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Changes with respect to the Federal Acquisition Security Council

Division A · Title XVIII: Revitalization of the Defense Industrial Base · Subtitle A: Provisions to Protect and Strengthen Supply Chains

Plain-language summaryAI

The Federal Acquisition Security Council is updated to include new definitions related to sources of concern and covered articles, including operational technology. The Council's membership is expanded and specified to include senior officials from various federal agencies with expertise in areas like cybersecurity and supply chain risk management. The President must designate a Chairperson, and the Chairperson is required to meet at least twice a year with key national security leaders or their delegates.

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Section Text · Sec. 1804.
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(a) Definition of source of concern, covered source of concern, recommended order, and designated order

Section 1321 of title 41, United States Code, is amended—

(1)

by amending paragraph (3) to read as follows:

(3) Covered article

The term covered article —

(A)

has the meaning given that term in section 4713; and

(B)

includes operational technology (as defined in section 3 of the Internet of Things Cybersecurity Improvement Act of 2020 ( Public Law 116–207 ; 15 U.S.C. 278g–3a )).

(2)

by redesignating paragraphs (5) through (8) as paragraphs (7) through (10), respectively;

(3)

by inserting after paragraph (4) the following:

(5) Covered source of concern

The term covered source of concern means a source of concern that sells, produces, or is involved in the development of a covered article that is designated in section 1328(c) as a statutorily designated covered article.

(6) Designated order

The term designated order means an order described under section 1323(c)(3).

(4)

by adding at the end the following:

(11) Recommended order

The term recommended order means an order recommended under section 1323(c)(2).

(12) Source of concern

(A) In general

The term source of concern means a source—

(i)

subject to the jurisdiction, direction, or control of the government of a foreign adversary, or operates on behalf of the government of a foreign adversary; or

(ii)

that poses a risk to the national security of the United States based on collaboration with, whole or partial ownership or control by, or being affiliated with a military, internal security force, or intelligence agency of a foreign adversary.

(B) Foreign adversary defined

In this paragraph, the term foreign adversary has the meaning given the term covered nation in section 4872(d) of title 10.

(b) Establishment and members of council

Section 1322 of title 41, United States Code, is amended—

(1)

in subsection (a), by striking executive branch and inserting Executive Office of the President ;

(2)

in subsection (b)—

(A)

by amending paragraph (1) to read as follows:

(1) In general

The members of the Council shall be as follows:

(A)

The Administrator for Federal Procurement Policy.

(B)

The Deputy Director for Management of the Office of Management and Budget.

(C)

The following officials, each of whom shall occupy a position at the level of Assistant Secretary or Deputy Assistant Secretary (or equivalent):

(i)

Two officials from the Office of the Director of National Intelligence, one of which shall be from the National Counterintelligence and Security Center.

(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.

(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.

(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.

(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).

(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

(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.

(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

(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.

(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).

(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).

(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.

(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.

(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.

(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—

(ii) Contents of order

Any order provided under clause (i) shall include—

(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—

(ii) Effective date considerations

Any effective date prescribed by the Council for an order issued pursuant to clause (i) shall take into account—

(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).

(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—

(ii) Order

Not later than 90 days after receiving a recommended order, the officials described under clause (iii) shall—

(iii) Officials

The officials described in this clause are as follows:

(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—

(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:

(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.

(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—

(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.

(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—

(v)

in subparagraph (D), as so redesignated—

(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. .

(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 .

(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 .

(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—

(g) Additional provisions

Section 1328 of title 41, United States Code, is amended to read as follows:

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).

(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.

(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. 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.

(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 Policy, and other appropriate personnel of the Department of Defense are informed of the activities of the Council in a timely manner.

(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:

(2)

by striking of this title each place the term appears.