← LEADERSHIP TERMINAL

US CONGRESS · SITTING

Mike D. Rogers

Representative for Alabama · Republican · United States

IN THEIR OWN WORDS

(8) An assessment of NATO's deterrence efforts in Romania, including a description and evaluation of-- (A) United States force posture in Romania, including any new rotations to Romania intended to enhance deterrence following the 2025 decision to end the rotational presence of a United States brigade; (B) consultations with NATO allies r…

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(8) An assessment of NATO's deterrence efforts in Romania, including a description and evaluation of-- (A) United States force posture in Romania, including any new rotations to Romania intended to enhance deterrence following the 2025 decision to end the rotational presence of a United States brigade; (B) consultations with NATO allies r…

NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2027 · 2026-07-21 · READ IN THE CONGRESSIONAL RECORD

(a) Requirement for Risk-based Approach.--Section 3843 of title 10, United States Code, is amended to read as follows: ``Sec. 3843. Contractor business systems: monitoring and surveillance standards ``(a) Requirement for Risk-based Approach.--The Secretary shall implement an agile, streamlined risk-based approach to surveillance of contra…

NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2027 · 2026-07-21 · READ IN THE CONGRESSIONAL RECORD

(a) Requirement for Risk-based Approach.--Section 3843 of title 10, United States Code, is amended to read as follows: ``Sec. 3843. Contractor business systems: monitoring and surveillance standards ``(a) Requirement for Risk-based Approach.--The Secretary shall implement an agile, streamlined risk-based approach to surveillance of contra…

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(b) Modification of Certain Certifications and Assessments.-- (1) Certifications.--Section 1249(b) of the National Defense Authorization Act for Fiscal Year 2026 (Public Law 119-60) is amended-- (A) in the matter preceding paragraph (1), by striking ``The certification described'' and inserting following: ``(1) In general.--Except as prov…

NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2027 · 2026-07-21 · READ IN THE CONGRESSIONAL RECORD

(b) Objectives.--The Commander shall ensure that the Cognitive Performance Enhancement Program-- (1) improves readiness, resilience, and recovery, using evidence-based holistic and proactive high-performance brain training that has a validated ability to scale cost- effectively across the special operations forces enterprise; [[Page H4842…

NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2027 · 2026-07-21 · READ IN THE CONGRESSIONAL RECORD

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  1. (b) Purpose.--The purpose of the Program shall be to provide a coordinated, holistic framework for the Department of Defense to effectively identify and manage the risks within and across the broader defense supply chain, including risks associated with microelectronics, semiconductors, counterfeit items, diminishing manufacturing sources and material shortages, obsolescence, supply chain disruptions, cyber vulnerabilities, foreign sourced components, foreign investments, financial distress, and sourcing of critical technologies from entities within or associated with covered nations.

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  2. (a) Establishment.--Not later than 180 days after the date of the enactment of this Act, the Secretary of Defense, acting through the Assistant Secretary of Defense for Industrial Base Policy, shall establish a Department of Defense-wide program to be known as the ``Defense Supply Chain Intelligence and Risk Response Program'' (in this section referred to as the ``Program'') to enhance the Department's ability to illuminate, assess, anticipate, and respond to risks across the defense industrial base supply chain.

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  3. (6) The term ``synthetic diamond materials'' means synthetic or laboratory-engineered diamond materials, including grit, powders, wafers, films, optical components, electronic components, and other functional diamond forms, used in defense-critical applications. SEC. 1810. DEFENSE SUPPLY CHAIN INTELLIGENCE AND RISK RESPONSE PROGRAM.

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  4. (2) The term ``capable domestic source'' means a source located in the United States that the Secretary of Defense determines has the technical capability, production capacity, quality controls, security posture, and ability to meet designated defense requirements at program scale. (3) The term ``covered system'' means such defense systems or platforms as the Secretary of Defense determines appropriate. (4) The term ``source of concern'' means a covered nation as defined in section 4872(f)(2) of title 10, United States Code. (5) The term ``super abrasive material'' includes cubic boron nitride and other ultra-hard materials used in defense manufacturing or defense system applications.

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  5. (b) Implementation Plan.--Not later than 90 days after submittal of the report under subsection (a), the Secretary of Defense shall submit to the congressional defense committees a plan-- (1) to reduce reliance on foreign sources of concern for synthetic diamond materials and related super abrasive materials; and (2) to increase the use of capable domestic sources and, only where such capable domestic sources are not available, capable sources located in allied or partner countries, for such materials in designated defense-critical applications. (c) Definitions.--In this section: (1) The term ``allied or partner country'' means a country that the Secretary of Defense determines, based on national security considerations, does not pose an undue risk to the defense industrial base or the security of defense supply chains.

