Department of Defense Conflict of Interest Act of 1985

Department of Defense Conflict of Interest Act of 1985 - Prohibits a former officer or employee of the Department of Defense (DOD) or former retired member of the uniformed services from accepting compensation from a Government contractor for two years following the individual's separation from Government service if, during the two years preceding separation from service, such individual had significant responsibilities for a procurement function with respect to that contractor. Specifies penalties for violations of this prohibition. Requires defense contractors to include in defense contracts a provision stating that the contractor agrees not to compensate an individual who falls under such category. Specifies penalties for a contractor's violation of this requirement. Requires contractors subject to such a contract term to issue an annual report listing specified information concerning individuals who had significant responsibilities for a procurement function, left the Government within the previous two years, and was compensated by that contractor after leaving Government service. Requires a copy of each such report to be sent to the Inspector General of the DOD. Requires the Inspector General to assess such reports and report any possible violations to the Attorney General. Provides penalties for those contractors failing to file such reports. Requires the Director of the Office of Government Ethics to have access to such reports and to submit an annual report to the Congress concerning such reports. Excludes from application of these sections those contracts for an amount less than $100,000.

Requires the Secretary of Defense, not later than 180 days after enactment of this Act, to delineate the procurement functions covered by these sections and provide a list of such functions to the Congress.

Allows an individual who is offered compensation which might be in violation of this Act to apply to the Director of the Office of Government Ethics for advice on the applicability of this Act to such compensation. Requires such application to be made jointly by the individual and the contractor proposing the compensation. Outlines information to be included in such application for advice. Requires the Director to publish notice of the application in the Federal Register.