← 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…

CREC-2026-07-21-PT1-PGH4736 · READ IN THE CONGRESSIONAL RECORD

(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…

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(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. SEC. 1816. ASSESSMENT OF RISK RELATED TO ADVERSARIAL CAPITAL IN THE DEFENSE INDUSTRIAL BASE. (a) Designation.--Not later than 90 days after the date of the enactment of this Act, the Secretary of Defense shall designate an office within the Office of Industrial Base Policy with primary responsibility for assessing and mitigating risks related to the use of adversarial capital by the entities in the national technology and industrial base (as defined in section 4801 of title 10, United States Code).

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  2. (b) Briefing Required.--Not later than March 1, 2027, the Assistant Secretary of Defense for Industrial Base Policy shall provide to the congressional defense committees a briefing detailing-- (1) the reliance of the United States on imports or scrap for aluminum production, including reliance on foreign adversaries or other foreign sources that are at risk of supply chain disruption; (2) the current alumina and primary aluminum production capacity in the United States and a near- and long-term assessment of the robustness of such capacity; (3) the status and risks facing advanced aluminum fabrication facilities that are an essential part of the defense industrial base; (4) insights and findings from the ``Aluminum Wargame'' executed by the Defense Logistics Agency under the Defense Logistics Agency Industrial Base Campaign of Learning series; (5) an assessment of the need for large-scale aluminum extrusion capabilities in the United States to support current and projected national defense requirements; (6) an assessment of workforce, permitting, infrastructure, and energy considerations associated with sustaining or expanding large-scale aluminum extrusion capabilities in the United States; (7) opportunities for increased secondary aluminum production in the United States to increase domestic defense- grade aluminum production; and (8) policy, acquisition, or investment options the Secretary of Defense is undertaking or considering to mitigate identified risks or gaps in domestic aluminum extrusion capacity, including potential public-private partnerships or other industrial base support mechanisms, as appropriate.

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  3. (a) Report.--Upon enactment of this Act, the Under Secretary of Defense for Acquisition and Sustainment shall transmit to the congressional defense committees the report titled ``Primary Aluminum Sector Industrial Base Assessment Report'' issued by the Industrial Analysis Division of the Defense Contract Management Agency and submitted to the Assistant Secretary of Defense for Industrial Base Policy on April 9, 2025.

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  4. (2) Form.--The report required under this subsection shall be submitted in unclassified form, but may include a classified annex. (h) Definitions.--In this section, the terms ``covered article'', ``designated order'', ``Federal Acquisition Security Council'', ``foreign adversary'', ``recommended order'', and ``source of concern'' have the meanings given, respectively, in section 1322 of title 41, United States Code (as amended by section 1804 of this Act) in that term in section 1321(3) of title 41, United States Code (as amended by section 1804 of this Act). SEC. 1815. REPORT ON PRIMARY ALUMINUM SECTOR INDUSTRIAL BASE ASSESSMENT.

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  5. (g) Report.-- (1) In general.--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-- (A) an assessment by the Secretary regarding national security risks posed by the procurement or use of optical fiber and optical fiber cable produced or assembled by an entity that is a source of concern based on such entity's affiliation with the People's Republic of China; (B) an assessment of the extent to which such optical fiber is present in, or procured for information networks or communications systems of the Department of Defense, or the networks of Department of Defense contractors and subcontractors; (C) an assessment of the availability of alternative sources of optical fiber from domestic suppliers or suppliers from a country that is not a foreign adversary; (D) an update on the status of the recommendation for evaluation made in accordance with subsection (b); (E) an update on any recommended order or designated order issued or under consideration by the Federal Acquisition Security Council with respect to optical fiber or optical fiber cable from any source of concern affiliated with the People's Republic of China; and (F) any actions taken or recommended to be taken by the Secretary to mitigate risks identified under subparagraph (A), including any proposed amendments to the Department of Defense Supplement to the Federal Acquisition Regulation.

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  6. (f) Scope of Evaluation.--The recommendation under subsection (b) shall specifically request that the Federal Acquisition Security Council evaluation under paragraph (1) of such subsection consider, at a minimum-- (1) whether an entity that produces or assembles optical fiber and optical fiber cable in the People's Republic of China would meet the definition of source of concern; and (2) potential vectors for intelligence collection, disruption, or degradation of national security communications through optical fiber infrastructure procured from such an entity.

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  7. (d) Effective Date.--This section shall apply to contracts awarded on and after October 1 of the first fiscal year beginning after the date of the enactment of this Act. (e) FASC Recommendation.--Not later than 90 days after the date of the enactment of this Act, the Secretary of Defense shall direct the Department of Defense official serving on the Federal Acquisition Security Council to formally recommend that the Council-- (1) evaluate optical fiber and optical fiber cable (including fiber optic cable assemblies) sold, produced, or developed by any entity that constitutes a source of concern due to the relationship of the entity to the People's Republic of China; and (2) determine, based on such evaluation, whether to issue a recommended order with respect to such source of concern, or any covered article sold, produced, or developed by such source of concern.