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  6. (a) Assessment.--Not later than 180 days after the date of the enactment of this Act, the Secretary of Defense shall submit to the congressional defense committees a report that includes-- (1) an assessment of the extent to which the Department of Defense relies on foreign sources, including sources of concern, for synthetic diamond materials and related super abrasive materials used in defense-critical applications; (2) a description of the defense systems, subsystems, and manufacturing processes for which such materials are critical, including their role in the production, sustainment, repair, sensing, guidance, navigation, communications, electronic warfare, and precision manufacturing functions of covered systems; (3) an evaluation of the current and projected capacity of capable domestic sources and capable sources located in allied or partner countries to meet Department of Defense requirements for such materials; (4) an assessment of risks to the defense industrial base associated with supply disruption, including risks arising from single points of failure, limited qualified suppliers, and reliance on sources of concern; and (5) recommendations to mitigate identified risks and to strengthen domestic production capability where the Secretary determines such capability is necessary to address national security risks.

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  7. (30) Synthetic diamond and super abrasive materials used in defense applications. (d) Conforming Repeal.--Section 849 of the National Defense Authorization Act for Fiscal Year 2021 (Public Law 116-283) is repealed. SEC. 1809. ASSESSMENT AND IMPLEMENTATION PLAN FOR SOURCING OF SYNTHETIC DIAMOND AND SUPER ABRASIVE MATERIALS USED IN DEFENSE APPLICATIONS.

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  8. (23) Optical glass or optical glass systems, as defined in section 834 of the National Defense Authorization Act for Fiscal Year 2026, and weapon sights made from such glass. (24) Optical transmission equipment, including optical fiber, optical transmitters, and optical cable equipment. (25) Continuous filament glass fiber yarn. (26) Ultra-high-molecular-weight polyethylene fiber production capacity. (27) Copper foil and copper clad laminate (including woven glass mat and glass fibers necessary to produce such laminate). (28) Chemicals critical to defense applications, as determined by the Under Secretary of Defense for Acquisition and Sustainment. (29) Non-rare earth permanent magnets composed of materials such as iron nitride, iron-nickel, or manganese bismuth.

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  9. (15) Rare earth metals and alloys, namely metals and alloys of erbium, gadolinium, lutetium, neodymium, praseodymium, samarium, scandium, dysprosium, terbium, ytterbium, and yttrium. (16) Rare earth fluorides, namely fluorides of erbium, gadolinium, lutetium, neodymium, praseodymium, samarium, scandium, dysprosium, terbium, ytterbium, and yttrium. (17) Magnesium alloy parts. (18) High-purity iron suitable for rare earth magnet manufacturing, naval shipbuilding alloys, electrical steel, and other specialty alloys. (19) Aluminum and aluminum-based alloys. (20) Graphene and graphene-based materials. (21) Mesophase pitch, isotropic pitch, and other critical precursor materials for carbon-carbon composites and synthetic graphite. (22) Boron carbide powder or any finished or semi-finished product containing boron carbide powder.

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  10. (8) Neodymium oxide and metal, praseodymium oxide and metal, and neodymium-praseodymium oxide and metal. (9) Additive powders for specialty metals such as titanium- based and nickel-based alloys. [[Page H4880]] (10) Tantalum, including tantalum metal, tantalum powder, and tantalum alloys. (11) Gallium, gallium nitride, and gallium oxide. (12) Niobium, including niobium metal, niobium powder, and niobium alloys. (13) Tungsten, tungsten carbide, and tungsten precursors, including tungsten ores and concentrates, ammonium paratungstate, ammonium metatungstate, tungstic acid, sodium tungstate, and tungsten oxides. (14) Heavy rare earth oxides, namely oxides of erbium, gadolinium, lutetium, samarium, scandium, dysprosium, terbium, ytterbium, and yttrium.

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  11. (c) Items Described.--The items described in this subsection are the following: (1) A material or other item of supply for which the Secretary or another designated official has issued a waiver or exception to a statutory sourcing restriction, or for which a domestic non-availability determination has been applied. (2) Strategic and critical materials (as defined in section 12(1) of the Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98h-3(1)), including rare earth materials. (3) Strategic and critical minerals derived from recycled or reused minerals and metals. (4) Printed circuit boards and components of printed circuit boards. (5) Microelectronic, semiconductor, and data storage components. (6) Neodymium-iron-boron permanent magnets. (7) Samarium and samarium-cobalt permanent magnets.

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  12. (G) Defense memoranda of understanding and related agreements between the Secretary of Defense, acting on behalf of the United States, and one or more foreign countries considered in accordance with section 4851 of such title. (H) Activities of the Industrial Analysis Group (or successor group) of the Defense Contract Management Agency. (I) Activities of the Warstopper Program (or successor program) of the Defense Logistics Agency. (J) Industrial base or acquisition policy changes. (K) Legislative proposals for modifications to relevant statutes.

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  13. (C) The Department of Defense national security strategy for the national technology and industrial base and associated policy guidance prescribed under section 4811(c) of such title. (D) Activities to modernize acquisition processes to ensure integrity of industrial base pursuant to section 4819 of such title. (E) Activities and associated expenditures related to defense supply chains, including for material, material production, components, subassemblies, and finished products, testing and qualification, infrastructure, facility construction and improvement, and equipment needed in accordance with 4817 of such title. (F) Activities of the Office of Strategic Capital.

