This bill prohibits federal agencies from awarding government contracts to "inverted domestic corporations," which are foreign-incorporated companies that have acquired substantially all the assets of American businesses since May 2014. The prohibition applies to both civilian agency contracts and Department of Defense contracts valued over ten million dollars, and it extends to subcontractors that would represent more than 10 percent of a prime contract's value. Companies can escape the restriction if they maintain substantial business activities in their country of incorporation or if they meet a "significant domestic business activities" threshold, such as having at least 25 percent of their employees, assets, or income based in the United States. Federal agency heads may waive the prohibition only for national security reasons or in limited circumstances involving health benefit or public health programs, and they must notify Congress within 14 days of issuing any waiver. The restrictions apply to new contracts and task orders issued after the bill's enactment, with the Treasury Department responsible for issuing detailed regulations to determine when a company's management and control is "primarily within the United States."
Take Action
Your position
Add a comment
to comment on this bill.
Annotate the text
Highlight any passage on the Summary or Full Text tab to attach a note. Annotations appear on the Annotations tab.