Sec. 863. Expedited acceptance program for supply chain illumination
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If a contractor, through the use of supply chain illumination policies, procedures, or analytical tools, discovers an item in the supply chain that is non-compliant with the restrictions outlined in subsection
(d)but promptly discloses that discovery to the program office, the contractor shall be eligible for an expedited interim national security waiver in accordance with subsection
(b)to deliver a capability, provided that the program manager is satisfied with the contractor’s corrective plan described in subsection (e). Disclosures that are eligible under paragraph
(1)include any disclosures made by the contractor to the program office, including disclosures resulting from supply chain illumination efforts conducted by the contractor, a sub-contractor, or by a third-party entity acting on behalf of the contractor or sub-contractor to increase supply chain transparency. Discoveries of non-compliance by the United States Government do not constitute eligible disclosures under paragraph (1). A waiver described under this subsection is a waiver issued by the Secretary of Defense or the Secretary concerned (as defined in section 101 of title 10, United States Code) to a restriction outlined under subsection
(d)allowing a contractor to— accept delivery of an end item that contains non-conforming items if the program manager determines the non-confirming part does not represent a security, safety, or flight risk; and make payment for the delivery of the end item. The authority to issue a waiver under paragraph
(1)may be delegated— in the case of a waiver for one or more acquisition programs within a military department, to the senior acquisition executive of that military department; and in the case of a waiver applicable to more than one military department, to the Deputy Secretary of Defense or the Under Secretary of Defense for Acquisition and Sustainment. An interim national security waiver shall be issued through a written determination that includes the following: The preliminary facts and circumstances regarding the identified non-compliant parts and the likely cause for non-compliance. The types of parts to which the interim waiver applies, including any additional parts currently being evaluated for potential non-compliance with the defense sourcing restriction statutes based on the findings in subparagraph (A). A determination that the non-compliant parts and any additional parts being evaluated for potential non-compliance do not represent a security, safety, or flight risk. An assessment of program risk due to non-compliance to include an overall risk level determination that if exceeded would require a new interim national security waiver. Any interim national security waiver determination shall be submitted to the congressional defense committees within five days of the date of issuance. The authority to issue an interim national security waiver under this subsection shall expire not later than January 1, 2027. For the purposes of this section, non-compliant components are those that are covered by the following provisions of law: Section 4863 of title 10, United States Code, relating to a requirement to buy strategic materials critical to national security from American sources. Section 1211 of the National Defense Authorization Act for Fiscal Year 2006 ( Public Law 109–163 ; 10 U.S.C. note prec. 4651), relating to a prohibition on procurements from Chinese military companies. Section 4873 of title 10, United States Code, relating to additional requirements pertaining to printed circuit boards. Section 154 of the National Defense Authorization Act for Fiscal Year 2024 ( Public Law 118–31 ; 10 U.S.C. note prec. 4651), relating to a prohibition on availability of funds for procurement of certain batteries. Section 244 of the National Defense Authorization Act for Fiscal Year 2024 ( Public Law 118–31 ; 10 U.S.C. note prec. 4651), relating to a limitation on sourcing chemical materials for munitions from certain countries. Section 805 the National Defense Authorization Act for Fiscal Year 2024 ( Public Law 118–31 ; 10 U.S.C. note prec. 4651), relating to a prohibition on procurements related to entities identified as Chinese military companies operating in the United States. A contractor receiving a waiver under this section shall retain the responsibility to develop and implement a corrective plan to ensure future compliance and demonstrate the noncompliance was neither willful nor knowing. The contractor shall use reasonably expedient means to qualify an alternative compliant supplier, where available, for procurements of items that are to be incorporated into future deliveries of end items. The authority under this section shall expire on January 1, 2027. Not later than April 1, 2026, and April 1, 2027, the Under Secretary of Defense for Acquisition and Sustainment shall provide a briefing to the Committees on Armed Services of the Senate and House of Representatives on expedited acceptances authorized under this section and corrective action plans of contractors to ensure future compliance with existing authorities.
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- Pub. L. 109-163
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Sec. 863
Expedited acceptance program for supply chain illumination
Pub. L.Pub. L. 109-163
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