Sec. 224. REQUIRING DEFENSE MICROELECTRONICS PRODUCTS AND SERVICES MEET TRUSTED SUPPLY CHAIN AND OPERATIONAL SECURITY STANDARDS
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## SEC. 224 REQUIRING DEFENSE MICROELECTRONICS PRODUCTS AND SERVICES MEET TRUSTED SUPPLY CHAIN AND OPERATIONAL SECURITY STANDARDS **[**[10 U.S.C. 2302 note](/us/usc/t10/s2302)**]** ###
(a)Purchases To protect the United States from intellectual property theft and to ensure national security and public safety in the application of new generations of wireless network technology and microelectronics, beginning no later than January 1, 2023, the Secretary of Defense shall ensure that each microelectronics product or service that the Department of Defense purchases on or after such date meets the applicable trusted supply chain and operational security standards established pursuant to subsection (b), except in a case in which the Department seeks to purchase a microelectronics product or service but— ####
(1)no such product or service is available for purchase that meets such standards; or ####
(2)no such product or service is available for purchase that— #####
(A)meets such standards; and #####
(B)is available at a price that the Secretary does not consider prohibitively expensive. ###
(b)Trusted Supply Chain and Operational Security Standards ####
(1)Standards required #####
(A)Not later than January 1, 2021, the Secretary shall establish trusted supply chain and operational security standards for the purchase of microelectronics products and services by the Department. #####
(B)For purposes of this section, a trusted supply chain and operational security standard— ######
(i)is a standard that systematizes best practices relevant to— ######
(I)manufacturing location; ######
(II)company ownership; ######
(III)workforce composition; ######
(IV)access during manufacturing, suppliers’ design, sourcing, manufacturing, packaging, and distribution processes; ######
(V)reliability of the supply chain; and ######
(VI)other matters germane to supply chain and operational security; and ######
(ii)is not a military standard (also known as “MIL-STD”) or a military specification (also known as “MIL-SPEC”) for microelectronics that— ######
(I)specifies individual features for Department of Defense microelectronics; or ######
(II)otherwise inhibits the acquisition by the Department of securely manufactured, commercially-available products. ####
(2)Consultation required In developing standards under paragraph (1), the Secretary shall consult with the following: #####
(A)The Secretary of Homeland Security, the Secretary of State, the Secretary of Commerce, and the Director of the National Institute of Standards and Technology. #####
(B)Suppliers of microelectronics products and services from the United States and allies and partners of the United States. #####
(C)Representatives of major United States industry sectors that rely on a trusted supply chain and the operational security of microelectronics products and services. #####
(D)Representatives of the United States insurance industry. ####
(3)Tiers of trust and levels of security authorized In carrying out paragraph (1), the Secretary may establish tiers and levels of trust and security within the supply chain and operational security standards for microelectronics products and services. ####
(4)General applicability The standards established pursuant to paragraph
(1)shall be, to the greatest extent practicable, generally applicable to the trusted supply chain and operational security needs and use cases of the United States Government and commercial industry, such that the standards could be widely adopted by government agencies, commercial industry, and allies and partners of the United States as the basis for procuring microelectronics products and services. ####
(5)Annual review Not later than October 1 of each year, the Secretary shall, in consultation with persons and entities set forth under paragraph (2), review the standards established pursuant to paragraph
(1)and issue updates or modifications as the Secretary considers necessary or appropriate. ###
(c)Ensuring Ability to Sell Commercially ####
(1)In general The Secretary shall, to the greatest extent practicable, ensure that suppliers of microelectronics products and services for the Department of Defense subject to subsection
(a)are able and incentivized to sell products commercially and to governments of allies and partners of the United States that are produced on the same production lines as the microelectronics products supplied to the Department of Defense. ####
(2)Effect of requirements and acquisitions The Secretary shall, to the greatest extent practicable, ensure that the requirements of the Department and the acquisition by the Department of microelectronics enable the success of a dual-use microelectronics industry. ###
(d)Maintaining Competition and Innovation The Secretary shall take such actions as the Secretary considers necessary and appropriate, within the Secretary’s authorized activities to maintain the health of the defense industrial base, to ensure that— ####
(1)providers of microelectronics products and services that meet the standards established under subsection
(b)are exposed to competitive market pressures to achieve competitive pricing and sustained innovation; and ####
(2)the industrial base of microelectronics products and services that meet the standards established under subsection
(b)includes providers manufacturing in the United States or in countries that are allies or partners of the United States.
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Sec. 224
REQUIRING DEFENSE MICROELECTRONICS PRODUCTS AND SERVICES MEET TRUSTED SUPPLY CHAIN AND OPERATIONAL SECURITY STANDARDS
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