A new bill that will further regulate the federal acquisition process, called The Close the Contractor Fraud Loophole Act, was approved by the House Oversight and Government Reform Committee last week, according to a report by Federal Computer Week, and is now headed to the full House of Representatives.

The new bill, proposed by Rep. Peter Welch (D-Vt.), will force companies to notify their contracting agency’s inspector general in writing if they find evidence of illegal behavior or suspect they were overpaid for a contract. If the contractor fails to do so, it could be suspended or debarred, according to the article.

The article points out that regulators have also opened a new case to look into the current major exemptions in the FAR regulations right now: 1) contractors who have less than $5 million in government contracts; 2) contracts dealing with commercial items; and 3) contracts performed overseas. Welch (pictured) told a congressional hearing that the latter exemption sends the message to contractors: “if you’re going to commit fraud, go overseas and do it.”

Welch has also noted concerns about the lack of a commitment by federal regulators to create a timeline concerning these regulations.