The Time to Choose Act of 2025 targets conflicts of interest in federal contracting by prohibiting awards to consulting firms that simultaneously contract with the U.S. government and with China or other designated foreign entities. It directs the Federal Acquisition Regulation Council to amend the FAR to require self-certification that a bidder or its subsidiaries hold no consulting contracts with covered foreign entities before entering a federal contract.
It also creates a case-by-case waiver process, imposes reporting obligations for contractors, and establishes penalties for false information. The bill aims to curb foreign influence in defense and national security programs while preserving the integrity of federal procurement.
At a Glance
What It Does
Amends the FAR to require self-certification that bidders have no consulting contracts with covered foreign entities before award, and prohibits awards to entities that provide consulting services to such entities. Establishes a waiver mechanism with security reviews, disclosures, and performance controls.
Who It Affects
Executive agencies awarding consulting contracts; consulting firms and their subsidiaries; entities designated as covered foreign entities; contracting officers and compliance staff.
Why It Matters
Sets a formal boundary between U.S. government work and foreign influence, reducing procurement risk and potential security vulnerabilities in sensitive contracts.
More articles like this one.
A weekly email with all the latest developments on this topic.
What This Bill Actually Does
The act targets conflicts that arise when a single consulting firm works for both a federal agency and a foreign power or its proxies. It requires the Federal Acquisition Regulation Council to amend the rules so that any firm bidding on executive-branch consulting work must certify that neither the firm nor its subsidiaries have current consulting contracts with covered foreign entities.
If a firm or its subsidiaries do, the firm cannot win the federal contract for consulting services. The bill also authorizes a waiver process, subject to national-security review and transparency requirements, with strict timing and disclosure limits.
In performance, contractors must report to the agency on human rights, religious liberty, and national-security risks identified during the contract. Violations, including false self-certifications, can lead to contract termination, debarment, and False Claims Act penalties.
Finally, the bill defines “covered foreign entity” to include the Chinese government and related entities, certain Russian and other state actors, and entities on several sanctions and export control lists. No new funding is authorized.
The procedural rules are intentionally stringent: a firm may obtain a one-year waiver for national-security reasons, with possible extensions but capped totals, and only one waiver per entity at a time. The reporting requirements span ownership, foreign relationships, work performed, and any security-relevant information, creating a comprehensive audit trail for agencies and Congress.
The net effect is a higher bar for contractors who operate across sensitive U.S. government programs and foreign influence networks.
The Five Things You Need to Know
The FAR Council must amend FAR to require pre-award self-certification that no consulting contract exists with a covered foreign entity.
Federal contracts for consulting services cannot be awarded to firms that provide such services to covered foreign entities.
A case-by-case waiver process exists, with security reviews, public and congressional notifications, and limited durations.
Contractors must report human rights, religious liberty, and national-security risks identified during performance.
“Covered foreign entity” includes China-related authorities and other specified foreign actors, with sanctions-list-based scope and extensive definitions.
Section-by-Section Breakdown
Every bill we cover gets an analysis of its key sections.
Certification before award
In order to end conflicts of interest, the bill requires the Federal Acquisition Regulation Council to amend FAR so that any bidder for executive agency consulting services (5416) must certify that neither it nor its subsidiaries hold a consulting contract with any covered foreign entity before entering into a federal contract.
Contract prohibitions
Federal contracts for consulting services cannot be awarded to an entity that provides consulting services to a covered foreign entity if that relationship exists for that entity or any of its subsidiaries or affiliates.
Waiver process
The head of an executive agency may grant a national-security–driven waiver on a case-by-case basis, with conditions including consultation with Defense and Intelligence leaders, notification to OMB and Congress, and public disclosure of waiver details unless disclosing would harm national security. Waivers are time-limited and limited to one active waiver per entity.
Contractor reporting
If a waiver is granted or during contract performance, the contractor must report information related to human rights, religious liberty violations, and any risks to U.S. economic or national security identified in the course of the contract.
Penalties for false information
If a firm knowingly submits a false certification or information, the agency may terminate the contract, suspend, or debar the firm. False Claims Act liability can include treble damages for misrepresentation to obtain or maintain a contract.
Definitions
Key terms include ‘consulting services’ (per FAR 2.101 but excluding certain goods/services), ‘executive agency,’ ‘False Claims Act,’ and ‘covered foreign entity,’ which encompasses China-related governments/entities, certain Russian and other sanctioned actors, and entities on specific Commerce/Sanctions lists.
Funding
The act states that no additional funding is authorized for its implementation, implying existing agency budgets must absorb any resulting administrative costs.
This bill is one of many.
Codify tracks hundreds of bills on Government across all five countries.
Explore Government in Codify Search →Who Benefits and Who Bears the Cost
Every bill creates winners and losers. Here's who stands to gain and who bears the cost.
Who Benefits
- Federal contracting officers gain clearer rules and enforceable standards, reducing ambiguity and procurement risk.
- U.S. national security programs benefit from reduced exposure to foreign influence in contracting.
- U.S. taxpayers benefit from potentially lower risk of contracts that could indirectly aid adversaries or undermine policy objectives.
- Domestic consulting firms without foreign-conflicted clients benefit from a more level playing field and clearer compliance expectations.
Who Bears the Cost
- Consulting firms that currently serve covered foreign entities bear compliance costs and risk loss of federal contracts.
- Federal agencies incur administrative costs to implement the waiver process, collect disclosures, and monitor certifications.
- Affiliates and subcontractors of the primary contractors face added reporting and transparency duties.
- Smaller firms with complex ownership might incur disproportionate compliance burdens compared to larger entities with established governance.
Key Issues
The Core Tension
Balancing strong safeguards against foreign influence with the need to maintain competitive, timely access to specialized consulting expertise, all while managing administrative burden and ensuring that waiver processes are not exploited to bypass the core prohibitions.
The bill creates a robust framework to separate U.S. government contracting from foreign influence, but several tensions arise. First, the scope depends on a particular and sometimes broad set of sanctions and list-based determinations that could evolve, potentially ensnaring firms with limited direct foreign exposure.
Second, the waiver mechanism, though tightly regulated, presents a possible path to continue critical work when no alternative exists, which could be perceived as weakening procurement integrity if invoked too readily. Third, the extensive data collection on contractors and covered entities raises concerns about privacy, security, and administrative overhead within agencies already operating under tight budgets.
Finally, because the act does not authorize new funding, agencies must absorb additional oversight duties within their existing resources, potentially impacting procurement timelines and capacity to enforce the new requirements.
Try it yourself.
Ask a question in plain English, or pick a topic below. Results in seconds.