H.R. 6689 — ETHICAL Procurement Act

This section prohibits the Secretary of Defense from entering into, renewing, or extending any contract or agreement for goods or services produced or provided by an entity if (1) an officer, director, partner, or majority owner of the entity is a presidentially appointed, Senate-confirmed official; holds a Schedule C position; is a special Government employee (i.e., as defined in 18 U.S.C. §202, generally a temporary or part-time federal officer or employee serving no more than 130 days in any 365-day period); or is in the Senior Executive Service; or (2) an immediate family member (i.e., parent, child, sibling, spouse, or domestic partner) of the President, such an official, or a special Government employee is an officer, director, or partner of the entity or holds a significant ownership interest in it or would derive a substantial financial benefit from the contract, as determined by the Secretary. The section directs the Secretary to issue implementing regulations, including definitions, thresholds, and identification procedures, within 30 days of enactment.