1. Short title

This Act may be cited as the "No Cash for Incompetent and Malicious Contractors Act".

2. Debarment of contractors who improperly disclose personally identifiable information

(a) In general - Chapter 47 of title 41, United States Code, is amended by adding at the end the following:

4715. Debarment of contractors who improperly disclose personally identifiable information

(a) Debarment for legal finding of improper disclosure -

(1) In general - The head of an executive agency shall debar a contractor from eligibility for Federal contracts for a conviction or civil judgment against the contractor, or an employee of the contractor, for non-consensual disclosure of personally identifiable information of a client of the contractor, including with respect to the client—

(A) the social security number;

(B) return or return information, as defined in paragraphs (1) and (2) of section 6103(b) of title 26;

(C) individually identifiable health information, as defined in section 160.103 of title 45, Code of Federal Regulations, or any successor regulation; or

(D) any trade secret, as defined in section 1839 of title 18.

(2) Length of debarment - A debarment under paragraph (1) shall be for a period of not less than one year and not more than 5 years, dependent on the severity of the conduct.

(3) Procedure - A debarment under paragraph (1) shall be carried out in accordance with the procedural requirements of section 9.406–3 of the Federal Acquisition Regulation, or any successor regulation.

(b) Suspension pending investigation of improper disclosure -

(1) In general - The head of an executive agency shall suspend a contractor from eligibility for Federal contracts if the contractor, or an employee of the contractor, is charged with commission of a criminal offense involving disclosure of personally identifiable information of a client of the contractor, including the information listed in subparagraphs (A) through (D) of subsection (a)(1).

(2) Length of suspension - A suspension under paragraph (1) shall be for the period prescribed in section 9.407–4 of the Federal Acquisition Regulation, or any successor regulation.

(3) Procedure - A suspension under paragraph (1) shall be carried out in accordance with the procedural requirements of section 9.407–3 of the Federal Acquisition Regulation, or any successor regulation.

(b) Clerical amendment - The table of contents at the beginning of chapter 47 of title 41, United States Code, is amended by adding at the end the following:

Sec. 4715. Debarment of contractors who improperly disclose personally identifiable information.