HENRY A. WAXMAN, CALIFORNIA,

CHAIRMAN

TOM LANTOS, CALIFORNIA

EDOLPHUS TOWNS. NEW YORK

PAUL E. KANJORSKI, PENNSYLVANIA

CAROLYN B. MALONEY, NEWYORK

ELIJAH E. CUMMINGS, MARYLAND

DENNIS J. KUCINICH, OHIO

DANNY K. DAVIS. ILLINOIS

WM, LACY CLAY. MISSOURI

DIANE E. WATSON, CALIFORNIA

STEPHEN F. LYNCH, MASSACHUSETTS

BRIAN HIGGINS, NEW YORK

JOHN A. YARMUTH. KÉNÎUCKY

BRUCE L, BRALFY. IOWA

ELEANOR HOLMES NORTON,

DISTRICT OF COLUMBIA

BETTY McCOLLUM. MINNESOTA

JIM COOPER, TENNESSEE

CHRIS VAN HOLLEN, MAFYTÁND

PAULW. HODES, NEW HAMPSH¡RE

CHRISTOPHER S. MURPHY, CONNECTICUT

JOHN P. SARBANÊS. MARYLAND

PE’ÍER WELCH, VÊRMONI

IOM DAVIS. VIRGINIA.

RANKING MINORTTY MEI\4BER

DAN BURTON, INDIANA

CHRISTOPHER SHAYS. CONNECTICUT

JOHN M. MoHUGH, NEW YORK

JOHN L. MICA, FLORIDA

MARK E. SOUDER, INDIANA

TODD RUSSELL PLATTS, PENNSYLVANIA

CHRIS CANNON, UTAH

JOHN J. DUNCAN. JF., IENNESSEE

MICHAEL R. TURNER, OHIO

DARRELL E. ISSA, CALIFORNIA

ONE HUNDRED TENTH CONGRESS

 

COMMITTEE ON OVERSIGHT AND GOVERNMENT REFORM .

March 20,2008

PATRICK T. MCHENRY, NORTH CAROLINA

VIRGINIA FOXX, NORTH CAROLINA

BRIAN P. BILBRAY, CALIFORNIA

BILL SALI, IDAHO

JIM JORDAN. OH¡O

The Honorable Michael Mukasev

Attomey General

Department of Justice

950 Pennsylvania Avenue NV/

V/ashinglon, DC 20530

 

 

Dear Mr. Mukasey:

 

 

We are concerned about a proposed change to federal contracting rules that would exempt overseas contracts from a requirement that the contractor detect and prevent fraud and report it to the government. At a time when the United States is engaged in wars in Iraq and Afghanistan, conducting extensive redevelopment programs in both countries, and employing the services of an unprecedented number of private contractors, preventing fraud by contractors overseas should be a high priority. Instead, the exemption for contracts to be performed overseas appears to have been inserted in the rule late in the process and against the wishes of the Department of Justice, which raises serious questions as to why and how such a policy was developed.

 

On May 23,2007, the Department of Justice (DOJ) requested that the Federal Acquisition Regulation be amended to “require contractors to establish and maintain internal controls to detect and prevent fraud in their contracts, and that they notify contracting officers without delay whenever they become aware of a contract overpayment or fraud, rather than wait for its discovery by the govemment.” DOJ believed such a rule was necessary because few government contractors voluntarily disclose suspected instances of fraud. DOJ proposed specific changes to the Federal Acquisition Regulation.’

 

 

In response, on November 14,2007, the Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council published a proposed rule on “Contractor Compliance Program and Integrity Reporting.”‘ This rule requires contractors to have a code of ethics and

t Letter from Assistant Attorney General Alice Fisher to Administrator for Federal Procurement Policy Paul Denett (May 23,2007).

 

 

2 72Fed. Reg. 64019, FAR Case2007-006 (Nov. 14,2007).

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