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  8. (c) Waiver Authority.-- (1) In general.--The Secretary of Defense may waive the prohibition under subsection (a) on a case-by-case basis if the Secretary determines that-- (A) the waiver is necessary for the national security interests of the United States; and (B) no practicable alternative exists from a source not described in subsection (a). (2) Limitation.--A waiver granted under this subsection shall be limited in time and in scope to the minimum extent necessary. (3) Notice.--Not later than 30 days after granting a waiver, the Secretary shall submit written notice to the Committee on Armed Services of the Senate and the Committee on Armed Services of the House of Representatives describing-- (A) the justification for the waiver; (B) the duration and scope of the waiver; and (C) the plan to transition to compliant materials.

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  9. (3) The term ``professional services'' includes one or more of the following services: (A) Engineering. (B) Architecture. (C) Design. (D) Environmental consulting. (E) Financial consulting. (F) Program management. (G) Legal. SEC. 1814. PROHIBITION ON THE USE OF CHINESE-MANUFACTURED OPTICAL FIBER BY THE DEPARTMENT OF DEFENSE. (a) Prohibition.--The Secretary of Defense may not procure or obtain optical fiber and optical fiber cable produced, manufactured, or assembled by an entity that is owned by, controlled by, or subject to the jurisdiction or direction of the People's Republic of China for use in Department of Defense information networks or communications systems. (b) Covered Optical Fiber Defined.--In this section, the term ``covered optical fiber'' means single-mode or multi- mode optical fiber and optical fiber cable.

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  10. (d) Definitions.--In this section: (1) The term ``foreign entity'' has the meaning given in section 225.772-1 of the Department of Defense Supplement to the Federal Acquisition Regulation (or a successor regulation). (2) The term ``United States company''-- (A) means a business entity that-- (i) is organized under the laws of a State, the District of Columbia, or a territory or possession of the United States; [[Page H4882]] (ii) has its principal place of business located in the United States, the District of Columbia, or a territory or possession of the United States; and (iii) is not directly or indirectly owned and controlled by a foreign entity; and (B) includes a joint venture for which a business entity described in subparagraph (A) holds an ownership interest greater than or equal to 50 percent.

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  11. (c) Reports.--Beginning on March 1, 2028, and annually thereafter through March 1, 2031, the Secretary of Defense shall submit to the congressional defense committees a report that includes-- (1) a description of the effectiveness of the preference described in subsection (a) in improving acquisition outcomes in the procurement of professional services; (2) the effect of such preference on the number of domestic entities providing professional services to the Department of Defense; and (3) a summary of instances during the calendar year preceding the date of submission of the report where such preference was not applied, along with rationale for not applying such preference.

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  12. (b) Relationship to Other Preferences.--The preference established under subsection (a) shall not take priority over any preference for procurement from the procurement list established pursuant to section 8503 of title 41, United States Code, the Federal Prison Industries catalog described under section 4124(d) of title 18, United States Code, or under the Small Business Act (15 U.S.C. 631 et seq.).

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  13. (a) Establishment of Preference.--Not later than 180 days after the date of the enactment of this Act, the Secretary of Defense shall revise the Department of Defense Supplement to the Federal Acquisition Regulation to ensure that with respect to contracts for the procurement of professional services, a contracting officer-- (1) shall establish a preference for offerors that are United States companies, to the maximum extent practicable and consistent with the interests of national security; and (2) may elect not to apply such preference if the contracting officer provides documentation, including a rationale, for not applying the preference, which may include evidence-- (A) that the Secretary of Defense prioritized the urgency of the procurement or delivery of professional services over such preference; (B) that no United States company is capable of fulfilling the requirements of the contract in a timely or cost- effective manner; or (C) of other circumstances determined by the Secretary.

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  14. (3) No automatic rescission.--Removal from the CMC List shall not automatically rescind an exclusion order. (e) Existing Designees.--Not later than 90 days after the date of the enactment of this Act, the Secretary of Defense shall transmit to the Council a written referral under subsection (b)(1) for each entity already appearing on the CMC List for which no exclusion order is in effect. SEC. 1813. DOMESTIC PREFERENCE IN THE PROCUREMENT OF PROFESSIONAL SERVICES.

