AUTHORITY FOR SECRETARY OF DEFENSE TO REDUCE OR DENY AWARD FEES TO COMPANIES FOUND TO JEOPARDIZE HEALTH OR SAFETY OF GOVERNMENT PERSONNEL.

SEC. 823. AUTHORITY FOR SECRETARY OF DEFENSE TO REDUCE OR DENY AWARD FEES TO COMPANIES FOUND TO JEOPARDIZE HEALTH OR SAFETY OF GOVERNMENT PERSONNEL.(a) Authority To Reduce or Deny Award Fees.—Not later than 180 days after the date of the enactment of this Act, the Secretary of Defense shall revise the guidance issued pursuant to section 814 of the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109–364; 129 Stat. 2321) to ensure that all covered contracts using award fees—(1) provide for the consideration of any incident described in subsection (b) in evaluations of contractor performance for the relevant award fee period; and123 STAT. 2413(2) authorize the Secretary to reduce or deny award fees for the relevant award fee period, or to recover all or part of award fees previously paid for such period, on the basis of the negative impact of such incident on contractor performance.(b) Covered Incidents.—An incident referred to in subsection (a) is any incident in which the contractor—(1) has been determined, through a criminal, civil, or administrative proceeding that results in a disposition listed in subsection (c), in the performance of a covered contract to have caused serious bodily injury or death to any civilian or military personnel of the Government through gross negligence or with reckless disregard for the safety of such personnel; or(2) has been determined, through a criminal, civil, or administrative proceeding that results in a disposition listed in subsection (c), to be liable for actions of a subcontractor of the contractor that caused serious bodily injury or death to any civilian or military personnel of the Government, through gross negligence or with reckless disregard for the safety of such personnel.(c) List of Dispositions in Criminal, Civil, or Administrative Proceedings.—For purposes of subsection (a), the dispositions listed in this subsection are as follows:(1) In a criminal proceeding, a conviction.(2) In a civil proceeding, a finding of fault and liability that results in the payment of a monetary fine, penalty, reimbursement, restitution, or damages of $5,000 or more.(3) In an administrative proceeding, a finding of fault and liability that results in—(A) the payment of a monetary fine or penalty of $5,000 or more; or(B) the payment of a reimbursement, restitution, or damages in excess of $100,000.(4) To the maximum extent practicable and consistent with applicable laws and regulations, in a criminal, civil, or administrative proceeding, a disposition of the matter by consent or compromise with an acknowledgment of fault by the person if the proceeding could have led to any of the outcomes specified in paragraph (1), (2), or (3).(d) Definitions.—In this section:(1) The term “defense contractor” means a company awarded a covered contract.(2) The term “covered contract” means a contract awarded by the Department of Defense for the procurement of goods or services.(3) The term “serious bodily injury” means a grievous physical harm that results in a permanent disability.(e) Effective Date.—This section shall apply with respect to contracts entered into after the date occurring 180 days after the date of the enactment of this Act.123 STAT. 2414