Federal procurement requirements and preferences

(a) Amendment Chapter 47 of division C of subtitle I of title 41, United States Code, is amended by adding at the end the following new sections: 4715. Requirements for offerors (a) Labor The head of an executive agency may not award a contract unless the following requirements are met: (1) The offeror agrees for the duration of the contract to pay each employee of the offeror a wage of not less than the greater of— (A) $15, increased on an annual basis from such amount by the annual percentage increase, if any, in the median hourly wage of all employees as determined by the Bureau of Labor Statistics; or (B) the amount equal to the sum of— (i) the wage rate in effect under section 6(a)(1) of the Fair Labor Standards Act of 1938 (29 U.S.C. 206(a)(1)); and (ii) the amount that is 10 percent of such wage rate. (2) The offeror agrees to sign— (A) a neutrality agreement, effective during the period of the contract, with respect to efforts to form a labor organization (as defined in section 2 of the National Labor Relations Act (29 U.S.C. 152)); and (B) an agreement, effective during the period of the contract, not to hire employees to replace any employee engaged in any strike, picketing, or other concerted refusal to work or to close a business in response to such a strike, picketing, or other refusal to work. (3) The head of the executive agency, in consultation with the National Labor Relations Board, determines that the offeror has not been found in violation or settled a claim for a violation of the right of an employee to organize under a law, including regulations thereof, administered by the National Labor Relations Board, or of a State regulation determined relevant by the head of the executive agency, in consultation with the Secretary of Labor. (4) The offeror provides each employee at least 7 days of paid sick leave, 7 days of paid family and medical leave, and 7 days of paid vacation per year. (5) No assessable payment has been imposed, with respect to the offeror, under section 4980H of the Internal Revenue Code of 1986, with respect to any of the 12 months ending before the date on which the contract is awarded. (6) The offeror submits to the head of the executive agency confirmation of their compliance with standards promulgated pursuant to section 6 of the Occupational Safety and Health Act of 1970 (29 U.S.C. 655), and an actionable plan to address natural disasters and health crises, including policies and plans for the following: (A) The determination of essential employees. (B) Increased essential employee pay and quarantine pay. (C) Paid family and medical leave. (D) Temporary layoffs. (E) Whistleblower protections. (F) Emergencies in the case of rapidly changing circumstances, including the following: (i) An evacuation plan. (ii) Assessment and provision of personal protective equipment. (iii) Provision of medical services and first aid. (7) The offerer submits to the head of the executive agency an actionable plan to recruit and promote people of color, women, LGBTQ+ people, people with disabilities, and veterans. (8) In the case of a contract that is more than $100,000,000, the offeror submits a plan to meet the child care needs of their workforce. (9) In the case of a contract that exceeds $100,000, the offeror discloses publicly on the primary website of the offeror and submits to the Federal Acquisition Regulatory Council any political contribution, including to any Super PAC and 501(c)(4) organization. (b) Environmental sustainability The head of an executive agency may not award a contract unless the head of the executive agency, in consultation with the Administrator of the Environmental Protection Agency, determines that the offeror has not, within the previous 5 years— (1) paid a penalty that is greater than $100,000 for a violation of a law, including regulations thereof, administered by Environmental Protection Agency; or (2) settled a claim in connection with such a violation for an amount that is greater than $100,000. (c) Taxes The head of an executive agency may not award a contract unless the offeror— (1) maintains headquarters in the United States; (2) has Federal income tax liability which exceeds the offeror’s Federal income tax credits (other than such credits which constitute cash payments of tax by the offeror); (3) is neither an expatriated entity (as defined in subparagraph (A) of section 7874(a)(2) of the Internal Revenue Code of 1986) nor a surrogate foreign corporation (as defined in subparagraph (B) of such section); and (4) discloses financial performance and tax information on a country-by-country basis. (d) Private equity ownership In the case that a private equity firm holds a controlling interest in an offeror, the following requirements apply: (1) If the head of an executive agency determines, in consultation with the Secretary of Labor, the National Labor Relations Board, and the Administrator of the Environmental Protection Agency, that one company in which the private equity firm has a controlling interest violated subsection (a)(3) or (b), such head shall bar any company in which the private equity firm had a controlling interest at the time of violation from participation in a Federal contract for a period of 5 years. (2) The head of an executive agency may not award a contract unless— (A) the offeror discloses each parent company and controlling investor; (B) the offeror agrees for the duration of the contract to abstain from the following: (i) Dividend recapitalization. (ii) Payment of dividends that are in aggregate more than 10 percent of the amount of the debt load of the firm. (iii) Dividend payment while pensions are underfunded. (iv) Selling real estate assets and leasing them back. (v) The transfer of assets from the offering company to another company owned by a firm shareholder without the consent of the head of the