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

Subtitle B—Amendments to General Contracting Authorities, Procedures, and Limitations.

P. L. 116-

House Conference Report   116-617

``(v) A requirement for the Secretary to require reports and conduct examinations on a periodic basis of covered contractors or subcontractors in order to assess compliance with the requirements of this section.''.

(b) Contract Requirements, Administration, and Oversight Relating to Foci.--Subparagraph (C) of such section is amended--

(1) by redesignating clause (iv) as clause (v); and

(2) by inserting after clause (iii) the following new clause:

``(iv) Procedures for appropriately responding to changes in covered contractor or subcontractor beneficial ownership status based on changes in disclosures of their beneficial ownership and whether they are under FOCI and the reports and examinations required by subparagraph (A)(v).''.

(c) Timelines and Milestones for Implementation.--

(1) Implementation plan.--Not later than March 1, 2021, the Secretary of Defense shall provide to the congressional defense committees a plan and schedule for implementation of the requirements of section 847 of the National Defense Authorization Act for Fiscal Year 2020 (Public Law 116-92; 133 Stat. 1505; 10 U.S.C. 2509 note), as amended by this section, including--

(A) a timeline for issuance of regulations, development of training for appropriate officials, and development of systems for reporting of beneficial ownership and FOCI by covered contractors or subcontractors;

(B) the designation of officials and organizations responsible for such implementation; and

(C) interim milestones to be met in implementing the plan and schedule.

(2) Revision of regulations, directives, guidance, training, and policies.--Not later than July 1, 2021, the Secretary of Defense shall revise relevant directives, guidance, training, and policies, including revising the Department of Defense Supplement to the Federal Acquisition Regulation, to fully implement the requirements of such section 847.

(3) Definitions.--In this subsection, the term ``beneficial ownership'', ``FOCI'', and ``covered contractors or subcontractors'' have the meanings given, respectively, in section 847 of the National Defense Authorization Act for Fiscal Year 2020 (Public Law 116-92; 133 Stat. 1505; 10 U.S.C. 2509 note).

(d) Technical Amendments.--Section 847 of the National Defense Authorization Act for Fiscal Year 2020 (Public Law 116-92; 133 Stat. 1505; 10 U.S.C. 2509 note), as amended by this section, is further amended--

(1) in subsection (b)--

(A) in paragraph (1), by striking ``contractors and subcontractors'' and inserting ``covered contractors or subcontractors''; and

(B) in paragraph (2)--

(i) by striking ``covered contractors and subcontractors'' each place it appears and inserting ``covered contractors or subcontractors'';

(ii) in subparagraph (B)(iii), by striking ``a contractor or subcontractor'' and inserting ``such a covered contractor or subcontractor''; and

(iii) in subparagraph (C)(ii), by striking ``section 831(c)'' and inserting ``section 2509(c) of title 10, United States Code''; and

(2) in subsection (c), by striking ``subsection (b)(2)(A) and (b)(2)(C)'' and inserting ``subsections (b)(2)(A) and (b)(2)(C)''.

The Senate amendment contained a provision (sec. 5894) that would modify section 847(b) of the National Defense Authorization Act for Fiscal Year 2020 (Public Law 116-92) by incorporating additional requirements for mitigating risks related to foreign ownership, control, or influence.

The House bill contained no similar provision.

The House recedes with an amendment that would direct the Department of Defense to establish contract administration procedures for appropriately responding to changes in contractor or subcontractor beneficial ownership status. The amendment would also clarify implementation timelines and correct a reference to existing law.