,,ii  #aai? ,,congress  #b;d ,session   
,s4 #dfhe  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,june #d1 #bjbf,ms4    
,ern/ introduc$ ! foll[+ bill2 :i* 0    
read twice & ref]r$ to ! ,committee on  
,arm$ ,s]vices  ,a ,,bill  ,to prohibit 
! ,dep>tm5t ( ,def5se f contract+ )     
consultancies provid+ s]vices to c]ta9  
=eign entities1 & = o!r purposes4  #a4  
,%ort title ,?is ,act may be cit$ z !   
,end+ ,d\ble ,deal+ ,act ( #bjbf4  #b4  
,prohibition on contract+ ) c]ta9       
consultancies  7a7 ,f9d+s ,congress     
makes ! foll[+ f9d+s3 7#a7 ,! reliance  
by ! ,dep>tm5t ( ,def5se on consultants 
= mission support s]vices c create      
pot5tial organizational conflicts (     
int]e/ relat$ to national security      
matt]s due to compet+ int]e/s z a result
 ( bus9ess relation%ips ) =eign         
adv]s>ial nations & entities4  7#b7 ,x  
is imp]ative = consultants provid+      
mission support s]vices to ! ,dep>tm5t (
 ,def5se relat$ to national security    
matt]s & =eign policy int]e/s to n be   

provid+ mission support s]vices to =eign
 adv]s>ies reg>d+ ef=ts c\nt] to !      
national security & =eign policy int]e/s
 ( ! ,unit$ ,/ates4  7#c7 ,protect+     
aga9/ organizational conflicts ( int]e/ 
relat$ to =eign adv]s>ial nations &     
entities provid+ ,f$]al mission support 
s]vices is ess5tial to ! national       
security & =eign policy int]e/s ( !     
,unit$ ,/ates4  7b7 ,prohibition relat$ 
to c]ta9 contracts or grants  7#a7 ,9   
g5]al ,! ,secret>y may n aft] ! date ( !
 enactm5t ( ?is ,act ent] into1 r5ew1   
ext5d a contract )1 aw>d a grant to1    
ent] into an o!r transactional agreem5t 
)1 or o!rwise effectuate any legal      
in/rum5t result+ 9 any f9ancial b5efit  
accru+ to1 a cov]$ consultancy4  7#b7   
,disclosure ,any individual or entity t 
submits an (f] or bid to provide        
consult+ s]vices to ! ,dep>tm5t (       
,def5se %all disclose 9 su* (f] or bid  
any in=mation relevant to ! individual  
or entity ) respect to ! prohibition "u 
p>agraph 7#a71 includ+-- 7,a7 :e!r !    

individual or entity has ent]$ into a   
contract )1 or receiv$ grants or o!r    
f9ancial aw>ds f1 a cov]$ entity 9 !    
five ye>s prior to submitt+ ! (f] or    
bid2 &  7,b7 at ! "t ! contract to      
provide consult+ s]vices to ! ,dep>tm5t 
w be ent]$ into1 :e!r-- 7i7 any contract
 ent]$ into by ! individual or entity ) 
a cov]$ entity w /ill be 9 effect2 or   
7ii7 ! individual or entity w be receiv+
 funds f1 or h any unobligat$ or        
unexp5d$ funds receiv$ "u1 any grant or 
o!r f9ancial aw>d f a cov]$ entity4     
7#c7 ,p5alties  7,a7 ,9 g5]al ,if !     
,secret>y det]m9es t a contractor ( !   
,dep>tm5t fail$ to make ! disclosure    
requir$ by p>agraph 7#b71 ! ,secret>y   
%all-- 7i7 t]m9ate ! applicable contract
 = cause2 &  7ii7 initiate a susp5sion &
 deb>m5t proce$+ ) respect to !         
contractor4  7,b7 ,maximum l5g? (       
deb>m5t ,! maximum l5g? ( a deb>m5t ( a 
contractor pursuant to ?is p>agraph %all
 be a p]iod ( #e ye>s4  7c7             
,c]tification  7#a7 ,9 g5]al ,aft] a    

det]m9ation by ! ,secret>y t a company  
is a cov]$ consultancy1 su* company may 
submit to ! ,secret>y a writt5 & sign$  
c]tification t-- 7,a7 ! consultancy no  
long] is-- 7i7 p]=m+ "u a contract ) a  
cov]$ entity2  7ii7 c>ry+ out activities
 "u a grant receiv$ f a cov]$ entity2 or
  7iii7 receiv+ funds1 or has any       
unobligat$ or unexp5d$ funds receiv$1 f 
a cov]$ entity2 &  7,b7 w n ent] into1  
accept1 or pursue a contract ) a cov]$  
entity or a grant or o!r f9ancial aw>d f
 a cov]$ entity-- 7i7 dur+ ! t]m ( a    
contract ) ! ,dep>tm5t ( ,def5se2 or    
7ii7 :ile receiv+ funds f ! ,dep>tm5t ( 
,def5se1 or obligat+ or exp5d+ any su*  
funds4  7#b7 ,/atus *ange ,^u ! approval
 by ! ,secret>y ( a c]tification        
submitt$ "u p>agraph 7#a71 a company is 
deem$ to n be a cov]$ consultancy = !   
purposes ( ?is section until !          
expiration ( ! c]tification "u p>agraph 
7#c74  7#c7 ,expiration ,a c]tification 
submitt$ by a company "u p>agraph 7#a7  
%all expire on ! e>li] ( ! date on :i* !