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  14. (2) Relevant findings and recommendations for action resulting from such analyses. (3) Descriptions of specific actions undertaken or planned to be taken as a result of the analyses, including schedule and resources allocated for any planned actions. (4) Any relevant findings or recommendations from such analyses, as appropriate, that should be incorporated into one or more of the following: (A) The biennial report to Congress on the national technology and industrial base required under section 4814 of title 10, United States Code. (B) The annual report on unfunded priorities of the national technology and industrial base required under section 4815 of such title.

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  15. (2) Considerations.--In conducting the analysis described in paragraph (1), the Secretary shall consider how any actions taken under the analysis would enhance or improve-- (A) national security; (B) the economy; (C) current and potential suppliers of the items in subsection (c), including the ability of such suppliers to meet anticipated surge production requirements of the Department of Defense; and (D) implementation of any existing treaties or international agreements to which the United States is a party. (b) Reporting on Analyses, Recommendations, and Actions.-- Not later than October 1, 2027, the Secretary of Defense shall submit to the congressional defense committees a report containing the following: (1) A summary of the findings of the analyses undertaken for each item pursuant to subsection (a).

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  16. 4501 et seq.), including-- (A) actions for restricting procurement of each such item (with appropriate waivers for cost, emergency requirements, and nonavailability of suppliers), including such restrictions applicable to-- (i) domestic suppliers; (ii) suppliers in the national technology and industrial base (as defined in section 4801 of title 10, United States Code); or (iii) suppliers in other allied country; (B) actions for increasing Federal Government investment in research and development or using other available authorities such as contracts, grants, loans, cooperative agreements, or other transaction authorities, including actions to-- (i) expand sourcing, processing, production, manufacturing capability, or production capacity of each such item; (ii) diversify sources of supply of each such item; or (iii) promote alternative approaches for addressing military requirements for each such item; (C) actions for prohibiting procurement each such item from selected sources or countries; (D) stockpiling actions for each such item, including creating incentives for domestic suppliers to expand and retain capacity such as-- (i) use of long-term purchasing agreements; or (ii) restrictions related to provenance of each such item purchased for such stockpile; (E) actions for increasing availability of each such item through recycling or reuse; or (F) a combination of actions described under subparagraphs (A) through (E).

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  17. (a) Analysis Required.-- (1) In general.--The Secretary of Defense, acting through the Under Secretary of Defense for Acquisition and Sustainment and other appropriate officials, shall conduct an analysis of each item described in subsection (c) and shall make recommendations for action, consistent with the policies, programs, and activities required under chapters 381 through 385 and chapter 389 of title 10, United States Code, chapter 83 of title 41, United States Code, and the Defense Production Act of 1950 (50 U.S.C.

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  18. (d) Comptroller General Report.--Not later than 270 days after the date of the enactment of this section, the Comptroller General of the United States shall submit to the congressional defense committees a report that reviews of use of government purchase cards by the Department of Defense to obtain electronic parts (as defined in section 818 of the National Defense Authorization Act for Fiscal Year 2012 (Public Law 112-81; 10 U.S.C. 3241 note prec.)) and components for such electronic parts using multiple award contracts or using full and open competition, along with any recommendations to improve procurement procedures to reduce the risk posed by counterfeit electronic parts and components.''. SEC. 1808. ANALYSIS AND REPORT ON SOURCING OF CERTAIN ITEMS.

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  19. (b) DFARS Revision.--Not later than 180 days after the date of the enactment of this Act, the Secretary shall revise the Department of Defense Supplement to the Federal Acquisition Regulation to carry out the amendments made by this section. (c) Guidance Required.--Not later than 30 days after the revision required under subsection (b) has been finalized, the Secretary shall update the guidance required under section 818(c) of the National Defense Authorization Act for Fiscal Year 2012 (Public Law 112-81; 10 U.S.C. 3241 note prec.)) as amended by this section, including practices and procedures to be used under part 8 of the Federal Acquisition Regulation.

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  20. 3241 note prec.) is amended-- (1) in subparagraph (C), by striking ``and'' at the end; (2) in subparagraph (D)(iii), by striking the period at the end and inserting ``; and''; and (3) by adding at the end the following new subparagraph: ``(E) require that, for purchases made in accordance with procedures applicable to purchases below micro-purchase threshold (as defined in section 3573 of title 10, United States Code) or in accordance with procedures applicable to purchases below simplified acquisition threshold (as defined in section 3571 of such title), Department personnel-- ``(i) obtain electronic parts that are in production or currently available in stock from the original manufacturer or an authorized dealer for such electronic part, or from a supplier that obtains such electronic parts exclusively from the original manufacturer or an authorized dealer for such electronic part; and ``(ii) obtain electronic parts that are not in production or currently available in stock in accordance with regulations prescribed pursuant to subparagraph (C) or (D).''.

