means any act in
(1) "Arising out of a contract with the DoD"
(i) Attempting to obtain,
Performing a contract or first-tier subcontract of any
agency, department, or component of the Department of Defense (DoD).
(2) "Conviction of fraud or any other felony" means any
conviction for fraud or a felony in violation of state or Federal criminal
statutes, whether entered on a verdict or plea, including a plea of nolo
contendere, for which sentence has been imposed.
(3) "Date of conviction" means the date judgment was entered
against the individual.
(b) 10 U.S.C. 2408 provides that any individual who is convicted after
September 29, 1988, of fraud or any other felony arising out of a contract
with the DoD is prohibited from:
(1) Working in a management or supervisory capacity on any DoD
contract or first-tier subcontracts;
(2) Serving on the board of directors of any DoD contractor or
first-tier subcontractor; or
Serving as a consultant to any DoD contractor or first-tier
(c) Unless waived, the prohibition in paragraph (b) applies for five
years from the date of conviction.
(d) 10 U.S.C. 2408 further provides that a defense contractors or
first-tier subcontractors shall be to a criminal penalty of not more than
$500,000 if they are convicted of knowingly--
(1) Employing a person under a prohibition specified in paragraph
(b) of this clause; or
(2) Allowing such person to serve on the board of directors of
the contractor or first-tier subcontractor.
(e) In addition to the criminal penalties contained in 10 U.S.C. 2408,
the Government may consider other available remedies, such as--
(1) Suspension or debarment;
Cancellation of the contract at no cost to the Government; or
(3) Termination of the contract for default.
(f) The Contractor may submit written requests for waiver of the