FIND Act
- Sponsor
- Rep. Bergman, Jack [R-MI-1]
- Committees
- Oversight and Government Reform Committee (primary)
- Last action
- Jan 3, 2025
Bottom line
The bill aims to prevent federal contractors from implementing policies that disadvantage firearm and ammunition businesses, ensuring their access to federal contracts by mandating non-discrimination certifications and imposing strict penalties for non-compliance.
What it actually does
This bill amends title 41, United States Code, to prohibit federal executive agencies from entering into contracts for goods or services with any entity that discriminates against the firearm and ammunition industry. It requires prime contractors to certify non-discrimination and extends this requirement to significant first-tier subcontracts, with severe penalties including contract termination and debarment for violations. The bill provides a detailed definition of what constitutes 'discrimination' in this context.
Proponents argue
Supporters argue this bill protects Second Amendment-related industries from politically motivated discrimination by financial institutions and other businesses, ensuring fair access to the federal marketplace and preventing 'woke capitalism' from impacting essential sectors. They contend it levels the playing field for lawful businesses that might otherwise be unfairly excluded from federal procurement opportunities.
Opponents contend
Opponents might contend that this bill infringes on the private sector's ability to manage its own risk and make business decisions, potentially forcing federal agencies to contract with entities whose business practices conflict with their values or risk assessments. They may also argue it could lead to increased litigation and administrative burdens for both government and contractors.
The bill is concise and can be read quickly, but understanding the full implications of its definitions and enforcement mechanisms requires careful consideration and analysis of its potential impacts on federal procurement and private business practices.
Section 2(a), amending 41 U.S.C. 4715(a)(1)
Certification for Prime Contractors
This provision requires federal executive agencies to include a clause in all contracts for goods or services. This clause mandates that the prime contractor certify they do not currently have, nor will they adopt during the contract term, any policy, practice, guidance, or directive that discriminates against a firearm entity or firearm trade association.
Supporters argue
Supporters argue this provision ensures that businesses associated with the firearm industry are not unfairly excluded from participating in the federal marketplace due to ideological reasons, promoting a level playing field and preventing politically motivated boycotts.
Critics contend
Critics might argue that this provision could force federal agencies to contract with entities that have business practices they deem undesirable, or that it could be seen as government overreach into private business decisions and risk management.
Tradeoffs
This provision balances the government's interest in preventing discrimination against specific lawful industries with the private sector's autonomy in business risk assessment and policy setting.
Section 2(a), amending 41 U.S.C. 4715(a)(2)
Subcontractor Certification and Anti-Structuring Rule
This provision requires prime contractors to prohibit awarding first-tier subcontracts with a value greater than 10% of the total prime contract to entities that fail to provide a similar written non-discrimination certification. It also explicitly prohibits structuring subcontract tiers in a manner designed to avoid this 10% threshold for lower-tier subcontractors.
Section 2(a), amending 41 U.S.C. 4715(a)(3)
Penalties for Violation
This section specifies that if a prime contractor violates the non-discrimination clause required by the bill, their prime contract 'shall be terminated for default.' Additionally, a suspension or debarment proceeding will be initiated for the contractor on the basis of that violation, potentially barring them from future federal contracts.
Section 2(a), amending 41 U.S.C. 4715(c)(1)
Definition of 'Discriminate'
The bill broadly defines 'discriminate' to include making judgments based on 'partial criteria' or 'category-based assessment' rather than case-by-case analysis or empirical data. It also covers refusing, denying, canceling, or limiting services based on criteria other than those free from favoritism/prejudice against firearm entities, credit history/financial risk, or noncompliance with law. Furthermore, it includes limiting operations not required by federal, state, or local law or regulation.
Section 2(a), amending 41 U.S.C. 4715(c)(2)
Definition of 'Firearm Entity'
This provision broadly defines 'firearm entity' to include any person licensed to import, manufacture, or deal in firearms; sellers of ammunition; manufacturers, importers, or dealers of secure gun storage or safety devices; and manufacturers, importers, or dealers of component parts or accessories of firearms or ammunition. This ensures a wide range of businesses are covered.
The non-discrimination requirements established by the bill do not apply to sole-source contracts for the procurement of goods or services.
Section 2(a), amending 41 U.S.C. 4715(b)
Why it matters:This is standard legislative practice to include exceptions for practical reasons. In this case, it likely acknowledges that for sole-source contracts, by definition, there are no alternative providers, making non-discrimination clauses less relevant or impractical to enforce without jeopardizing critical government functions.
Case for: Proponents might argue this exception is necessary to ensure government operational continuity, as sole-source contracts are typically awarded when only one contractor can fulfill a unique or urgent requirement. Applying non-discrimination rules here could impede essential procurement.
Case against: Critics could argue that this creates a loophole, allowing federal agencies to bypass the non-discrimination requirements if they can justify a sole-source procurement, potentially undermining the bill's intent to protect the firearm industry in certain circumstances.
Estimated impact: Potentially significant, as sole-source contracts can represent substantial federal spending across various agencies, though their specific value and frequency vary widely by agency and need. It limits the scope of protection for the firearm industry in these specific procurement scenarios.
The new section 4715 of title 41, United States Code, which contains all the non-discrimination provisions, will apply only to contracts awarded on or after the date of the enactment of this Act.
Section 2(b)
Why it matters:This is standard legislative practice to specify the effective date of new statutory provisions, ensuring clarity and avoiding retroactive application that could disrupt existing legal agreements or expectations.
Case for: Proponents would state this ensures a clear and fair transition, applying the new rules to future contracts without retroactively disrupting existing agreements or imposing unforeseen burdens on current contracts.
Case against: No specific opposition is typically raised against the application date itself, but rather against the broader policy it enables. Critics might argue that a delayed application could allow discriminatory practices to continue for longer under existing contracts.
Estimated impact: Ensures all new federal contracts awarded after enactment are subject to the FIND Act, impacting the entire future federal procurement landscape and requiring immediate compliance adjustments from that date forward.