Contractors would face federal contract bans over client information disclosures

Executive agencies would bar contractors from federal contracts after a conviction or civil judgment. Findings against a contractor or an employee would count. Covered information includes tax records, health records, and trade secrets. The finding must involve sharing a client’s identifying information without consent. Agencies would follow the federal contracting procedures named in the bill. The ban would last at least one year and no more than five years, depending on how serious the conduct was.

Executive agencies would suspend contractors from eligibility for federal contracts when criminal charges are filed. Charges against either the contractor or an employee would trigger the contractor’s suspension. The criminal charge must involve disclosure of a client’s personally identifying information. Agencies would follow the federal contracting procedures named in the bill. The suspension would last for the period set by the federal contracting rule named in the bill.