; and (2) may negotiate with such entity corrective measures that the entity or any subcontractor of the entity may take in order to avoid having the entity placed on the list under subsection (d). (d) List of ineligible entities (1) In general For each calendar year beginning with the first calendar year that begins after the date that is 2 years after the date of enactment of this Act, the Secretary of Labor shall prepare, and submit to all executive agencies, a list of each entity that shall be ineligible for a contract with an executive agency for that year based on— (A) serious, repeated, or pervasive violations of section 12 of the Fair Labor Standards Act of 1938 committed by the entity or any subcontractor of the entity; or (B) the failure of such entity, or any subcontractor of such entity, to complete any corrective measure negotiated under subsection (c). (2) Ineligibility The head of an executive agency shall not solicit a contract from any entity on the list under paragraph (1) that is in effect for a year for that year or any of the subsequent 4 years. (e) Criminal penalty for failure To report (1) Offense It shall be unlawful for an entity to knowingly fail to make a disclosure required under subsection (a). (2) Penalty (A) In general A violation of paragraph (1) shall be treated as a violation of section 1031(a) of title 18, United States Code. (B) Gross loss to Government