Bill Overview
Title: Federal Contracting for Peace and Security Act
Description: This bill requires executive agencies to terminate their contracts with companies conducting business operations in Russia. This requirement ends when Russia takes steps to restore the safety, sovereignty, and condition of Ukraine. The bill shall not apply to the procurement of products or services for (1) the benefit, either directly or through the efforts of regional allies, of Ukraine; or (2) humanitarian purposes to meet basic human needs. The bill provides for a waiver where in the national interest of the United States.
Sponsors: Rep. Maloney, Carolyn B. [D-NY-12]
Target Audience
Population: People globally working for or dependent on companies with U.S. federal contracts conducting business in Russia
Estimated Size: 300000
- The bill targets companies that have contracts with the U.S. federal government and are conducting business operations in Russia. Therefore, the immediate business impact will be on such companies.
- These companies employ people globally and in the United States, so their employees might be impacted by contract terminations.
- Indirectly, employees of subcontractors and suppliers to these companies might also be affected due to reduced business operations.
- The employees of these companies and subcontractors in Russia and potentially in other countries will be impacted.
- The provision for national interest waiver means some business operations might continue, reducing the potential impact range.
- Employees involved with the sectors exempted for humanitarian and Ukraine support purposes will not be immediately impacted.
Reasoning
- The policy primarily impacts U.S.-based companies with federal contracts and their operations in Russia. This could lead to job insecurity for employees in those businesses.
- The impact will mitigate over time as companies re-align their operations or secure waivers under national interest provisions.
- This policy may not directly impact average consumers but could affect employees of impacted companies and potentially influence broader economic conditions.
- Certain sectors, especially those exempted for humanitarian purposes or supporting Ukraine, will see minimal impact.
- The budget constraints suggest that while the initial impact might be substantial for some, the numbers of people and businesses affected in the U.S. are limited to manageable levels.
- Some workers might not feel a significant impact if their roles shift internally within their company, suggesting a potential redistribution of roles rather than wholesale job losses.
- Fiscal policy and foreign policy considerations may drive some companies to adjust rather than completely cease operations. This adaptation might soften long-term impacts.
Simulated Interviews
Engineer (Virginia)
Age: 45 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 5.0 years
Commonness: 4/20
Statement of Opinion:
- I believe our company might be impacted given our connections with Russia, but with waivers and exemptions possible, I'm hopeful any changes won't lead to job losses.
- I'm confident the government will prioritize national security and thereby our need to maintain skilled personnel will be recognized.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 8 |
| Year 2 | 7 | 8 |
| Year 3 | 6 | 8 |
| Year 5 | 6 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 9 | 9 |
Finance Manager (California)
Age: 50 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 3.0 years
Commonness: 3/20
Statement of Opinion:
- Frankly, this might cause some headaches initially as we disentangle certain accounts, but overall our company is diversified enough.
- I appreciate the ethical stand but it makes our jobs a bit more complex in the short term.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 8 |
| Year 3 | 7 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Software Developer (New York)
Age: 30 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 2.0 years
Commonness: 6/20
Statement of Opinion:
- I'm nervous about what this means for my project and job security, but I'm hopeful management will find a way forward.
- It's unsettling not knowing how quickly changes will be implemented or what alternative projects will surface.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 6 |
| Year 2 | 5 | 6 |
| Year 3 | 7 | 7 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Logistics Coordinator (Texas)
Age: 37 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 1.0 years
Commonness: 5/20
Statement of Opinion:
- I'm actually quite worried. Any trade disruption could have significant impacts on my role.
- This could lead to logistical complications, but on the flip side, it might also present new opportunities within the company to re-focus efforts.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 8 |
| Year 2 | 7 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 9 | 9 |
Administrative Assistant (Florida)
Age: 28 | Gender: other
Wellbeing Before Policy: 9
Duration of Impact: 0.0 years
Commonness: 7/20
Statement of Opinion:
- I don't expect much to change for my work since we're not directly involved with Russia at all.
- I'm supportive of initiatives pushing for peace and security globally, even if indirectly. This particular policy just doesn't impact me personally.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 9 | 9 |
| Year 2 | 9 | 9 |
| Year 3 | 9 | 9 |
| Year 5 | 9 | 9 |
| Year 10 | 9 | 9 |
| Year 20 | 9 | 9 |
Sales Rep (Ohio)
Age: 42 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 2.0 years
Commonness: 4/20
Statement of Opinion:
- This could be tricky as we've been expanding our Russian operations due to increasing demand.
- I'm optimistic though that with the humanitarian clause in the policy, we might mitigate major disruptions.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 9 | 9 |
Government Affairs Officer (Washington)
Age: 55 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 2/20
Statement of Opinion:
- We might have to pivot our strategy which could delay projects, but overall we're aligned with the policy's direction.
- Diplomatically speaking, this is an interesting move with lots of implications, but it's not unexpected given recent geopolitical trends.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 7 |
| Year 2 | 6 | 7 |
| Year 3 | 6 | 7 |
| Year 5 | 7 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 9 | 9 |
Supply Chain Analyst (Colorado)
Age: 33 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 3.0 years
Commonness: 6/20
Statement of Opinion:
- This will surely make my job a lot more complicated in the near term. I expect some significant challenges at first.
- I hope this doesn't lead to layoffs, but there's always the risk when contracts are impacted this way.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 7 |
| Year 2 | 5 | 7 |
| Year 3 | 6 | 7 |
| Year 5 | 7 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 9 |
Intern (Nevada)
Age: 21 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 0.0 years
Commonness: 3/20
Statement of Opinion:
- As an intern, my perspective is limited but it feels like an important and strategic move that could enrich my learning experience.
- Hopefully, I get to be involved more deeply to see how we adjust our strategies and operations.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 9 | 9 |
| Year 10 | 9 | 9 |
| Year 20 | 9 | 9 |
Retired (Illinois)
Age: 60 | Gender: female
Wellbeing Before Policy: 9
Duration of Impact: 0.0 years
Commonness: 8/20
Statement of Opinion:
- I feel for those who might be affected, but my lifestyle and income are stable.
- It seems beneficial for peace in the long term which is what matters most from any perspective.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 9 | 9 |
| Year 2 | 9 | 9 |
| Year 3 | 9 | 9 |
| Year 5 | 9 | 9 |
| Year 10 | 9 | 9 |
| Year 20 | 9 | 9 |
Cost Estimates
Year 1: $50000000 (Low: $30000000, High: $100000000)
Year 2: $45000000 (Low: $27000000, High: $90000000)
Year 3: $40000000 (Low: $24000000, High: $80000000)
Year 5: $30000000 (Low: $18000000, High: $60000000)
Year 10: $15000000 (Low: $9000000, High: $30000000)
Year 100: $5000000 (Low: $3000000, High: $10000000)
Key Considerations
- Potential adverse effects on sectors highly reliant on federal contracts and doing business in Russia.
- Long-term geopolitical benefits from realigning contract partners with U.S. foreign policy objectives.
- Impact on supply chains and vendor selection processes across federal agencies.