House Bill Would Ban Federal Contractors From Working in Russia

The “Federal Contracting for Peace and Security Act” would prohibit federal contractors from doing any business in Russia.

Source : Pixabay

April 12, 2022

Author : Alex Bustillos

The House Oversight and Reform Committee passed a bill on April 6 that would ban federal contractors from doing business in Russia and rip up any contracts if they are caught flouting the rule.

The bill was introduced by Representative Carolyn B. Maloney (D-NY), who chairs the House Oversight and Reform Committee.

According to JD Supra, the bill would ban the federal government from entering into a contract, extending a contract, or procuring any product from a company that has business dealings inside the Russian Federation.

A window of 60 days would be provided for contractors to sever their ties to the country.

After the window, companies that continue to do business in Russia would be given 15 days with written notice, however a 30-day extension would be allowed if the contractor shows that it is working to end its operations. Another 30 days would be allowed if the contractor takes “reasonable steps” to end its work in Russia.

Forms of business that would be prohibited under the bill are broadly defined: “commerce in any form, including acquiring, developing, selling, leasing, or operating equipment, facilities, personnel, products, services, personal property, real property, or any other apparatus of business or commerce.”

However, exemptions exist for humanitarian work, work that is meant to benefit Ukraine, or if the head of the agency procuring from a contractor still working in Russia certifies to the President of the United States that a waiver is in the national or public interest of the United States.

Category : Federal Government International Procurement

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