The General Services Administration, NASA and the Defense Department have proposed a regulation to block vendors that use internal agreements to prevent their employees or subcontractors from reporting wasteful spending, fraud and abuse to federal customers.
The three agencies said Friday in a Federal Register notice their proposed rule would amend the Federal Acquisition Regulation in order to implement section 743 of the Consolidated and Further Continuing Appropriations Act.
The policy forbids agencies from awarding contracts, grant funds or cooperative agreements to companies that put the internal confidentiality statement in employee or subcontractor agreements.
GSA, NASA and DoD proposed to include the clause in solicitations for all federal contracts, except ones that cover services to be provided by an individual who is not a contractor employee or a subcontractor.
Comments to the proposed rule are due March 22.