Sponsor
Robert P. Bresnahan
Representative · R-PA
Representative · R-PA
The bill strengthens national-security protections and procurement integrity by limiting conflicted foreign ties and increasing enforcement and transparency, but it does so at the cost of reduced contractor access and competition, higher compliance and litigation burdens, potential job and revenue losses, and risks that provisions may be underfunded or slow critical procurements.
Federal agencies, taxpayers, and the public: the bill reduces the risk that U.S. government contracts and consulting work will directly bolster foreign adversaries or risky foreign actors by barring or limiting contracts with firms tied to those entities.
Agencies, contractors, and taxpayers: the bill strengthens procurement integrity by clarifying covered-entity definitions, restricting conflicted consulting relationships, and enabling faster contract terminations for false statements or conflicted performance.
Taxpayers and the government: the bill increases financial protections against fraud by making false disclosures about foreign contracts actionable (including treble damages under the False Claims Act) and allowing agencies to end tainted contracts quickly.
U.S. consulting firms, workers, and suppliers: many firms may lose foreign clients or be excluded from federal consulting work, reducing revenues and potentially costing jobs—particularly among mid-size and multinational consulting firms and affected NAICS-code workers.
Federal programs and taxpayers: stricter exclusion rules and limits on conflicted contractors could shrink the pool of qualified vendors for defense and other federal projects, slowing procurements, raising contract prices, and risking gaps in critical capabilities.
Contractors and agencies: the bill imposes new certification, disclosure, reporting, suspension/debarment, and False Claims Act liabilities that will increase compliance costs, administrative burden, and the risk of litigation for both firms and procurement offices.
Based on analysis of 6 sections of legislative text.
Bars consulting firms that advise specified foreign entities from receiving federal consulting contracts unless they certify no such relationships; allows narrow short-term waivers and creates enforcement and FCA remedies.
Official title: To prohibit conflicts of interest among consulting firms that simultaneously contract with China or other covered foreign entities and the United States Government, and for other purposes.
Introduced April 24, 2025 by Robert P. Bresnahan · Last progress April 24, 2025
Bars firms that provide consulting services to certain foreign governments, affiliates, or entities (including many PRC and Russian-linked entities and terrorism-supporting governments) from holding federal consulting contracts unless they certify they have no such foreign consulting relationships. Agencies must update the Federal Acquisition Regulation within one year, may grant narrowly tailored short-term waivers with reporting and transparency conditions, and must terminate or pursue False Claims Act and suspension/debarment remedies for false certifications. The Act defines covered foreign entities, consulting services, waiver rules, required disclosures, and prohibits new appropriations to implement the law.