agency. (3) The controlling private equity firm of the offeror agrees to abstain from charging management and monitoring fees to the offeror for the duration of the Federal contract. (e) Market sustainability (1) Prevention of market consolidation The head of an executive agency shall ensure that Federal contract funds do not facilitate market consolidation. (2) Time limit on acquisition of competitors The head of an executive agency may not award a contract unless— (A) the offeror signs an agreement that the offeror will not acquire a competitor or rival where the effect of such acquisition may be substantially to lessen competition, or to tend to create a monopoly, for one year following the close of a Federal contract; and (B) in the case of a private equity firm that holds a controlling interest in an offeror, the offeror signs an agreement that the offeror will not acquire a competitor or rival where the effect of such acquisition may be substantially to lessen competition, or to tend to create a monopoly, for two years following the close of a Federal contract. (3) Violation A violation of this subsection— (A) shall be determined by the head of the relevant executive agency, in consultation with the Federal Trade Commission and the Attorney General; and (B) shall bar the offeror from participation in a Federal contract for a period of 5 years. (f) Employee defined In this section, the term employee includes an independent contractor. 4716. Contract preferences (a) In general There shall be a contract preference for an offeror that meets any of the following qualifications: (1) The offeror does not have a pay ratio of more than 100 to 1. (2) The offeror does not outsource jobs outside of the United States. (3) If the offeror has a Board of Directors, the offeror has at least one seat on such Board of Directors for a representative elected by the employees. (4) The offeror contributes at least 5 percent of the payroll to a portable pension fund for the employees. (5) The offeror provides at least 2 percent of stock to their employees every year until the company is at least 20 percent owned by employees. (6) The offeror has a collective bargaining agreement with employees. (7) Women and people of color make up at least 40 percent of top executives and, if the offeror has a Board of Directors, of the members of such Board. (8) The offeror publicly discloses workforce gender and racial composition and pay gaps. (9) The offeror provides an affirmative action program (as defined in section 30.4 of title 29, Code of Federal Regulations, or a successor regulation) to ensure equal opportunity in apprenticeships. (10) The offeror documents that they have assisted each individual with an intellectual or developmental disability and other individual with a significant disability employed by the employer under a certificate under section 14(c) of the Fair Labor Standards Act (29 U.S.C. 214(c)) to transition to opportunities for competitive integrated employment and that such individuals are employed in such opportunities for not less than 20 hours per week, on average. (11) The offeror agrees to forgo all stock buybacks for a period of 5 years beginning on the date on which the contract begins. (12) The offeror submits a plan to meet the childcare needs of their workforce. (13) The offeror submits a climate impact assessment of the operations of the offeror and has implemented methods for reducing negative climate impacts. (14) The offeror, in a clear and conspicuous manner, labels any content generated with artificial intelligence. (15) The offeror has internal controls to ensure that any artificial intelligence tool or product the offeror develops is not used, either by employees or external users, to generate content that spreads misinformation about a Federal, State, or local election, or a candidate in such election. (16) The offeror has internal controls to ensure that any artificial intelligence tool or product the offeror develops is not used, either by employees or external users, to generate sexual material about an individual without their express affirmative consent. (17) The offeror has internal controls to ensure that any artificial intelligence tool or product the offeror develops is not used, either by the offeror or another company using the tool or product of the offeror, for workplace surveillance of employees. (18) The offeror has ensured that any artificial intelligence tool or product developed or used by the offeror is in compliance with the National Institute for Standards and Technology Artificial Intelligence Risk Management Framework. (b) Application of preference The head of an executive agency shall apply subsection (a) by providing greater preference to an offeror that meets a greater number of the qualifications under paragraphs (1) through (18) of such subsection. (c) Definitions For the purposes of this section— (1) the terms developmental disability and integrated have the meaning given the terms in section 102 of the Developmental Disabilities Assistance and Bill of Rights Act of 2000 (42 U.S.C. 15002); (2) the term employee includes an independent contractor; and (3) the term pay ratio means the ratio described in section 229.402(u)(1)(iii) of title 17, Code of Federal Regulations (or any successor regulation), except that if the highest compensated employee of the corporation is not the principal executive officer, the ratio shall be determined based on the compensation of such highest compensated employee.. (b) Technical and conforming amendment The table of sections for chapter 47 of division C of subtitle I of title 41, United States Code, is amended by adding at the end the following new items: 4715. Requirements for offerors. 4716. Contract preferences.. (c) Applicability The amendments made by this section shall apply to any Federal contract entered into on or after the date of the enactment of this Act.