Prohibits federal awards to special government employees and their related parties, excluding advisory committee members, to prevent potential profiteering.
Kathy Castor
Representative
FL-14
The "Employee Limits ON Profiteering Act" prohibits the federal government from granting federal awards, including contracts and grants, to special government employees and their related third parties, such as spouses, children, or organizations they lead. This restriction excludes advisory committee members. The Federal Acquisition Regulation must be revised within 60 days to comply with the Act's provisions. "Special Government employee" is defined as in 18 U.S.C. 202.
New Bill Blocks Federal Awards for Temporary Gov Experts and Associates; Rule Change Mandated Within 60 Days
The "Employee Limits ON Profiteering Act" proposes a straightforward change: blocking federal contracts, grants, and similar awards from going to certain temporary government workers, known as "special Government employees" (SGEs), and their close connections. SGEs are typically experts brought in from outside government for short-term assignments, defined under 18 U.S.C. 202 as generally working 130 days or less per year. The bill aims to prevent these individuals from potentially leveraging their temporary government roles for personal or professional financial gain through federal funding.
Drawing the Line: Who's Restricted?
This legislation casts a net not just over the SGEs themselves, but also over what it terms "covered third parties." This includes an SGE's spouse, child, general business partner, or any organization where the SGE holds a significant position like officer, director, or employee. So, if an expert is temporarily advising an agency, neither they nor their spouse's company could receive a federal grant or contract under this rule. The goal is clear: reduce potential conflicts of interest where temporary government service might lead to preferential treatment in awarding federal dollars. There's a specific carve-out, however: individuals serving on official advisory committees (as defined in 5 U.S.C. 1001) are exempt from this restriction.
Updating the Rulebook: Making it Official
The bill doesn't just state the prohibition; it requires action. Within 60 days of becoming law, the Federal Acquisition Regulation (FAR)—the massive rulebook governing how federal agencies buy goods and services—must be updated to reflect this new restriction. This ensures the ban is incorporated into the standard operating procedures for federal procurement. While the intent is to tighten ethics rules, the practical application hinges on how broadly terms like "federal award" and "covered third party" are interpreted and applied across different agencies, which could present implementation challenges.