§ 2408. Prohibition on persons convicted of defense-contract related felonies and related criminal penalty on defense contractors
(a)
Prohibition.—
(1)
An individual who is convicted of fraud or any other felony arising out of a contract with the Department of Defense shall be prohibited from each of the following:
(A)
Working in a management or supervisory capacity on any defense contract or any first tier subcontract of a defense contract.
(B)
Serving on the board of directors of any defense contractor or any subcontractor awarded a contract directly by a defense contractor.
(2)
Except as provided in paragraph (3), the prohibition in paragraph (1) shall apply for a period, as determined by the Secretary of Defense, of not less than five years after the date of the conviction.
(3)
The prohibition in paragraph (1) may apply with respect to an individual for a period of less than five years if the Secretary determines that the five-year period should be waived in the interests of national security.
(4)
The prohibition in paragraph (1) does not apply with respect to the following:
(A)
A contract referred to in subparagraph (A), (B), (C), or (D) of such paragraph that is not greater than the simplified acquisition threshold (as defined in section
134 of title
41).
(b)
Criminal Penalty.—
A defense contractor or subcontractor shall be subject to a criminal penalty of not more than $500,000 if such contractor or subcontractor is convicted of knowingly—
(c)
Single Point of Contact for Information.—
(1)
The Attorney General shall ensure that a single point of contact is established to enable a defense contractor or subcontractor to promptly obtain information regarding whether a person that the contractor or subcontractor proposes to use for an activity covered by paragraph (1) of subsection (a) is under a prohibition under that subsection.