Employee Limits ON Profiteering Act

Summary

Prohibits the federal government from awarding contracts, grants, cooperative agreements, other contract-like instruments, or other Federal awards to special Government employees (SGEs) and certain close associates (spouses, children, general partners, or organizations where the SGE holds a leadership or employment role). An exception allows awards when the SGE only serves as a member of an advisory committee. Agencies must update the Federal Acquisition Regulation (FAR) to implement this change within 60 days of enactment.

• Bars federal awards to special Government employees (SGEs) and certain close associates or organizations tied to SGEs.
• Covered third parties include spouses, children, general partners, and organizations where the SGE is an officer, director, trustee, general partner, or employee.
• Exception: awards allowed when the SGE serves only as a member of an advisory committee.
• Requires the Federal Acquisition Regulation (FAR) to be revised to implement the prohibition within 60 days of enactment.
• Applies to a broad set of federal award instruments, including contracts, grants, cooperative agreements, and other contract-like instruments.
• Does not create new spending, appropriate funds, or impose requirements on state or local governments.
• Shifts procurement compliance work to federal acquisition officials and may require new pre-award screening procedures.
• Could reduce the pool of outside experts eligible for awards or redirect participation into advisory-only roles.
• Raises potential implementation questions about defining covered relationships and organizational ties.
• Enforcement would operate through award decision processes and FAR compliance rather than creating new penalties.