H.R. 2989 — Time to Choose Act of 2025

This section states congressional findings on conflicts of interest involving consulting firms that contract with the Department of Defense and other U.S. government agencies while simultaneously providing services to certain foreign governments and their proxies or affiliates. The findings declare that such services may support foreign efforts to undermine U.S. economic and national security; that this arrangement constitutes a conflict of interest; and that firms should be required to choose between serving those foreign governments or contracting with the U.S. government.

This section directs the Federal Acquisition Regulatory Council, not later than one year after enactment, to amend the Federal Acquisition Regulation to (1) require any entity offering consulting services—including under North American Industry Classification System (NAICS) Industry Group code 5416 (i.e., management, scientific, and technical consulting services)—to an executive agency to certify, prior to contract award, that neither it nor any subsidiaries or affiliates hold a consulting contract with covered foreign entities; and (2) prohibit award of such contracts to entities failing that certification. It authorizes the head of an executive agency to waive the prohibition on a case-by-case basis if determined to be in the national security interests of the United States (in consultation with the Secretary of Defense and Director of National Intelligence), no conflict-free alternative exists, the Office of Management and Budget is notified at least five days prior, appropriate congressional committees are notified within 30 days (with briefing offered and classified annex if needed), and a list of relevant covered foreign entities is published on the agency's website (unless national security precludes it, with required approvals). Waivers are limited to 365 days (with one extension of up to 180 days, subject to approvals and congressional notification) and one per entity across all agencies at a time; notifications must detail the contractor's structure and foreign ties, covered foreign entities and contract history, work performed (including dollar value, duration, personnel, subject matter, and potential military/intelligence applications), agency justification, and a management oversight plan.

This section establishes penalties for consulting firms described in section 3(a)(1) that knowingly submit false certifications or information on or after the date the Federal Acquisition Regulatory Council amends the Federal Acquisition Regulation pursuant to section 3. It (1) requires executive agency heads to terminate such contracts and consider suspending or debarring the firms under Federal Acquisition Regulation subpart 9.4, and (2) subjects such firms to False Claims Act penalties—including liability for three times the amount of damages sustained by the United States—for knowingly hiding or misrepresenting contracts with covered foreign entities.

This section defines terms for purposes of the Act, including (1) appropriate congressional committees as the Senate Committee on Homeland Security and Governmental Affairs and the House Committee on Oversight and Government Reform; (2) consulting services as advisory or assistance services akin to those in Federal Acquisition Regulation 2.101 when provided to covered foreign entities (excluding services related to legal compliance or dispute resolution); (3) covered foreign entity as the governments or entities of China or Russia, governments designated for repeatedly supporting international terrorism (including under 22 U.S.C. 2371), entities on specified Department of Commerce lists (i.e., Entity List, Denied Persons List, Unverified List, Military End User List), entities identified by the Secretary of Defense under section 1237(b) of the FY1999 NDAA, or entities on the Treasury's NS-CMIC List; (4) executive agency as defined in 41 U.S.C. 133; (5) False Claims Act as 31 U.S.C. 3729–3733; and (6) North American Industry Classification System's Industry Group code 5416 as the category for management, scientific, and technical consulting services (including specified subcodes such as 541611 and 541618).