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TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED MATTERS

Subtitle A--Acquisition Policy and Management

P. L. 115-

House Conference Report. 115-404

(b) Elements.--The process under subsection (a) shall
include the following elements:

(1) Designation of a senior official responsible
for overseeing the development and implementation of
the process.

(2) Development or integration of tools to support
commercial due-diligence, business intelligence, or
otherwise analyze and monitor commercial activity to
understand business relationships with entities
determined to be threats to the United States.

(3) Development of risk profiles of products or
services based on commercial due-diligence tools and
data services.

(4) Development of education and training curricula
for the acquisition workforce that supports the
process.

(5) Integration, as needed, with intelligence
sources to develop threat profiles of entities
determined to be threats to the United States.

(6) Periodic review and assessment of software
products and services on computer networks of the
Department of Defense to remove prohibited products or
services.

(7) Synchronization of the use of current
authorities for making supply chain decisions,
including section 806 of Public Law 111-383 (10 U.S.C.
2304 note) or improved use of suspension and debarment
officials.

(8) Coordination with interagency, industrial, and
international partners, as appropriate, to share
information, develop Government-wide strategies for
dealing with significant entities determined to be
significant threats to the United States, and
effectively use authorities in other departments and
agencies to provide consistent, Government-wide
approaches to supply chain threats.

(9) Other matters as the Secretary considers
necessary.

(c) Notification.--Not later than 90 days after
establishing the process required by subsection (a), the
Secretary shall provide a written notification to the
Committees on Armed Services of the Senate and House of
Representatives that the process has been established. The
notification also shall include the following:

(1) Identification of the official designated under
subsection (b)(1).

(2) Identification of tools and services currently
available to the Department of Defense under subsection
(b)(2).

(3) Assessment of additional tools and services
available under subsection (b)(2) that the Department
of Defense should evaluate.

(4) Identification of, or recommendations for, any
statutory changes needed to improve the effectiveness
of the process.

(5) Projected resource needs for implementing any
recommendations made by the Secretary.

The House bill contained a provision (sec. 875) that would require the Director of National Intelligence to develop a list of telecommunications contractors who have been found to have knowingly assisted or facilitated a cyber attack carried out or on behalf of the government of the Democratic People’s Republic of Korea and would prohibit the Secretary of Defense from entering into a contract with any entity on this list.

The Senate amendment contained no similar provision.

The Senate recedes with an amendment that would require the Secretary of Defense to establish a process for enhancing scrutiny of acquisition decisions in order to improve the integration of supply chain risk management into the overall acquisition decision cycle.