 company1 aft] submitt+ su*             
c]tification1 ent]s into1 ext5ds1 r5ews1
 or p]=ms "u a contract ) a cov]$ entity
 = consult+ s]vices4  7d7 ,policies &   
guidance ,n lat] ?an #ahj days aft] !   
date ( ! enactm5t ( ?is ,act1 !         
,secret>y %all issue ! foll[+ policies &
 practices3 7#a7 ,policies to implem5t !
 prohibition "u subsection 7b77#a74     
7#b7 ,be/ practices = consultancies to  
avoid becom+ cov]$ consultancies "u ?is 
section & = cov]$ consultancies to end  
_! /atus z su*4  7#c7 ,a policy         
articulat+ ! exact provisions & t]ms to 
be includ$ 9 solicitations1 contracts1 &
 grants ( ! ,dep>tm5t ( ,def5se pursuant
 to p>agraphs 7#b7 & 7#c7 ( subsection  
7b74  7e7 ,revision ( ,dep>tm5t (       
,def5se acquisition regulation ,n lat]  
?an "o ye> aft] ! date ( enactm5t ( ?is 
,act1 ! ,secret>y %all am5d ! ,def5se   
,f$]al ,acquisition ,regulation         
,supplem5t to implem5t ?is section4  7f7
 ,def9itions ,9 ?is section3 7#a7       
,consult+ s]vices ,! t]m consult+       

s]vices has ! mean+ giv5 ! t]m advisory 
& assi/ance s]vices 9 section #b4aja ( !
 ,f$]al ,acquisition ,regulation1 except
 t-- 7,a7 ! t]m does n include ! s]vices
 describ$ 9 p>agraph 7#c7 ( su* section2
 &  7,b7 ea* in/ance ( ! t]m ,f$]al is  
replac$ ) cli5t4  7#b7 ,contract        
employee ,! t]m contract employee       
means-- 7,a7 an employee ( a contractor2
 or  7,b7 9 ! case ( a contractor :o is 
an individual :o directly ent]s into a  
contract ) ! ,f$]al ,gov]nm5t1 t        
individual4  7#c7 ,contractor ,! t]m    
contractor has ! mean+ giv5 ! t]m 9     
section #gaja ( title #da1 ,unit$ ,/ates
 ,code4  7#d7 ,cov]$ consultancy ,! t]m 
cov]$ consultancy means a company t1    
itself or any subsidi>y or affiliate    
!re(1 9 ! lat] ( ! five-ye> p]iod prec$+
 ! date ( ! relevant requirem5t or !    
effective date ( ! relevant requirem5t--
 7,a7 fail$ to disclose in=mation to !  
,secret>y relat$ to any activities      
involv+ a cov]$ entity z requir$ by any 
law1 regulation1 or contract t]m1 or    

t]ms ( o!r agreem5ts2  7,b7 0 f\nd to h 
submitt$ false or mislead+ in=mation to 
any ,f$]al ag5cy 9 any ,f$]al proce$+2  
or  7,c7 0 f\nd to h fail$ to disclose  
an actual or pot5tial conflict ( int]e/ 
z requir$ by any law1 regulation1 or    
contract t]m to any ,f$]al ag5cy or 9   
any ,f$]al proce$+4  7#e7 ,cov]$ entity 
,! t]m cov]$ entity means any ( !       
foll[+3 7,a7 ,! ,gov]nm5t ( ! ,p's      
,republic ( ,*9a4  7,b7 ,! ,*9ese       
,communi/ ,p>ty4  7,c7 ,! ,p's          
,lib]ation ,army1 ! ,m9i/ry ( ,/ate     
,security1 or any security s]vice or    
intellig5ce ag5cy ( ! ,p's ,republic (  
,*9a4  7,d7 ,any entity on ! ,non-,,sdn 
,*9ese ,milit>y-,indu/rial ,complex     
,companies ,li/ 7,,ns-,,cmic-,li/7      
ma9ta9$ by ! ,(fice ( ,=eign ,assets    
,control ( ! ,dep>tm5t ( ! ,treasury "u 
,executive ,ord] #adjcb 7#hf ,f$4 ,reg4 
#cjade2 relat+ to address+ ! ?reat f    
securities inve/m5ts t f9ance c]ta9     
companies ( ! ,p's ,republic ( ,*9a71 or
 any successor ord]4  7,e7 ,any ,*9ese  

