Defense Procurement Conflict of Interest Act

(Reported to House from the Committee on the Judiciary with amendment, H. Rept. 99-397 (Part II))

Defense Procurement Conflict of Interest Act - 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 participated personally and substantially in a procurement function with respect to that Government contractor while serving in certain capacities as specified under this Act. Specifies penalties for violation of this prohibition. Requires the Secretary of Defense to provide notice of such provisions to officers and employees leaving DOD service who served in a position that involved personal and substantial participation in a procurement function.

Requires the Secretary, no later than 180 days after enactment of this Act, to prescribe and publish in the Federal Register the procurement positions covered by these provisions. Outlines further information concerning such procurement positions. Requires such information to be revised at least once each year. Waives the application of these provisions with respect to certain specified individuals, but requires the Secretary to report any such exemptions to specified congressional committees.

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 the acceptance of such compensation.

Requires a contractor who in any fiscal year contracts with DOD for the procurement of goods and services totaling $1,000,000 or more to include in each contract with DOD in the succeeding fiscal year a provision stating that the contractor agrees not to compensate individuals previously described. Outlines penalties to contractors for violation of such provision.

Requires contractors subject to such contract terms to issue on April 1 annually a report listing specified information concerning individuals who had participated personally and substantially in a procurement function during their last two years with DOD, and were provided compensation by that contractor, if such compensation was provided within two years after such officer or employee left the DOD. Outlines information to be included in such report. Specifies penalties for contractors failing to file such reports. Requires the Secretary to review such reports any report and possible violations to the Attorney General. Requires the Director of the Office of Government Ethics to have access to such reports and to submit an annual report to the Congress on October 1 of each year beginning with October 1, 1987, concerning such reports. Excludes from application of these provisions those contracts for an amount of less than $100,000.

Repeals specified provisions of the Defense Procurement Improvement Act of 1985 concerning procurement personnel matters.

Provides that this Act does not: (1) preclude the continuation of employment or compensation for employment that begins before the effective date of this Act; and (2) apply to an individual whose service with DOD terminates before the effective date of this Act.