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  21. Inhofe National Defense Authorization Act for Fiscal Year 2023 (Public Law 117-263; 136 Stat. 2727) is amended-- (1) in paragraph (3)(A) by inserting ``, including any recommendations that the Comptroller General considers appropriate'' before the period at the end; and (2) in subsection (c)(5) by striking ``the date that is 5 years after the date of the enactment of this Act'' and inserting ``the date that is 12 years after the date of the enactment of the National Defense Authorization Act for Fiscal Year 2027''. SEC. 1807. REQUIREMENTS RELATED TO DETECTION AND AVOIDANCE OF COUNTERFEIT ELECTRONIC PARTS. (a) In General.--Section 818(c)(3) of the National Defense Authorization Act for Fiscal Year 2012 (Public Law 112-81; 10 U.S.C.

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  22. 4651 note prec.) is amended-- (1) by redesignating subsection (e) as subsection (f); and (2) by inserting after subsection (d) the following new subsection: ``(e) Certifications.-- ``(1) In general.--The Secretary of Defense shall submit to the congressional defense committees a written certification-- ``(A) not later than June 30, 2027, that implementation of the strategy required by this section has begun; and ``(B) not later than January 1, 2030, that the strategy required by this section has eliminated the reliance of the Department on any covered nation to acquire computer displays.''. SEC. 1806. EXTENSION OF COMPTROLLER GENERAL ASSESSMENTS AND REPORTS ON COMPLIANCE WITH PROCUREMENT REQUIREMENTS RELATING TO RARE EARTH ELEMENTS AND STRATEGIC AND CRITICAL MATERIALS. Section 857(c) of the James M.

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  23. (j) Technical and Conforming Changes.--Subchapter III of chapter 13 of title 41, United States Code, is amended-- (1) in the table of sections for the subchapter by adding after the item related to section 1327 the following: ``1328. Additional provisions.''; and (2) by striking ``of this title'' each place the term appears. SEC. 1805. MODIFICATIONS TO STRATEGY TO ELIMINATE SOURCING OF COMPUTER DISPLAYS FROM CERTAIN NATIONS. Section 835 of the National Defense Authorization Act for Fiscal Year 2026 (Public Law 119-60; 10 U.S.C.

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  24. (2) Performance of duties.--The Secretary shall ensure that the officials designated-- (A) regularly participate in the activities of the Council; (B) ensure that any information requested by the Council from the agency represented by the such official or officials is provided to the Council in a timely manner; and (C) establish procedures to ensure that Under Secretary of Defense for Acquisition and Sustainment, the Under Secretary of Defense for Research and Engineering, the Chair of the Joint Requirements Oversight Council, the Assistant Secretary of Defense for Industrial Base [[Page H4879]] Policy, and other appropriate personnel of the Department of Defense are informed of the activities of the Council in a timely manner.

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  25. Inhofe National Defense Authorization Act for Fiscal Year 2023 (Public Law 117-263) is amended by inserting before the period at the end the following: ``and the Federal Acquisition Security Council Program Office established under section 1323(b)(2) of title 41, United States Code''. (i) Implementation by the Department of Defense.-- (1) Notification.--Not later than 30 days after the date of the enactment of this Act, the Secretary of Defense shall provide to the congressional defense committees a notification of the designation of the officials of the Department of Defense who shall serve on the Council in accordance with clause (b)(1)(C)(ii) of section 1322 of title 41, United States.

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  26. ``(c) Statutorily Designated Covered Article Defined.--The term `statutorily designated covered article' pursuant to section 1321(5)-- ``(1) means a vehicle or a mechanical device commonly known as an `unmanned ground vehicle system' that-- ``(A) is capable of locomotion, navigation, or movement on the ground; and ``(B) operates at a distance from one or more operators or supervisors based on commands or in response to sensor data, or through any combination thereof; and ``(2) includes-- ``(A) humanoid robots, mobile robotics, remote surveillance vehicles, and autonomous patrol technologies; and ``(B) the vehicle, its payload, and any external device used to control the vehicle.''. (h) Reallocating Existing Resources.--Section 5949(l)(1) of the James M.

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  27. ``(b) Update to Regulations.--The Federal Acquisition Security Council shall update, not later than two years after the date of the enactment of this section, any regulations of the Council as necessary.

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  28. (g) Additional Provisions.--Section 1328 of title 41, United States Code, is amended to read as follows: ``Sec. 1328. Additional provisions ``(a) Compliance With Existing Prohibitions.--In implementing this subchapter, the Council shall coordinate, as applicable and practicable, with the head of an agency to assist with compliance by the agency with-- ``(1) section 889 of the John S. McCain National Defense Authorization Act of 2019 (Public Law 115-232; 41 U.S.C. 3901 note); ``(2) section 5949 of the James M. Inhofe National Defense Authorization Act of 2023 (Public Law 117-263; 41 U.S.C. 4713 note); and ``(3) the American Security Drone Act of 2023 (Public Law 118-31; 41 U.S.C. 3901 note).

