Employee Limits ON Profiteering Act
The Employee Limits ON Profiteering Act would bar the Federal Government from entering into or making federal awards (such as contracts, grants, cooperative agreements, or similar contract-like instruments, including those under other transaction authority) with special Government employees (SGEs) or with “covered third parties” connected to SGEs. The only allowed exception is for SGEs who serve solely as members of advisory committees; in that case the prohibition would not apply to them. The bill also requires the Federal Acquisition Regulation (FAR) to be revised within 60 days of enactment to reflect these rules. Key definitions clarify who counts as an SGE, what constitutes a “covered third party,” and what counts as a “federal award.” In short, the bill aims to tighten potential conflicts of interest by limiting federal funding or contracts tied to SGEs or their close associates, while still permitting SGEs who only serve on advisory committees to receive federal awards.
Key Points
- 1Prohibition on federal awards: The government may not enter into or make a federal award to a special Government employee or to a covered third party, with limited exceptions.
- 2Advisory-committee exception: An SGE who only serves as a member of an advisory committee is not subject to the prohibition.
- 3FAR revision required: The Federal Acquisition Regulation must be revised within 60 days after enactment to implement these changes.
- 4Broad definition of federal awards: Includes contracts, grants, cooperative agreements, and other contract-like instruments, including agreements entered under other transaction authority.
- 5Broad definitions:
- 6- Advisory committee is defined by reference to its meaning in section 1001 of Title 5 (Advisory Committee Act context).
- 7- Covered third party includes an SGE’s spouse, child, general partner, or an organization in which the SGE serves as officer, director, trustee, general partner, or employee.
- 8- Special Government Employee is defined as in 18 U.S.C. § 202 (the standard statutory definition used for short-term, outside-employment government appointees).