Sec. 3115. Enhanced procurement authority to manage supply chain risk

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Subtitle A of title XLVIII of the Atomic Energy Defense Act ( 50 U.S.C. 2781 et seq. ) is amended by adding at the end the following: Subject to subsection (b), a covered official may— carry out a covered procurement action; and notwithstanding any other provision of law, limit, in whole or in part, the disclosure of information relating to the basis for carrying out a covered procurement action. Before exercising the authority under subsection (a), a covered official shall— obtain a joint recommendation by the Deputy Secretary of Energy and the Chief Information Officer of the Department of Energy, on the basis of a risk assessment conducted by the Office of Intelligence and Counterintelligence of the Department of Energy, that there is a significant supply chain risk to a covered system; make a determination in writing, with the concurrence of the Deputy Secretary of Energy, that— carrying out a covered procurement action under subsection (a)(1) is necessary to protect national security by reducing supply chain risk; less intrusive measures are not reasonably available to reduce such supply chain risk; and if the covered official plans to limit disclosure of information under subsection (a)(2), the risk to national security that may result from the disclosure of such information is greater than such risk that may result from not disclosing such information; and submit to the congressional defense committees, the Committee on Energy and Natural Resources of the Senate, and the Committee on Energy and Commerce of the House of Representatives written notification of— the joint recommendation under paragraph (1), including a summary of the risk assessment by the Office of Intelligence and Counterintelligence that serves as the basis for such joint recommendation; the determination under paragraph (2), including— a summary of the basis for such determination; and a discussion of the less intrusive measures that were considered under subparagraph

(B)of such paragraph and the reason that the official determined such measures to not be reasonably available; and the information required by section 2304(f)(3) of title 10, United States Code. If a covered official exercises the authority under subsection (a), the covered official shall— notify appropriate parties of the covered procurement action and the basis for such action only to the extent necessary to carry out the covered procurement action; notify other elements of the Department of Energy or other departments or agencies of the United States that are responsible for procurement that may be subject to the same or similar supply chain risk of the covered procurement action, consistent with the requirements of national security; and ensure the confidentiality of any notification made under paragraph

(1)or (2). A covered official may not delegate the authority provided under this section to an official of the Department of Energy below the level of the Deputy Assistant Secretary of Energy. In this section: The term covered item of supply means an item that is purchased for inclusion in a covered system, and the loss of integrity of which could result in a supply chain risk for a covered system. The term covered official means any of the following: The Under Secretary of Energy. The Under Secretary of Energy for Science. The Administrator for Nuclear Security. The Administrator of the Energy Information Administration. The Administrator of the Bonneville Power Administration. The Administrator of the Southeastern Power Administration. The Administrator of the Southwestern Power Administration. The Administrator of the Western Area Power Administration. The Chief Information Officer of the Department of Energy. The term covered procurement means— a source selection for a covered system or a covered item of supply involving either a performance specification, as described in paragraph (1)(C)(ii) of section 2305(a) of title 10, United States Code, or an evaluation factor, as described in paragraph (2)(A) of such section, relating to supply chain risk; the consideration of proposals for and issuance of a task or delivery order for a covered system or a covered item of supply if the task or delivery order contract concerned includes a contract clause establishing a requirement relating to supply chain risk; or any contract action involving a contract for a covered system or a covered item of supply if such contract includes a clause establishing requirements relating to supply chain risk. The term covered procurement action means, with respect to an action that occurs in the course of conducting a covered procurement, any of the following: The exclusion of a source that fails to meet qualification standards established in accordance with the requirements of section 2319 of title 10, United States Code, for the purpose of reducing supply chain risk in the acquisition of covered systems. The exclusion of a source that fails to achieve an acceptable rating with respect to an evaluation factor providing for the consideration of supply chain risk in the evaluation of proposals for the award of a contract or the issuance of a task or delivery order. The withholding of consent for a contractor to subcontract with a particular source or the direction to a contractor for a covered system to exclude a particular source from consideration for a subcontract under the contract. The term covered system means— nuclear weapons; components of nuclear weapons; items associated with the design, development, production, and maintenance of nuclear weapons or components of nuclear weapons; and items associated with the surveillance of the nuclear weapon stockpile; and any national security system (as defined in section 3542(b)(2) of title 44, United States Code). The term supply chain risk means the risk that an adversary may sabotage, maliciously introduce an unwanted function, or otherwise subvert the design, integrity, manufacturing, production, distribution, installation, operation, or maintenance of a covered system so as to surveil, deny, disrupt, or otherwise degrade the function, use, or operation of such system. . The table of contents at the beginning of such Act is amended by inserting after the item relating to section 4805 the following new item: Sec. 4806. Enhanced procurement authority to manage supply chain risk. . Section 4806 of the Atomic Energy Defense Act, as added by subsection (a), shall apply with respect to— contracts that are awarded on or after the date that is 180 days after the date of the enactment of this Act; and task and delivery orders that are issued on or after the date that is 180 days after such date of enactment under contracts awarded before, on, or after such date of enactment.

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50 USC 2781

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Sec. 3115

Enhanced procurement authority to manage supply chain risk

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