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  15. (2) Recommendation to the president.--If, as a result of the review, the Council determines to issue such a recommendation, the Council shall transmit the recommendation to the President not later than 90 days after the date on which the Council completes the review. (3) Scope.--The recommendation shall apply Government-wide and include subsidiaries and affiliates identified in the referral. (d) Removal From CMC List.-- (1) Notice.--Not later than 90 days after determining to remove an entity from the CMC List, the Secretary of Defense shall notify the Council of the determination and provide the basis for the determination. (2) Review.--Upon receipt of such a notice, the Council shall review whether to transmit to the President a recommendation to rescind or modify the exclusion order.

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  16. (c) Required Council Action.-- (1) Review required.--Upon receipt of a referral under subsection (b), the Council shall use the information provided in the referral and any other information the Council determines appropriate under section 1323(c) of title 41, United States Code, to review whether to issue a recommendation to the President for an exclusion order prohibiting executive agencies from procuring covered articles produced or provided by the designated entity. The Council shall complete such review not later than 270 days after the date on which the Council receives the referral.

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  17. (b) Mandatory Referral by the Secretary of Defense.-- (1) In general.--Not later than 90 days after determining to add an entity to the CMC List, the Secretary of Defense shall transmit to the Council a written referral recommending that the Council recommend an exclusion order for covered articles produced or provided by such entity. (2) Contents.--Each referral shall include-- (A) identification of the entity, including known subsidiaries and affiliates; (B) the basis for the determination under such section 1260H, consistent with protection of intelligence sources and methods; and (C) any additional information relevant to the Council's assessment of whether to recommend an exclusion order for covered articles produced or provided by such entity.

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  18. (a) Definitions.--In this section: (1) CMC list.--The term ``CMC List'' means the list of Chinese military companies operating in the United States under section 1260H of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 (10 U.S.C. 113 note). (2) Covered article.--The term ``covered article'' has the meaning given such term in section 1321 of title 41, United States Code. (3) Exclusion order.--The term ``exclusion order'' means an order referred to in section 1323(c)(1)(A) of title 41, United States Code. (4) Council.--The term ``Council'' means the Federal Acquisition Security Council established under section 1322(a) of title 41, United States Code.

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  19. (4) The term ``covered transaction'' means any Department of Defense contract, subcontract, cooperative agreement, grant, or other transaction with a value greater than $10,000,000. (5) The term ``critical supply dependency'' means a step in a supply chain for a biotechnology equipment or service characterized by a limited supplier base consisting entirely or almost entirely of covered foreign entities, such that disruption from a single covered foreign entity or a small set of covered foreign entities is likely to materially impair the availability of functionally interchangeable biotechnology equipment or services. SEC. 1812. FEDERAL ACQUISITION SECURITY COUNCIL EXCLUSION ORDERS FOR CHINESE MILITARY COMPANY DESIGNEES.

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  20. (b) Definitions.--In this section: (1) The term ``appropriate congressional committees'' means-- (A) the Committee on Armed Services of the House of Representatives; and (B) the Committee on Armed Services of the Senate. (2) The terms ``biotechnology company of concern'', ``biotechnology equipment or service'', and ``foreign adversary'' have the meaning givens, respectively, in section 851 of the National Defense Authorization Act for Fiscal Year 2026 (Public Law 119-60). (3) The term ``covered foreign entity'' means an entity including any subsidiary thereof, organized under the laws of a foreign country if either the principal place of business of such entity is in a foreign adversary or the equity securities of the entity are primarily traded on one or more exchanges based in a foreign adversary.

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  21. (3) Annex contents.--The classified annex required under paragraph (1) shall, for biotechnology equipment and services described in paragraph (1)-- (A) identify any covered foreign entities analyzed in the report that the Secretary of Defense has recommended or is considering recommending to the Office of Management and Budget for designation as a biotechnology company of concern to inform that recommendation; (B) describe any additional legislative authorities or resource requirements necessary to adequately assess the vulnerability of supply chains for biotechnology equipment and services that contributes to the defense industrial base, including funding, personnel, data access, and technical infrastructure; and (C) elaborate as necessary on the contents of the unclassified report.

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  22. (2) Report contents.--The unclassified report required under paragraph (1) shall, for biotechnology equipment and services described in such paragraph-- (A) describe the supply chains for such biotechnology equipment and services, including an analysis of critical supply dependencies for such supply chains and the overall vulnerability of such supply chains to geopolitical risk stemming from critical supply dependencies; (B) identify the value of such biotechnology equipment and services, both in absolute numbers and as a percentage of the total value of such biotechnology equipment and services, where the supply chain for such biotechnology equipment or service contained at least one critical supply dependency; (C) list the types of such biotechnology equipment or services with critical supply dependencies in defense industrial base supply chains that, if compromised, would cause significant potential disruption to military readiness; and (D) identify the top five percent of covered transactions for biotechnology equipment and services, as measured by the total expected value over the life of the transaction for biotechnology equipment or services obtained or funded by the Department of Defense for which the supply chains contain at least one critical supply dependency.

