 7c77#a7 & ! ju/ification =  
ea* waiv]2 &  7iv7 a li/ ( all entities 
t h violat$ ! c]tification submitt$ "u  
subsection 7b77#b7 or div]g$ f !        
practices t ju/ifi$ ! grant+ ( a waiv]  
"u subsection 7c77#a74  7,b7            
,publication ,n lat] ?an #cj days aft] !
 date ( submission ( ! report "u        
subp>agraph 7,a71 ! ,secret>y %all make 
! report publicly available4  7#b7      
,qu>t]ly report ,n lat] ?an #ij days    
aft] ! date ( ! enactm5t ( ?is ,act1 & n

 less frequ5tly ?an once e #ij days     
!reaft]1 ! ,secret>y %all submit to !   
appropriate congressional committees a  
report t includes1 = ! p]iod cov]$ by ! 
report-- 7,a7 a li/ ( all ( !           
contractors t submitt$ a reque/ = a     
waiv] "u subsection 7c77#a72 &  7,b7 !  
unclassifi$ summ>ies ( ! mat]ials       
submitt$ by su* contractors to !        
,dep>tm5t 9 support ( ! reque/s = a     
waiv]4