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  29. (f) Judicial Procedure.--Section 1327(b) of title 41, United States Code, is amended-- (1) in paragraph (1), by striking ``section 1323(c)(6)'' and inserting ``section 1323(c)(7)''; (2) in paragraph (3), by striking ``sections 1323(c)(5)'' and inserting ``sections 1323(c)(6)''; and (3) in paragraph (4), by amending subparagraph (B)(i) to read as follows: ``(i) Filing of record.--The United States shall file with the court an administrative record, which shall consist of-- ``(I) in the case of a designated order issued under section 1323(c)(6) by the appropriate official, the information the Council relied upon in providing such order to such official; and ``(II) the information that the appropriate official relied upon in issuing an exclusion or removal order under section 1323(c)(6) or a covered procurement action under section 4713.''.

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  30. (e) Requirements for Executive Agencies.--Section 1326 of title 41, United States Code, is amended-- (1) in subsection (a)-- (A) in paragraph (1), by striking ``; and'' and inserting a semicolon; (B) in paragraph (2), by striking the period at the end and inserting ``; and''; and (C) by adding at the end the following: ``(3) providing any information requested by the Chairperson of the Council for the purpose of carrying out activities of this subchapter, subject to applicable law or policy on the control and handling of classified, sensitive, or proprietary information.''; (2) by striking ``supply chain'' each place it appears and inserting ``security and supply chain''; and (3) in subsection (b)(6), by striking ``supply chain'' and inserting ``security or supply chain''.

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  31. (d) Strategic Plan.--Section 1324(a) of title 41, United States Code, is amended-- (1) by inserting ``, and periodically thereafter'' after ``2018''; (2) in the matter preceding paragraph (1), by inserting ``acquisition security and'' before ``supply chain risks''; (3) in paragraph (8), by inserting ``acquisition security and'' before ``supply chain risks''; and (4) in paragraph (9)(A), by inserting ``acquisition security and'' before ``supply chain risk''.

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  32. ``(vii) Rescission of order.--An exclusion or removal order issued under this subparagraph by an official may be rescinded only by the Council.''; (iv) in subparagraph (C), as so redesignated-- (I) by striking ``subparagraph (A)'' and inserting ``subparagraph (A)(iii) or (B)(iii)''; (II) by striking ``this subparagraph'' and inserting ``subparagraph (A)(iii) or (B)(iii)''; and (III) by striking ``, except'' and all that follows before the period at the end; (v) in subparagraph (D), as so redesignated-- (I) by striking ``this paragraph'' and inserting ``subparagraph (A)(iii) or (B)(iii)''; and (II) by striking ``help''; (vi) in subparagraph (E), as so redesignated, by striking ``this paragraph'' and inserting ``subparagraph (A)''; and (vii) by adding after subparagraph (F), as so redesignated, the following: ``(G) Effective date of orders.--The effective date of an order issued under this paragraph may not be more than 365 days after the order is issued.''; (H) in paragraph (7), as so redesignated, by striking ``paragraph (5)(A)'' and inserting ``subparagraph (A) or (B) of paragraph (6)''; and (I) in paragraph (8), as so redesignated, by striking ``paragraph (5)'' and inserting ``paragraph (6)''; (4) in subsection (e), by inserting ``the Chief Data Officers Council,'' before ``the Chief Acquisition''; and (5) in subsection (f)(2), by striking the period at the end and inserting ``, unless such source is a covered source of concern.''.

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  33. ``(vi) National security waiver.--An official described under clause (iii) may waive the application of an order issued by such official under clause (ii) with respect to a covered source of concern or a covered article sold, produced, or developed by a covered source of concern for any activity subject to the reporting requirements under title V of the National Security Act of 1947 (50 U.S.C. 3091 et seq.) or any authorized intelligence activities of the United States.

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  34. ``(v) Renewal of waiver.--An official described under clause (iii) may renew a waiver under clause (iv) for an additional period of not more than 180 days if-- ``(I) the renewal of the waiver is in the national security interests of the United States; and ``(II) the official submits, not later than 30 days after renewing such waiver, a written notification to the Council, appropriate congressional committees, the Speaker and Minority Leader of the House of Representatives, and the Majority and Minority Leaders of the Senate that includes the justification for renewing the wavier.

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  35. ``(iv) Waiver.--An official described under clause (iii) may waive for a period of not more than 365 days the application of an order issued by such official under clause (ii) with respect to a covered source of concern or a covered article sold, produced, or developed by a covered source of concern if the official submits, not later than 30 days after making such waiver, a written notification to the Council, appropriate congressional committees, the Speaker and Minority Leader of the House of Representatives, and the Majority and Minority Leaders of the Senate that contains the justification for such waiver.

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  36. ``(ii) Issuance.--The officials described in clause (iii) shall, not later than 90 days after receiving a designated order, issue the order to the heads of the applicable agencies. ``(iii) Officials.--The officials described in this clause are as follows: ``(I) The Secretary of Homeland Security, for exclusion and removal orders applicable to civilian agencies, to the extent not covered by subclause (II) or (III). ``(II) The Secretary of Defense, for exclusion and removal orders applicable to the Department of Defense and national security systems other than sensitive compartmented information systems. ``(III) The Director of National Intelligence, for exclusion and removal orders applicable to the intelligence community and sensitive compartmented information systems, to the extent not covered by subclause (II).

