Sec. 852. Supply chain illumination incentives
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Section 849 of the Servicemember Quality of Life Improvement and National Defense Authorization Act for Fiscal Year 2025 ( Public Law 118–159 ; 10 U.S.C. 3241 note prec.) is amended— in subsection (a), by striking to assess and monitor and all that follows and inserting the following: to implement and use supply chain illumination meeting the minimum qualifying criteria determined by the Secretary under subsection (c). ; and by adding at the end the following new subsections:
The Secretary of Defense shall establish minimum qualifying criteria for supply chain illumination for contractors of the Department of Defense. Not later than April 1, 2026, the Secretary of Defense shall publish in the Federal Register a notice of the minimum qualifying criteria established under paragraph (1). If a contractor discloses to the relevant contracting officer that a covered end item was or will be provided by such contractor to the Department of Defense under a contract or other agreement, such contracting officer may continue to accept and pay for delivery of such covered end item until a waiver authorized under each applicable covered statute with respect to such covered end item is granted or denied if— such contractor has supply chain illumination that meets the minimum qualifying criteria established by the Secretary of Defense under subsection (c); and such contracting officer determines that such covered end item— other than a prohibition on acquisition under a covered statute applying to such covered end item, satisfies the requirements of the contract or other agreement; and does not pose a risk to security or safety.
A contractor of the Department of Defense shall, upon identifying a nonconforming item in a covered end item that was or will be provided by such contractor to the Department under a contract or other agreement, immediately begin taking corrective action with respect to the inclusion of such nonconforming item in such covered end item in accordance with such contract or other agreement and the relevant procedures of the Department. The corrective action described in paragraph
(1)with respect to a nonconforming item in a covered end item shall include the contractor using reasonably expedient means to identify, and if necessary, qualify an alternative supplier to provide materials or goods to use in place of such non-conforming item in such end item. In this section: The term covered statute means— section 4863 of this title; section 4872 of this title; section 805 of the National Defense Authorization Act for Fiscal Year 2024 ( Public Law 118–31 ; 10 U.S.C. 4651 note prec.); or section 1211 of the National Defense Authorization Act for Fiscal Year 2006 ( Public Law 109–163 ; 10 U.S.C. 4651 note prec.). The term covered end item means an end item the acquisition of which is prohibited under a covered statute based on a nonconforming item that is contained in or a component of such end item, except that such term does not include an end item that is a non-conforming item. The term end item has the meaning given such term in section 4863(m) of this title. The term nonconforming item means a material or good the inclusion of which in an end item causes the acquisition of such end item to be prohibited under a covered statute. The term supply chain illumination means policies, procedures, and tools, including analytical tools that leverage large data and machine learning, enabling such contractor to assess and monitor the entire supply chain of such contractor to identify potential vulnerabilities and security and noncompliance risks with respect to goods and services provided to the Department of Defense. . Not later than one year after the date of the enactment of this Act, and annually thereafter until the date that is five years after the date of the enactment of this Act, the Secretary of Defense shall submit to the congressional defense committees a report describing each use of the authority under section 849(d) of the Servicemember Quality of Life Improvement and National Defense Authorization Act for Fiscal Year 2025 ( Public Law 118–159 ; 10 U.S.C. 3241 note prec.), as added by subsection (a).
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- Pub. L. 109-163
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Sec. 852
Supply chain illumination incentives
Pub. L.Pub. L. 109-163
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