Exercise of Authority Under Section 218 of Title 18, United States Code

This executive order delegates presidential authority under 18 U.S.C. § 218 to agency heads, allowing them to void contracts and benefits obtained through bribery, graft, or conflicts of interest after a final criminal conviction. It requires Defense, GSA, and NASA to jointly issue government-wide regulations, while mandating procedural protections including notice, opportunity to respond, hearings, and written decisions with restitution calculations.

48 FR 51281

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Key directives

Delegate presidential authority under 18 U.S.C. § 218 to department/agency heads
DOD Secretary, GSA Administrator, and NASA Administrator must jointly issue government-wide implementing regulations
Agency heads may exercise authority through implementing regulations
Regulations must provide written notice to affected persons/entities
Regulations must afford opportunity to submit pertinent information before final decision
Regulations must provide hearing upon request with witness confrontation rights
Final written decision required specifying restitution or remedy, considering fair value of tangible benefits retained by agency

Who is ordered

Timeline

Immediate

Delegation of voiding authority to agency heads takes effect

Near term (90d)

Joint government-wide regulations from DOD/GSA/NASA required (no explicit deadline)

Long term

Agency-specific implementing regulations to be promulgated
Ongoing application to contracts affected by future corruption convictions

Risks & tensions

No explicit deadline for joint or agency-specific regulations creates implementation uncertainty
Joint rulemaking by three agencies may produce coordination delays or interagency friction
Restitution calculation requiring 'fair value of tangible benefits retained' introduces subjective standard that may generate litigation
Limitation to 'final conviction' means authority cannot be exercised during appeals, potentially delaying remedial action
Vague whether 'government-wide' regulations preempt or merely supplement agency-specific rules