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  37. ``(III) The Director of National Intelligence, for exclusion and removal orders applicable to the intelligence community and sensitive compartmented information systems, to the extent not covered by subclause (II).''; (ii) by redesignating subparagraphs (B) through (E) as subparagraphs (C) through (F), respectively; (iii) by inserting after subparagraph (A) the following: ``(B) Issuance of designated order.-- ``(i) Modifications.--After considering any response properly submitted by a source under paragraph (4) related to a designated order, the Council shall-- ``(I)(aa) make any such modifications to the order as the Council considers appropriate; or ``(bb) if the Council determines that the issuance of a designated order is not warranted, rescind the designated order and notify the source of the rescission; and ``(II) except in the case that the Council rescinds the designated order under subclause (I)(bb), provide the designated order (including any modifications made to such order by the Council) to the officials described in clause (iii).

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  38. [[Page H4878]] ``(ii) Order.--Not later than 90 days after receiving a recommended order, the officials described under clause (iii) shall-- ``(I) issue the order to the heads of the applicable agencies; or ``(II) submit a notification to the Council that the order will not be issued, that includes in the notification to the Council, all the reasons for why the order will not be issued. ``(iii) Officials.--The officials described in this clause are as follows: ``(I) The Secretary of Homeland Security, for exclusion and removal orders applicable to civilian agencies, to the extent not covered by subclause (II) or (III). ``(II) The Secretary of Defense, for exclusion and removal orders applicable to the Department of Defense and national security systems other than sensitive compartmented information systems.

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  39. ``(ii) Effective date considerations.--Any effective date prescribed by the Council for an order issued pursuant to clause (i) shall take into account-- ``(I) the risk posed by the covered source of concern or the covered article sold, produced, or developed by the covered source of concern to the national security of the United States; ``(II) the likelihood of the covered source of concern or the covered article sold, produced, or developed by the covered source of concern causing imminent threat to public health and safety; ``(III) the availability of an alternative source or covered article sold, produced, or developed by an alternative source; and ``(IV) an assessment of the potential direct or quantifiable costs that may be incurred by the Federal Government, a State, local, or Tribal government, or by the private sector, as a result of compliance by the head of an executive agency with such an exclusion or removal order.''; (E) in paragraph (4), as so redesignated-- (i) in the heading, by striking ``of recommendation and review'' and inserting ``and review of recommended and designated orders''; (ii) by striking ``the recommendation'' each place it appears, and inserting ``the order''; (iii) in the matter preceding subparagraph (A), by striking ``A notice of the Council's recommendation under paragraph (2)'' and inserting ``Before the Council recommends an order under paragraph (2) or issues an order under paragraph (3), a notice''; (iv) in subparagraph (A), by striking ``a recommendation has been made'' and inserting ``the order will be recommended or issued''; (v) in subparagraph (D), by striking ``paragraph (5)'' and inserting ``paragraph (6)''; and (vi) in subparagraph (E), by striking the ``the recommendation'' and inserting ``the order''; (F) in paragraph (5), as so redesignated-- (i) by striking ``paragraph (3)'' and inserting ``paragraph (4)''; (ii) in subparagraph (A), by striking ``paragraph (5)'' and inserting ``paragraph (6)''; (iii) in subparagraph (B), by striking ``paragraph (6)'' and inserting ``paragraph (7)''; (iv) by striking ``Any notice'' and inserting ``(A) In general.--Any notice''; and (v) by inserting at the end the following: ``(B) Information collected.--Any information collected from a source after notice under paragraph (4) shall be exempt from public disclosure and disclosure under subsection (b)(3)(B) of section 552 of title 5 (commonly referred to as the `Freedom of Information Act'), until an order is issued pursuant to paragraph (6).''; and (G) in paragraph (6), as so redesignated-- (i) by amending subparagraph (A) to read as follows: ``(A) Issuance of recommended orders.-- ``(i) Modifications to order.--After considering any response properly submitted by a source under paragraph (4) related to an order to be recommended under paragraph (2), the Council shall-- ``(I) make such modifications to the order as the Council considers appropriate; and ``(II) provide the order (together with any information submitted by a source under paragraph (4) related to such order) to the officials described under clause (iii).

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  40. ``(B) Exclusion or removal of second order sources or covered articles.-- ``(i) Issuance.--In the case that the Council provides an order under subparagraph (A), the Council may also provide an order to the officials described under paragraph (6)(A)(iii) requiring the exclusion of sources or covered articles from executive agency procurement actions or removal of covered articles from executive agency information systems if-- ``(I) such covered articles or such sources use a covered source of concern in the performance of a contract with the executive agency; or ``(II) such sources enter into a contract, the performance of which such source knows or has reason to believe will require, in the performance of a contract with the executive agency, the use of a covered source of concern or the use of a covered article sold, produced, or developed by a covered source of concern.