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  23. (a) Annual Reports.-- (1) In general.--Not later than March 1, 2028, and annually thereafter until 2032, the Secretary of Defense shall submit to the appropriate congressional committees an unclassified report with a classified annex that assesses, during the year preceding the date of the report, the extent to which the supply chains for biotechnology equipment and services obtained or funded by the Department of Defense through covered transactions contain critical supply dependencies.

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  24. (2) The term ``foreign ownership, control, or influence'' refers to ownership structures, governance arrangements, financial relationships, or other mechanisms through which a foreign person or entity may direct, materially influence, or control a supplier or sub-tier entity within the defense industrial base. (3) The term ``economic security risks'' means risks arising from supply chain fragility, economic coercion by a covered nation including financing by a covered nation, or other vulnerabilities in a commercial supply chain that may adversely affect national security. SEC. 1811. IDENTIFICATION OF SUPPLY CHAIN DEPENDENCIES.

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  25. (2) Annual report.--Not later than one year after the date on which the Program is established, and annually thereafter for five years, the Secretary shall submit to the congressional defense committees a report that includes-- (A) an assessment of the effectiveness of the Program in improving the Department's ability to illuminate, assess, anticipate, and respond to [[Page H4881]] risks across the defense industrial base supply chain; and (B) any additional legislative, regulatory, or policy recommendations necessary to strengthen defense industrial base resilience. (g) Definitions.--In this section: (1) The term ``covered nation'' has the meaning given such term in section 4872 of title 10, United States Code.

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  26. (f) Reporting Requirements.-- (1) Initial report.--Not later than April 1, 2027, the Secretary shall submit to the congressional defense committees a report describing-- (A) progress made in implementing the Program; (B) integration of Program activities with existing Industrial Base Analysis and Sustainment activities and supply chain risk management activities; and (C) resource requirements, including funding, personnel, data access, and technical infrastructure.

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  27. (e) Commercial Technology Utilization.--The Secretary shall ensure that any advanced data analytics and artificial intelligence capabilities or tools to support the Program are procured-- (1) in accordance with the preference for commercial products and commercial services under section 3453 of title 10, United States Code; (2) in accordance with the requirements to use competitive procedures under applicable law and the Department of Defense Supplement to the Federal Acquisition Regulation; and (3) in a manner that provides the Department with flexibility to adapt procurement strategies to Program needs, evolving market conditions, and advances in technology throughout the life of the Program.

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  28. (B) A plan of action for successful implementation of the framework developed under paragraph (2). (C) Recommendations for employment of advanced data analytics and artificial intelligence capabilities or tools to support and enable Program activities, including capabilities such as-- (i) mapping of multi-tier supply chains across the defense industrial base, including domestic and international supplier networks; (ii) identifying and linking entities across public records, corporate registries, trade data, and other commercial datasets to identify foreign ownership, control, or influence; (iii) highlighting supplier concentration, single-point dependencies, and other structural risk indicators; and (iv) modeling and forecasting of supply chain disruptions and economic security risks.

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  29. (d) Implementation.--In implementing this section, the Assistant Secretary of Defense for Industrial Base Policy shall, in consultation with the Assistant Secretary of Defense for Sustainment and not later than 365 days after the date of the enactment of this Act-- (1) perform an identification and assessment of the supply chain illumination efforts, supply chain risk management activities, and policies of the Department of Defense, along with annual funding profiles associated with such efforts, activities and policies; (2) develop a common framework across the Department of Defense and with contractors of the Department to enable a holistic and coordinated approach for identifying managing risks within defense supply chains; and (3) provide the Secretary of Defense the following: (A) Findings and recommendations based on the assessment performed under paragraph (1), including recommendations related to expansion, consolidation, or cancellation of identified supply chain illumination efforts and supply chain risk management activities.

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  30. (c) Activities.--The Program shall-- (1) identify and characterize supplier concentration, single-point dependencies, structural vulnerabilities, and risks arising from foreign ownership, control, or influence; (2) inform Department of Defense policy and funding decisions intended to enable rapid, scalable response to supply chain vulnerabilities, including creation of stockpiles and identification of alternative domestic suppliers and surge capacity; and (3) support and inform Department of Defense efforts to reduce reliance on covered nations for supply chains essential to the national defense.

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  31. (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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  32. (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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  33. (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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  34. (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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  35. (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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  36. (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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  37. (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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  38. (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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  39. (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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  40. (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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  41. (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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  42. (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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  43. (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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  44. (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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  45. (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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  46. 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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  47. (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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  48. (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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  49. (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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  50. 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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