milit>y company id5tifi$ by ! ,secret>y 
( ,def5se pursuant to section #abcg7;b7 
( ! ,/rom ,?urmond ,national ,def5se    
,au?orization ,act = ,fiscal ,ye> #aiii 
7,public ,law #aje-bfa2 #ej ,u4,s4,c4   
#agja note74  7,f7 ,any entity own$ 7#be
 p]c5t or m7 or controll$1 directly or  
indirectly1 by ! ,gov]nm5t ( ! ,p's     
,republic ( ,*9a or ! ,*9ese ,communi/  
,p>ty1 includ+ ?r\gh bo>d repres5tation1
 vot+ rights1 contractual arrangem5ts1  
or o!r means ( effective control1 t is  
engag$ 9 "o or m national security      
indu/ries4  7,g7 ,! ,gov]nm5t ( !       
,russian ,f$]ation1 any entity own$ 7#be
 p]c5t or m7 or controll$1 directly or  
indirectly by ! ,russian ,f$]ation1 or  
any entity sanction$ by ! ,secret>y ( ! 
,treasury4  7,h7 ,! gov]nm5t or any     
,/ate-own$ entity ( any c\ntry if !     
,secret>y ( ,/ate det]m9es t su*        
gov]nm5t has repeat$ly provid$ support =
 acts ( int]national t]rorism pursuant  
to-- 7i7 section #aged7;c77#a77;,a7 ( ! 
,export ,control ,re=m ,act ( #bjah 7#ej

 ,u4,s4,c4 #dhac7;c77#a77;,a772  7ii7   
section #fbj;,a ( ! ,=eign ,assi/ance   
,act ( #aifa 7#bb ,u4,s4,c4 #bcga72     
7iii7 section #dj ( ! ,arms ,export     
,control ,act 7#bb ,u4,s4,c4 #bghj72 or 
7iv7 any o!r provision ( law4  7,i7 ,any
 entity includ$ on any ( ! foll[+ li/s  
ma9ta9$ by ! ,dep>tm5t ( ,comm]ce3 7i7  
,! ,entity ,li/ set =? 9 ,supplem5t ,no4
 #d to "p #gdd ( ! ,export ,adm9i/ration
 ,regulations4  7ii7 ,! ,d5i$ ,p]sons   
,li/ z describ$ 9 section #gfd4c7;a77#b7
 ( ! ,export ,adm9i/ration ,regulations4
  7iii7 ,! ,unv]ifi$ ,li/ set =? 9      
,supplem5t ,no4 #f to "p #gdd ( !       
,export ,adm9i/ration ,regulations4     
7,j7 ,! ,milit>y ,end ,us] ,li/ set =? 9
 ,supplem5t ,no4 #g to "p #gdd ( !      
,export ,adm9i/ration ,regulations4     
7,k7 ,a =eign adv]s>y1 z t t]m is def9$ 
9 ?is subsection4  7,l7 ,an individual  
or entity includ$ on any sanctions li/  
adm9i/]$ by ! ,(fice ( ,=eign ,assets   
,control ( ! ,dep>tm5t ( ! ,treasury or 
( ! ,dep>tm5t ( ,ju/ice1 includ+ any    

successor li/4  7#f7 ,export            
adm9i/ration regulations ,! t]m ,export 
,adm9i/ration ,regulations means !      
regulations set =? 9 sub*apt] ,c ( *apt]
 ,,vii ( title #ae1 ,code ( ,f$]al      
,regulations4  7#g7 ,=eign adv]s>y ,!   
t]m =eign adv]s>y means ! foll[+3 7,a7  
,! ,democratic ,p's ,republic ( ,nor?   
,korea4  7,b7 ,! ,p's ,republic ( ,*9a4 
7,c7 ,! ,russian ,f$]ation4  7,d7 ,!    
,islamic ,republic ( ,iran4  7,e7 ,!    
,republic ( ,cuba4  7,f7 ,v5ezuelan     
politician ,nicols ,maduro 7! ,maduro   
,regime74  7#h7 ,national security      
indu/ry ,! t]m national security indu/ry
 means-- 7,a7 a milit>y-relat$ indu/ry2 
7,b7 semiconductor production2  7,c7    
rese>*+ or comm]cializ+ quantum comput+2
  7,d7 develop+ artificial intellig5ce  
products or s]vices2  7,e7 !            
biote*nology indu/ry2  7,f7 !           
cyb]security indu/ry2  7,g7 ! m9+1      
process+1 or ref9+ ( critical m9]als 7z 
su* t]m is def9$ 9 section #gjjb7;a7 ( !
 ,en]gy ,act ( #bjbj 7#cj ,u4,s4,c4     

#afjf7;a777 = use by a cov]$ entity2 or 
7,h7 o!r em]g+ te*nologies 7z t t]m is  
def9$ 9 section #fgja ( ! ,intellig5ce  
,au?orization ,act = ,fiscal ,ye> #bjbc 
7division ,f ( ,public ,law #aag-bfc2   
#ej ,u4,s4,c4 #cjbd note774  7#i7       
,secret>y ,! t]m ,secret>y means !      
,secret>y ( ,def5se4