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  41. ``(ii) Contents of order.--Any order provided under clause (i) shall include-- ``(I) information regarding the scope and applicability of the order, including any information necessary to positively identify the covered source of concern or covered articles sold, produced, or developed by the covered source of concern required to be excluded or removed under the order; ``(II) a summary of any risk assessment reviewed or conducted in support of the order; ``(III) a summary of the basis for the order, including a discussion of less intrusive measures that were considered and why such measures were not reasonably available to reduce security risk; ``(IV) a description of the actions necessary to implement the order; and ``(V) where practicable, in the Council's sole and unreviewable discretion, a description of mitigation steps that could be taken by the covered source of concern that may result in the Council rescinding the order.

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  42. ``(ii) Rule of construction.--Nothing in this subparagraph may be construed as imposing any limitation on any other authority for reimbursable or nonreimbursable details. ``(iii) Nonreimbursable detail.--A nonreimbursable detail made under this subparagraph shall not be considered an augmentation of the appropriations of the receiving element of the Program Office.''; and (3) in subsection (c)-- (A) in paragraph (1)-- (i) in the matter preceding subparagraph (A), by striking ``supply chain risk'' and inserting ``acquisition security and supply chain risk associated with the acquisition of covered articles''; (ii) in subparagraph (A), by inserting ``recommended'' before ``exclusion orders''; (iii) in subparagraph (B), by inserting ``recommended'' before ``removal orders''; (iv) in subparagraph (C), by striking ``; and'' and inserting a semicolon; (v) in subparagraph (D), by striking the period at the end and inserting ``; and''; and (vi) by adding at the end the following: ``(E) issuing designated orders.''; (B) in paragraph (2)-- (i) in the heading, by striking ``Recommendations'' and inserting ``Recommended orders''; (ii) by striking ``use'' and inserting ``, using''; (iii) by striking ``to issue recommendations'' and inserting ``, recommend orders''; (iv) by striking ``Such recommendations'' and inserting ``Any such order recommended''; (v) by inserting ``to the officials described under clause (iii) of paragraph (6)(A) for issuance under such paragraph'' after ``thereof,''; (vi) in subparagraph (D), by striking ``supply chain risk'' and inserting ``acquisition security and supply chain risk associated with the acquisition of covered articles''; and (vii) in subparagraph (E), by striking ``exclusion or removal''; (C) by redesignating paragraphs (3) through (7) as paragraphs (4) through (8), respectively; (D) by inserting after paragraph (2) the following: ``(3) Designated orders.-- ``(A) Exclusion or removal of covered sources of concern.-- ``(i) In general.--Not later than 270 days after a source of concern is designated as a covered source of concern, the Council-- ``(I) shall provide to the officials described under clause (iii) of paragraph (6)(B) for issuance under such paragraph orders requiring-- ``(aa) the exclusion of the covered source of concern from any executive agency procurement action, including source selection and consent for a contractor; or ``(bb) the removal of covered articles sold, produced, or developed by the covered source of concern from the information system of executive agencies; or ``(II) report to Congress why the Council has determined to not issue an order described under subclause (I) with respect to the covered source of concern or covered articles sold, produced, or developed by the covered source of concern.

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  43. ``(E) Funding and resources.--The Program Office may use the staff and resources of the Executive Office of the President or maintain dedicated staff and resources, as appropriate, in the performance of the duties of the Office. ``(F) Shared staffing authority.-- ``(i) In general.--The Program Office may accept officers or employees of the United States or members of the Armed Forces on a detail from an element of the intelligence community (as such term is defined in section 3 of the National Security Act of 1947 (50 U.S.C. 3003)) or from another element of the Federal Government on a nonreimbursable basis, as jointly agreed to by the heads of the receiving and detailing elements, for a period not to exceed three years.

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  44. ``(B) Duties.--The Program Office shall provide to the Council, including any committees, working groups, or other constituent bodies established by the Council under paragraph (1)-- ``(i) administrative, legal, and policy support; and ``(ii) analysis and subject matter expertise on information communications technology, acquisition security, and supply chain risk. ``(C) Structure.--The head of the Program Office shall be designated by the Chairperson of the Council. ``(D) Prohibition.--The Program Office may not provide administrative support to the Council for any activities of the Council carried out pursuant to a provision of law other than a provision of law under this subchapter.

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  45. ``(11) Reporting to Congress annually on the security risks associated with the acquisition and use of covered articles sold, produced, or developed by sources of concern.''; (2) in subsection (b)-- (A) by striking ``The Council'' and inserting the following: ``(1) In general.--The Council''; (B) in paragraph (1), as so redesignated, by striking ``a program office and''; and (C) by adding at the end the following: ``(2) Federal acquisition security council program office.-- ``(A) Establishment.--Not later than 45 days after the date of the enactment of this paragraph, the President shall establish a Federal Acquisition Security Council Program Office (referred to in this paragraph as the `Program Office') within the Executive Office of the President to carry out the duties described under subparagraph (B).

