Clean Hands Firearm Procurement Act

This legislation requires the Attorney General, through the Bureau of Alcohol, Tobacco, Firearms, and Explosives, to annually publish a list of certain federally licensed firearms dealers. These "covered firearms dealers" are defined as those from whom at least 25 firearms have been traced to a crime within three years of their last retail sale, occurring in at least two of the three preceding calendar years. The purpose of this public listing is to identify dealers with a significant number of firearms quickly diverted to criminal activity. Furthermore, the bill prohibits any Federal agency from entering into contracts with a dealer who has been identified as a covered firearms dealer in the current or two preceding calendar years. This prohibition aims to prevent federal funds from supporting businesses linked to a high volume of crime-related firearm traces. However, the Attorney General may grant a waiver for national security purposes upon request from the Secretary of Defense or Homeland Security, with immediate notification to relevant congressional committees.