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

Subtitle F—Industrial Base Matters

P. L. 117-81

Joint Explanatory Statement

(a) In General.--Section 2533d of title 10, United States Code, is amended--

(1) in subsection (a)--

(A) in paragraph (1), by striking ``January 1, 2023'' and inserting ``the date determined under paragraph (3)''; and

(B) by adding at the end the following new paragraph:

``(3) Paragraph (1) shall take effect on January 1, 2027.'';
(2) in subsection (c)--

(A) in paragraph (2)--

(i) in the matter preceding subparagraph (A), by inserting ``specified type of'' after ``means any'';

(ii) in subparagraph (A), by striking ``(as such terms are defined under sections 103 and 103a of title 41, respectively)''; and

(iii) by amending subparagraph (B) to read as follows:

``(B) is a component of--

``(i) a defense security system; or

``(ii) a system, other than a defense security system, that transmits or stores information and which the Secretary identifies as national security sensitive in the contract under which such printed circuit board is acquired.''; and

(B) by adding at the end the following new paragraphs:

``(4) Commercial product; commercial service; commercially available off-the shelf item.--The terms `commercial product', `commercial service', and `commercially available off-the-shelf item' have the meanings given such terms in sections 103, 103a, and 104 of title 41, respectively.

``(5) Defense security system.--

``(A) The term `defense security system' means an information system (including a telecommunications system) used or operated by the Department of Defense, by a contractor of the Department, or by another organization on behalf of the Department, the function, operation, or use of which--

``(i) involves command and control of an armed force;

``(ii) involves equipment that is an integral part of a weapon or weapon system; or

``(iii) subject to subparagraph (B), is critical to the direct fulfillment of military missions.

``(B) Subparagraph (A)(iii) does not include a system that is to be used for routine administrative and business applications (including payroll, finance, logistics, and personnel management applications).

``(6) Specified type.--The term `specified type' means a printed circuit board that is--

``(A) a component of an electronic device that facilitates the routing, connecting, transmitting or securing of data and is commonly connected to a network, and

``(B) any other end item, good, or product specified by the Secretary in accordance with subsection (d)(2).''; and (3) by amending subsection (d) to read as follows:

``(d) Rulemaking.--

``(1) The Secretary may issue rules providing that subsection (a) may not apply with respect to an acquisition of commercial products, commercial services, and commercially available off-the-shelf items if--

``(A) the contractor is capable of meeting minimum requirements that the Secretary deems necessary to provide for the security of national security networks and weapon systems; including, at a minimum, compliance with section 224 of the National Defense Authorization Act for Fiscal Year 2020 (Public Law 116-92; 10 U.S.C. 2302 note); and

``(B) either--

``(i) the Government and the contractor have agreed to a contract requiring the contractor to take certain actions to ensure the integrity and security of the item, including protecting the item from unauthorized access, use, disclosure, disruption, modification, or destruction; or

``(ii) the Secretary has determined that the contractor has adopted such procedures, tools, and methods for identifying the sources of components of such item, based on commercial best practices, that meet or exceed the applicable trusted supply chain and operational security standards of the Department of Defense.

``(2) The Secretary may issue rules specifying end items, goods, and products for which a printed circuit board that is a component thereof shall be a specified type if the Secretary has promulgated final regulations, after an opportunity for notice and comment that is not less than 12 months, implementing this section.

``(3) In carrying out this section, the Secretary shall, to the
maximum extent practicable, avoid imposing contractual
certification requirements with respect to the acquisition of
commercial products, commercial services, or commercially available
off-the-shelf items.''.

(b) Modification of Independent Assessment of Printed Circuit Boards.--Section 841(d) of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 (Public Law 116-283) is amended--

(1) in paragraph (1)--

(A) by striking ``the date of enactment of this Act'' and inserting ``the date of the enactment of the National Defense Authorization Act for Fiscal Year 2022'';

(B) by striking ``shall seek to enter'' and inserting ``shall enter'';

(C) by striking ``to include printed circuit boards in commercial products or services, or in'' and inserting ``to include printed circuit boards in other commercial or''; and

(D) by striking ``the scope of mission critical'' and all that follows through the period at the end and inserting ``types of systems, other than defense security systems (as defined in section 2533d(c) of title 10, United States Code), that should be subject to the prohibition in section 2533d(a) of title 10, United States Code.'';

(2) in the heading for paragraph (2), by striking ``department of defense'' and inserting ``Department of defense'';

(3) in paragraph (2), by striking ``one year after entering into the contract described in paragraph (1)'' and inserting ``January 1, 2023'';

(4) in the heading for paragraph (3), by striking ``congress'' and inserting ``Congress''; and

(5) in paragraph (3), by inserting after ``the recommendations of the report.'' the following: ``The Secretary shall use the report to determine whether any systems, other than defense security systems (as defined in section 2533d(c) of title 10, United States Code), or other types of printed circuit boards should be subject to the prohibition in section 2533d(a) of title 10, United States Code.''.

The House bill contained a provision (sec. 843) that would amend section 2533d of title 10, United States Code, and section 841 of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 (Public Law 116-283), which prohibited acquisitions of certain printed circuit boards by the Department of Defense.

The Senate amendment contained a similar provision (sec.836) that would require that certain providers of systems to the Department of Defense disclose the source of printed circuit boards when sourced from certain countries.

The agreement includes the House provision.

H. R. 4350--House Report 117-118

Section 843--Modifications to Printed Circuit Board Acquisition Restrictions

This section would amend section 2533d of title 10, United States Code, and section 841 of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 (Public Law 116-283), which prohibited acquisitions of certain printed circuit boards by the Department of Defense.

S. 2792--Senate Report117-39

Requirement that certain providers of systems to Department of Defense disclose the source of printed circuit boards when sourced from certain countries (sec. 836)

The committee recommends a provision that would require that certain providers of systems to the Department of Defense disclose the source of printed circuit boards when sourced from certain countries.