Sec. 826. Additional requirements pertaining to printed circuit boards
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Beginning in fiscal year 2023, the Secretary of Defense shall require that any contractor or subcontractor that provides covered printed circuit boards for use by the Department of Defense to certify that, of the total value of the covered printed circuit boards provided by such contractor or subcontractor pursuant to a contract with the Department of Defense, not less than the percentages set forth in subsection
(b)were manufactured and assembled within a covered country. In making a certification under subsection (a), a contractor or subcontractor shall use the following percentages: During fiscal years 2023 through 2027, the greater of— 50 percent; or 75 percent, if the Secretary of Defense has determined that suppliers in covered countries are capable of supplying 75 percent of Department of Defense requirements for printed circuit boards. During fiscal years 2028 through 2032, the greater of— 75 percent; or 100 percent, if the Secretary of Defense has determined that suppliers in covered countries are capable of supplying 100 percent of Department of Defense requirements for printed circuit boards. Beginning in fiscal year 2033, 100 percent. In the event that a contractor or subcontractor is unable to make the certification required under subsection (a), the Secretary may accept covered printed circuit boards from such contractor or subcontractor for up to 1 year while requiring the contractor to complete a remediation plan. Such a plan shall be submitted to the congressional defense committees and shall require the contractor or subcontractor that failed to make the certification required under subsection
(a)to— audit its supply chain to identify any areas of security vulnerability and noncompliance with section 224 of the National Defense Authorization Act for Fiscal Year 2020 ( Public Law 116–92 ); and meet the requirements of subsection
(a)within 1 year after the initial missed certification deadline. No contractor or subcontractor that has supplied covered printed circuit boards while under a remediation plan shall be eligible to enter into another remediation plan under subsection
(c)for a period of 5 years. The Secretary of Defense may waive the requirement under subsection
(a)with respect to a contractor or subcontractor if the Secretary determines that— there are no significant national security concerns regarding counterfeiting, quality, or unauthorized access created by accepting covered printed circuit boards under such waiver; and the contractor is otherwise in compliance with all relevant cybersecurity provisions relating to members of the defense industrial base, including section 224 of the National Defense Authorization Act for Fiscal Year 2020 ( Public Law 116–92 ). Subsection
(a)shall not apply to the extent that the Secretary of Defense or the Secretary of the military department concerned determines that covered printed circuit boards of satisfactory quality and sufficient quantity, in the required form, cannot be procured as and when needed from covered countries. In this section: The term covered country means— the United States; or a foreign country whose government has a memorandum of understanding or agreement with the United States that— where applicable, complies with the requirements of section 36 of the Arms Export Control Act ( 22 U.S.C. 2776 ) and with section 2457 of title 10, United States Code; and either— requires the United States to purchase supplies from foreign sources for the purposes of offsetting sales made the by United States Government or United States firms under approved programs serving defense requirements; or under which the United States and such government agree to remove barriers to purchase supplies produced in such foreign country or services performed by sources of such foreign country. The term covered printed circuit board means any printed circuit board that is— a product that is not a commercial product (as defined in section 103 of title 41, United States Code); or a commercial product (as defined in section 103 of title 41, United States Code), other than a commercially available off-the-shelf item (as defined in section 104 of title 41, United States Code) not described in subparagraph (B). The commercially available off-the-shelf items (as defined in section 104 of title 41, United States Code) described in this subparagraph are such items that are acquired under a contract with an award value that is greater than the micro-purchase threshold under section 2338 of title 10, United States Code, for use as an integral component in a system designed for— telecommunications, including data communications and fifth-generation cellular communications; data storage; medical applications; networking; computing; radar; munitions; or any other system that the Secretary of Defense determines should be covered under this section. The term subcontractor includes subcontractors at any tier.
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Sec. 826
Additional requirements pertaining to printed circuit boards
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