S.695, Defense Production Act Amendments of 1977

Proposed legislation would set forth (1) a code of conduct for contracting officers, (2) reporting requirements for former Federal contracting officers, and (3) reporting requirements for current Federal employees of certain grades who were formerly employed by or consultants to Government contractors. The bill would establish a Conflict of Interest Review Board for enforcement. GAO agreed with the objective of assuring proper conduct of Government business, but thought the enforcement approach was too piecemeal. As an alternative, it suggested an office of ethics to be established in the executive branch with administrative, advisory, and enforcement responsibilities. The bill, S.555, under Senate consideration, would provide for establishment of an Office of Government Ethics within the Civil Service Commission which would be suitable for including requirements of S.695. A proposed amendment to S.695, which would broaden coverage of regulations for dealing with organizational conflicts of interest, reflects recommendations formerly made by GAO. Consideration was suggested about another provision in the amendment which would exclude prime contracts from inclusion of a threshold amount.