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  46. ``(8) Evaluating each covered source of concern to determine whether to issue a designated order with respect to the covered source of concern or a covered article sold, produced, or developed by the covered source of concern. ``(9) Evaluating sources of concern to determine whether to issue a recommended order with respect to the source of concern, or any covered article sold, produced, or developed by the source of concern. ``(10) Monitoring and evaluating compliance by the Secretary of Homeland Security, Secretary of Defense, and Director of National Intelligence with the requirement to issue designated orders under subsection (c)(6)(B).

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  47. (c) Functions and Authorities.--Section 1323 of title 41, United States Code, is amended-- (1) in subsection (a)-- (A) by striking ``supply chain'' each place it appears and inserting ``acquisition security and supply chain''; (B) in paragraph (1), as amended by subparagraph (A), by striking ``, particularly'' and inserting ``that arise''; (C) in paragraph (2), as amended by subparagraph (A)-- (i) by striking ``sharing information'' and inserting ``exchanging information''; (ii) by inserting ``associated with the acquisition and use of covered articles'' after ``risk''; (iii) in subparagraph (B), by striking ``; and'' and inserting a semicolon; (iv) by redesignating subparagraph (C) as subparagraph (D); and (v) by inserting after subparagraph (B) the following: ``(C) the process for an executive agency to submit supply chain risk information to the Council in furtherance of identifying, mitigating, or managing its supply chain risk; and''; (D) in paragraph (6), as amended by subparagraph (A), by-- (i) striking ``posed by'' and inserting ``associated with''; and (ii) inserting ``and use'' before ``of covered articles''; (E) in paragraph (7), by striking ``posed by acquisitions'' and inserting ``associated with the acquisition''; (F) by redesignating paragraph (7) as paragraph (12); and [[Page H4877]] (G) by inserting after paragraph (6) the following: ``(7) Implementing a prioritization scheme for evaluating the security risks associated with the acquisition and use of covered articles sold, produced, or developed by a covered source of concern.

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  48. ``(B) Transition.--The Chairperson of the Council on the day before the date of the enactment of this paragraph shall remain the Chairperson until the President makes a designation pursuant to subparagraph (A).''; and (B) in paragraph (2)-- (i) in subparagraph (B), by striking `` subsection (b)(1)(H)'' and inserting ``subsection (b)(1)(C)(viii)''; and (ii) in subparagraph (C), by striking ``lead representative of each agency represented on the Council'' and inserting ``members of the Council''; and (4) in subsection (d)-- (A) by striking ``The Council'' and inserting the following: ``(1) Council meetings.--The Council''; and (B) by adding at the end the following: ``(2) Other meetings.--The Chairperson of the Council shall meet, not less frequently than semiannually, with-- ``(A) the Secretary of Homeland Security, Secretary of Defense, and Director of National Intelligence; or ``(B) in the case that any of the officials under subparagraph (A) delegated authority to an official under section 1323(c)(6)(C), with the delegated official.''.

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  49. ``(viii) An official from any executive agency not listed under clauses (i) through (vii) whose temporary or permanent participation is determined by the Chairperson of the Council to be necessary to carry out the functions of the Council while maintaining the intended balance in subject matter expertise.''; and (B) in paragraph (2)-- (i) in the heading, by striking ``Lead representatives'' and inserting ``Members''; (ii) by amending subparagraph (A)(i) to read as follows: ``(i) In general.--The head of each executive agency listed under paragraph (1)(C) shall designate the official or officials from that agency who shall serve on the Council in accordance with such paragraph.''; (iii) by amending subparagraph (A)(ii) to read as follows: ``(ii) Requirements.--To the extent feasible, any official designated under clause (i) shall have expertise in supply chain risk management, acquisitions, law, or information and communications technology.''; (iv) by amending subparagraph (B) to read as follows: ``(B) Functions.--A member of the Council shall-- ``(i) regularly participate in the activities of the Council; ``(ii) ensure that any information requested by the Council from the agency represented by the member is provided to the Council; and ``(iii) ensure that the head of the agency represented by the member and other appropriate personnel of the agency are aware of the activities of the Council.''; (3) in subsection (c)-- (A) by amending paragraph (1) to read as follows: ``(1) In general.-- ``(A) Designation.--Not later than 45 days after the date of the enactment of this paragraph, the President shall a designate a member of the Council to serve as Chairperson of the Council.

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  50. ``(ii) Two officials from the Department of Defense, one of which shall be one from the National Security Agency. ``(iii) Two officials from the Department of Homeland Security, one of which shall be one from the Cybersecurity and Infrastructure Security Agency. ``(iv) An official from the General Services Administration. ``(v) An official from the Office of the National Cyber Director. ``(vi) Two officials from the Department of Justice, one of which shall be one from the Federal Bureau of Investigation. ``(vii) Two officials from the Department of Commerce, one of which shall be from the National Institute of Standards and Technology and one of which shall be from the Bureau of Industry and Security.

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